Amazon's Scale-Up of One-Day Shipping Hasn't Been Great, But It's Been Good
When e-commerce behemoth Amazon.com (NASDAQ: AMZN) began offering free one-day shipping on a small universe of goods purchased by Prime customers, I expressed concerns. Chief among those worries was the sheer cost of offering quick no-cost shipping. It might cost more than it's worth, eating into margins rather than expanding them.
My concern wasn't terribly merited. The organization isn't more profitable as measured by margins. The added expense linked to the strategy, moreover, hasn't soared to devastating levels.
The timing of this assessment isn't completely fair. The COVID-19 pandemic is clearly forcing businesses to operate in unusual circumstances; these numbers might look different were the coronavirus not slowing the global economy down.
Source Fool.com