Amazon’s increasing one-day delivery capability will soon cause customers to see any longer delivery option “seem too slow before we know it”.
Morgan Stanley’s analyst Brian Nowak has warned that Amazon’s one-day delivery programme, which it launched across the US for Prime members in June 2019, will extend the retailer’s dominance over the online ecommerce market.
Its rapid delivery capabilities, which Amazon said it was piling a whopping $1 billion (£770 million) into during this quarter alone, has done away with barriers to purchasing products like consumables online.
Nowak warns that this is raising customer expectations to levels other retailers simply cannot compete with.
He estimated that Amazon’s massive investments in one-day-delivery have already helped boost its sales volumes by $36 billion (£27.8 billion).
In the fourth quarter of 2019, Nowak estimates around 40 per cent of units fulfilled by Amazon were delivered via its one-day delivery network, a number that could grow to 50 per cent by the end of 2020.
Compared to Walmart, which launched its own one-day delivery service soon after Amazon, the ecommerce giant delivered around 16 times more online orders.