Amazon Prime One-Day Shipping
Amazon Prime One-Day Shipping refers to Amazon's April 2019 announcement that it would make free one-day delivery the standard for Prime members, starting with an $800 million investment.
What happened and why it matters
Amazon's move to one-day delivery reset shopper expectations and pushed other retailers and 3PLs to place inventory closer to customers. On its April 25, 2019 earnings call, Amazon said it would spend about $800 million in the next quarter to shift Prime's default from two days to one, starting in North America. Rivals' shares fell on the news, and Walmart and Target soon expanded their own fast-shipping offers. Delivering in one day depends on stock already being within a short ground trip of the buyer. That is why many brands now split inventory across two or more fulfillment centers to reach more customers in one or two shipping zones.