Your Amazon Prime Delivery Is About to Speed Up

Amazon's profit surges on cloud computing, advertising gains
Money-maker Amazon's profit more than doubles in three months

27 April, 2019

If you're an Amazon Prime subscriber, you've undoubtedly enjoyed the benefits of free two-day shipping, and it's most likely the reason you even subscribe. Overall, first-quarter sales rose 17 per cent to US$59.7b, compared to sales growth of 46 per cent a year ago.

Olsavsky downplayed the significance of the rate of year-over-year revenue growth slowing sequentially from the 45 percent of the previous quarter. "We expect to make steady progress quickly and through the year", Olsavsky said.

Amazon executives discussed the "slowdown" in advertising growth during the earnings call with Wall Street analysts.

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For now, it isn't clear when Amazon will complete the transition to the faster delivery time. Revenue from Amazon Web Services grew 41 per cent to US$7.7b, compared to growth of 49 per cent a year earlier. Amazon did not comment on whether drones will fuel this default one-day speed boost for paying Amazon Prime subscribers' deliveries. Amazon officially opened its new 1.2 million square foot fulfillment center in Tracy, California that employs more than 1,500 full time workers as well as 3,000 Kiva robots that can fetch merchandise for workers and are capable of lifting up to 750 pounds.

Global online marketplace Amazon has grown its net income 118 per cent during the first quarter of 2019, from US$1.6 billion to US$3.56 billion ($2.28 billion to $5.07 billion).

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Amazon plans to make one-day shipping the new standard for Prime members, CNET reports the company said in an earnings call Thursday.

The company didn't say when the change would happen, but says it has been growing its warehouses and shipping network to offer faster deliveries.

In the first quarter sales rose 17% to $59.7bn.

Advertising is still a bright spot for Amazon, and a core focus for the company as it builds the marketing technology infrastructure so brands can sell their goods on its platform. Amazon's headcount increased 12 percent to 630,600 employees. That has given investors confidence the company can continue to expand its profitability, even as fellow technology giants like Alphabet and Facebook see their margins narrow, Thill said.

Losses narrowed considerably in Amazon's global unit.

The initiatives reflect how the world's largest online retailer has long invested in still-untested technology and programs, like its $13.7 billion purchase of Whole Foods Market to bolster home grocery deliveries.

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