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Amazon adds Prime Same-Day delivery to 11 metro areas

April 6, 2016 04:09 PM
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More Amazon Prime customers have access to same-day delivery, as Amazon.com Inc. expands the service to 11 more U.S. metro areas.

Prime Same-Day delivery is available in 27 metro areas in the United States, with more than 1 million products eligible for the fast delivery. Orders placed in the morning will arrive by 9 p.m. any day of the week, the company says. Amazon Prime shoppers must spend at least $35 per order to receive same-day deliveries.

The 11 new metro areas announced Wednesday are: Charlotte, N.C.; Cincinnati; Fresno, Calif.; Louisville, Ky.; Milwaukee; Nashville, Tenn.; Raleigh, N.C.; Richmond, Va.; Sacramento, Calif.; Stockton, Calif.; and Tucson, Ariz.

All 27 metro areas where Prime Same-Day is available:

Same-day delivery is only one of the options for fast shipping that Amazon offers to Prime customers, who pay $99 a year to get product shipping at no additional cost. With Prime Now service, customers in 25 metro areas can get two-hour delivery at no additional cost, or pay $7.99 for one-hour delivery, on tens of thousands of products. All Prime customers have access to two-day shipping at no additional cost on more than 30 million products.

“Amazon’s goal is to enable delivery of practically any product, to almost every customer, within an hour,” Colin Sebastian, analyst at Baird Equity Research, wrote in a note to investors. “In the meantime, we believe convenient and fast delivery continues to be one area of competitive differentiation for Amazon, as more and more general merchandise is sold through the platform, and skipping the traditional bricks-and-mortar channel.”

In addition to expedited delivery options, Prime customers have access to streaming music and video, cloud storage and other services for their $99 annual fee. Amazon does not disclose the number of Prime subscribers, however securities research firm Consumer Intelligence Research Partners LLC in January estimated the retailer ended 2015 with 54 million U.S. members, up 35% year over year. That’s equal to 47% of all U.S. Amazon shoppers, the firm says.

Consumer Intelligence Research Partners on Wednesday estimated Amazon sold 3 million Amazon Echo devices since launching the product in 2014, including 1 million devices during the 2015 holiday shopping season. The Echo device is a voice-controlled speaker that lets people stream music and search the Internet.

 

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