Amazon explains its efficiency in one-day shipping - Business Insider

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Amazon spent less money than expected on shortening its standard delivery time to one day last quarter — here's how it did it

This story requires our BI Prime membership. To read the full article,Amazon's CFO Brian Olsavsky said "efficiency" in its delivery infrastructure has helped the company save on shipping costs last quarter.

The increased efficiency could lead to further cost savings, and help Amazon spend less than initially expected in rolling out its one-day delivery program across its site.Amazon is becoming smarter with its delivery infrastructure — and that's helping the company save money in offering quicker delivery.that Amazon spent "slightly less" than the $1.5 billion it had earmarked for the holiday quarter in shortening its standard delivery time to a single day.

The comments show that Amazon's plan to roll out one-day delivery across the site could cost less than anticipated. Amazon said last year that it planned to spend roughly $3 billion in building out its one-day delivery program, and on Thursday, estimated another $1 billion investment for this quarter.

 

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