This continued cost is the primary reason that third-quarter operating income outlook came in lighter than many were expecting. In the third quarter, Olsavsky said the cost of the Prime delivery upgrade is expected to accelerate from Q2's $800 million. Amazon spent a little more than $800 million in the quarter on this initiative, which was a main reason for the anemic growth - 3% year over year - in overall operating income and the driver behind the North America segment's profit decline of 15% year over year. Naturally, the cost of this huge project is eating into current profits. In Q2, Amazon's revenue jumped 20% year over year, which represents an acceleration from a 17% growth rate in the first quarter. Management said that this multiquarter initiative has already had a positive impact on revenue growth. In the second quarter, the company began upgrading Amazon Prime's core free-delivery benefit from two days to one day. International was up slightly in Q2, but for the most part, the improvement in delivery speeds will be in future quarters there. We expect to see a continued ramp of the one-day selection and availability for the next few quarters, both in North America and International. So we're in the middle of a journey here. In Q2 we had a meaningful step up in the one-day shipments, primarily in North America, and one-day volume was accelerating throughout the quarter.
So we are really pleased with the customer response into our growing one-day offering.
0 kommentar(er)
