Loyalty & Rewards

Amazon Sweetens Up Prime With Free Same-Day Delivery

Amazon has made it pretty clear that it's going to reward its Prime customers with ongoing perks. And yesterday (May 28), Amazon announced another perk that will ensure its Prime Customers can get the most out of their shipping experience by delivering same-day packages for free, with some exceptions.

For those who have the $99 membership, Amazon said it's rolling out the offer across 14 metropolitan areas. While its Prime Now service is already free in New York City, Atlanta and Baltimore, for customers who need, or want, those goods delivered in two hours, this expansion of free same-day packages seems to be the next logical step toward Amazon growing its Prime footprint. While members previously received free two-day shipping, and paid $5.99 for same-day delivery, that extra cost has now been wiped away in these areas (for qualifying orders over $35). The one-hour cost for delivery is still $7.99 for those members.

Beyond the three cities above, free Prime Same-Day Delivery is now being added to the Seattle/Tacoma area, San Francisco, Los Angeles, San Diego, Phoenix, Dallas/Ft. Worth, Indianapolis, Tampa Bay, Washington, D.C., Boston and Philadelphia. Chicago may also be added to the list soon, as reports indicate Amazon is going to take over a warehouse space in the city.

What that means for Amazon's distribution channels, however, is that those warehouses will need to package up more orders, and package them up quicker. Earlier this week the eCommerce giant announced its plans to expand its physical presence, as Amazon will hire more than 6,000 full-time employees across the U.S. at its fulfillment centers. The employees are being hired to “meet growing customer demand,” Amazon said, as they are needed to keep up with Amazon’s ever-growing number of packages that need to be packed up and shipped out in a rapid manner.

That growing demand is likely to grow even quicker now that Prime is getting more perks. The plan to roll out same-day shipping has been in the works for years.

“We have a long-term vision for this program but also, we have been working on same day since 2009,” Amazon Spokeswoman Julie Law told The Wall Street Journal. “We are building on our existing infrastructure and improving the process and experience for many years to make this cheaper for customers and as easy as possible.”

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The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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