Amazon’s One-Day Delivery System Drives Revenue Profit Cost Up by 21%
On Thursday, Amazon.com Inc. has reported its first profit in two years and revenue income growth in the current quarter. The results are owing to higher costs through Amazon’s one-day delivery to boost sales growth in the current year. At the moment, the company is focusing on investing more on one-day delivery of products exclusively for Prime members. It seems like; the notion is for staying one step ahead from competitors such as Walmart Inc. and others. The retail giant is also investing a hefty amount faster shipping of products with revenue growing over 20% to US$ 63.4 billion during Q2 2019. Even more, the company has announced a plan to pay out more on the formation of an effective delivery system. Amazon is preparing for the winter holiday shopping season for the current year through this plan.
Amazon.com Inc. has also expanded the one-day delivery system to more than 10 million products globally. The US-based company has even registered more than 100 million paid subscribers to its Prime services ‘loyalty club’. Under this scheme, the company offers numerous unique TV shows along with a wide range of gadgets with the latest features, including voice assistant such as Alexa. The retail giant also offers services such as speedy shipping for numerous goods, including groceries through its subsidiary, Whole Foods Market. Currently, Amazon is moving towards a marketplace model, in which it can earn more profit by offering services to other merchants.
The company has reported a rise of 23% of profits from seller services in Q2 2019; it accounts for around US$ 12 billion. Besides the Ad and other sales have experienced a boost by 37%, i.e., US$ 3 Bn. Even more, the price has increased to over US$ 800 million, which is beyond the estimations of the company. Whereas, many retailers are allowing customers to pick products and delivery on the same day. All these services help the company to maintain its share in the competitive market. Amazon is also expanding US services to global customers as well as strengthening its Amazon Web Services (AWS) sales staff and marketing for products and services.