Amazon starts to 'monetize' speed as it tests a radical new all-day, 10-window delivery service

Amazon is testing a 24/7 delivery service that offers premium slots for faster shipping. The new model could materially raise delivery costs, but management believes higher sales volume from quicker fulfillment could offset those costs and make the program profitable. Expect near-term margin pressure if rolled out broadly; revenue and customer adoption will determine net benefit.

Analysis

Amazon is testing a 24/7 delivery service that offers premium slots for faster shipping. The new model could materially raise delivery costs, but management believes higher sales volume from quicker fulfillment could offset those costs and make the program profitable. Expect near-term margin pressure if rolled out broadly; revenue and customer adoption will determine net benefit.