The reason why Amazon is heavily investing in faster delivery
Amazon shoppers who get same-day delivery are likely to spend and shop more on the e-commerce site compared with shoppers who don’t get same-day delivery.
The survey data, collected by the investment firm RBC Capital, shows why Amazon is heavily investing in shortening delivery time, reports CNBC.
Here are some takeaways from the survey, which covered more than 1,900 people:
Higher spending: 48% of same-day delivery customers said they spend over $800 a year on Amazon, compared with 33% of those without the same-day shipping option.
More frequent purchases: Same-day delivery users also shop more frequently on Amazon, with 77% of them saying they use Amazon at least two to three times a month versus 50% for customers who don’t use same-day delivery.
More loyalty: Same-day delivery shoppers also turn out to have a higher intent to spend on Amazon in the next 12 months, while having a much higher satisfaction rate as well.
“The clear takeaway is that with One-Day and Same-Day Delivery, and Prime Now (1-2 hour delivery), Amazon is creating more convenience and greater selection for shoppers, which enhances the value proposition”, said RBC Capital representative.
More Amazon news
Amazon is facing probe by US antitrust officials
The FTC is interviewing Amazon sellers as part of antitrust probe Antitrust officials have begun interviewing Amazon sellers to determine whether the e-commerce giant is using its market power to hurt competition. Federal Trade Commission investigators...
The impact of US-China tariff escalation on Amazon sales
Tariff escalation affects US-based Amazon sellers more than their competitors in ChinaThe series of tariffs imposed by the United States on Chinese goods has impacted both US and China-based Amazon vendors, but US sellers are taking a bigger hit to their...
Amazon is the favorite brand among millennials
Amazon displaces Apple as millennials' favorite brandAmazon is the favorite brand among millennials, according to a new survey from Moosylvania. The company ousted Apple from the number one spot, which held it for the past six years.It's official:...