Amazon is making one-day shipping the standard for Prime members.
During the company’s first-quarter earnings call last Thursday, Chief Financial Officer Brian Olsavsky said that Amazon plans to shorten the current two-day default free shipping plan to one day from Prime members.
”We’re currently working on evolving our prime free two-day shipping program to be a free one-day shipping program,” Olsavsky said.
In order for these changes to happen, Amazon will be planning on spending over $800 million in the second quarter to improving warehourse and delivery infrastructures said Olsavsky at the conference call. This investment in return will also be cutting into Amazon’s profit margins and due to that the company has prepared for that.
Currently, Amazon does have one-day and two-hour shipping for certain products for an extra cost but this change would increase the amount of items available for one-day shipping along with the free cost that comes with being a Prime member. Olsavsky did state that currently the company offers over 100 million items for free two-day shipping. The change will first take place in the North American market, Olsavsky noted, but is designed to expand globally, across all countries that offer Prime memberships. Amazon said last year that it has over 100 million Prime members worldwide.
He aslo did state that he would use all available resources to make free one-day shipping possible which include existing partnerships with the U.S. Postal Service and UPS as well as Amazon’s very own third-party delivery network. Olsavsky declined to give more details about the change like the timeline for the one-day shipping saying that the move involves many different moving parts and that “We’re taking a significant step.”
It has become a common occurrence to see ads displayed on whatever website or app that you use. Well, expect to see more of them when you go shopping on Amazon.
Amazon has decided to start displaying video ads to online shoppers as a way to make more money for the company that seems like it doesn’t have enough money in the world.
This has been a part of a several months long beta that Amazon has been testing out on their mobile apps. According to a Bloomberg report, this rollout will be coming to the Android and iOS versions of Amazon’s mobile app in the coming weeks. The video ads that will play to users will be about search items that they have been looking at.
It will also include shoppers’ tips and how to items that Amazon sees as a way to make people stay on their app instead of leaving the app to look at videos of the product on sites like YouTube.
It is reported to be a way for Amazon to break up the monopoly of video advertisement that Google and Facebook have set up for themselves. Amazon will now account for at least 8.8% of the digital advertising market, while Google still claims over 37%, which is a decrease of 1% from last year,
Amazon is also increasing their budget to show ads online by 22%, equaling $16 billion for this year.
Amazon sees the opportunity to increase their value by doing this, and we will see in the end whether or not this will work for them.
After months of discussion about the location of Amazon’s second headquarters, aka HQ2, with options that include Dallas and Los Angeles, a leaked memo may have the answer. Amazon may have decided the place for their newest headquarters, and it could be good news for Radford students as well.
On Saturday, a leaked memo that was released by the Washington Post (owned by Amazon founder Jeff Bezos) showed that Northern Virginia has won the bid for Amazon headquarters. The post would not release the leaker’s name, and Amazon has not made a comment about the situation.
However, city leaders in Crystal City, VA are not happy with the leaker. Mike Grella, Amazon’s director of global economic development, said in a tweet that the leak was not doing Crystal City any favors.
Griella also stated that the decision would not be decided based off of Bezos’ travels. It has also been rumored that the selection of the new headquarters would be based off where his corporate jet flies as well as the Washington Post. That would leave the choices down to Northern Virginia and the New York area.
Of course, the area that wins the bid will be set economically as Amazon plans on investing over $5 billion into the local market, adding more than 50,000 jobs and yielding an average pay of over $100,000. As many as over 250,000 jobs will also be indirectly added as well, according to Enrico Moretti, an economics professor at the University of California Berkeley.
Amazon has graced us with many products and services over the years through their online store. However, when they announced that they would be building and selling their own products through their highly popular website, the skeptics went crazy. Their e-reader, the Kindle, shocked and dazzled people who truly love books. Later generations incorporated touch screens, wireless services and that oh-so-nice backlight.
Not only has Amazon introduced an illuminated reader – dubbed the “Paperwhite” – but the Internet behemoth has also thrown down the gauntlet in the tablet market, expanding its Kindle Fire family with several new options.
According to The Huffington Post, there are now four kinds of Kindle Fire available, including an updated version of the original with longer battery life, twice the original RAM, and a price of $159 – down from the original $199. Other options include a 7-inch Kindle Fire HD and an 8.9-inch Fire HD – both with 16 GB of storage space – and an 8.9-inch Fire HD with a whopping 32 GB storage and 4G LTE. These devices are priced at $199, $299 and $499 respectively. Continue reading Amazon revamps Kindle Fire, introduces new “Paperwhite”→