Amazon's burgeoning growth may be due to its move to shift free two-day shipping with Prime to just one-day:
same-day shipping with a Shipt membership or for a $9.99 fee. Shipping offerings like these help merchants avoid being eclipsed by Amazon on delivery, which may convince consumers to still consider shopping with them rather than defaulting to Amazon.
Amazon's fulfillment costs have surged over the past two quarters, and while it can likely handle the costs of faster delivery, retailers with less funds may struggle to. Amazon's fulfillment expenses totaled $360 million in Q2 2019 and $301 million in Q3, rising 12.5% annually and 11.
. Not all merchants can afford such expenses, but to keep up they should still try to find ways to offer fast shipping, whether through a subscription fee or just during key shopping periods like the holidays.Payments & Commerce Pro , Business Insider Intelligence's expert product suite keeping you up-to-date on the people, technologies, trends, and companies shaping the future of consumerism, delivered to your inbox 6x a week. >>
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