According to Olsavsky, Amazon plans on spending $800 million in this year's second quarter to build out the infrastructure needed to make the one-day delivery times possible.
While Amazon already offers one-day and two-hour shipping options to Prime members, the options are now only available for certain products in certain locations, and sometimes there are additional costs.
"Further, investment in one-day shipping is directly going to be a cost that we bear and it's also going to be a direct benefit to sellers as well Prime eligible selection in our warehouses".
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"More broadly, we're seeing continued momentum in enterprise migrations", he said.
Amazon, which hooked shoppers on getting just about anything delivered in two days, announced Thursday that it will soon promise one-day delivery for its Prime members on most items.
Amazon will continue to offer "accelerated basis" shipments, assumedly for an additional fee, in addition to current efforts to shrink general shipment times for all products down to a single day.
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Amazon's digital advertising business, meanwhile, grew about 34 per cent to roughly US$2.7b, compared to 95 per cent growth in the first quarter of past year.
Amazon's push into advertising and cloud computing is paying off, helping the online shopping giant's first quarter profit more than double from a year ago. It overhauled the ad business to make it easier for brands and ad agencies to manage marketing campaigns that include search ads on Amazon.com, display ads on websites across the internet, and video ads on properties like IMDB Freedive, a new ad-supported streaming service from Amazon. For years, Amazon has made expensive bets on new technology and programs, like its $13.7 billion purchase of Whole Foods Market in 2017 to become a player in the U.S. grocery business.
The unit's operating income was US$2.2 billion, or 50 per cent of Amazon's total. Amazon plans to spend $800m (£620m) to cut delivery times elsewhere. That was the first increase in five years. The cloud businesses's operating income came to $2.2 billion for the quarter. It recently announced investments in self-driving and electric auto companies, teasing how it thinks these high-tech, capital-intensive businesses could pay dividends potentially in the form of autonomous deliveries in the long run. Analysts had expected earnings per share of $4.72.
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