A new story from Marketplace


You the easy set up for the next next story which is how many billions of dollars less Jeff bays those is worth after Amazon's lousy earnings report yesterday because I mean who can relate right but the reason the company's third quarter profits were so sub par is worth a couple minutes Amazon is your nose offered two day shipping for prime members for nearly a decade now but it is betting the two days isn't fast enough the company is expected to spend around three and a half billion dollars this year to expand same day shipping it's already spent close to two billion and that explains that the bottom line market place's replenish your explains why Amazon is going all in on its need for speed market place editor Michael Lipkin happens to have ordered something for same day shipping from Amazon just this morning I heard of lava tools javelin pro do ambidextrous back with instant read digital meat thermometer okay and did you need that meat thermometer today I mean honestly probably not well okay then you know it doesn't really matter to people whether they get their items in two days or one Brad stone is author of the everything store and senior executive editor for technology Bloomberg but you know Amazon has built a reputation for being the company that can get things to you the fastest but at this point lots of other companies can also do two day shipping Walmart target drug companies use of Scully's lead internet analyst with SunTrust Robinson Humphrey so at ease guys have been trying to catch up with Amazon Amazon move to the next level by moving to one day also same day shipping helps Amazon compete even harder with its ancient nemesis brick and mortar stores for items that the buyer may need quickly and would have otherwise gone to the store to obtain Michael sin is senior research analyst with Piper Jaffray inco but going from two day shipping to same day shipping is expensive because for example usually people by at least two things at a time from Amazon red stone again Alex are different for film and centers for two for two day shipping Amazon has the luxury of sending one of the products to where the other one is putting those in the same box and reducing their transportation costs when you only have one day to do it it's much harder to move products around in the supply chain since Ms on started to invest more in same day shipping growth in the number of items sold more than doubled from ten percent in the first quarter to twenty two percent in the third quarter by the way as of deadline time Michael again has not yet received his.

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