“Amazon’s launch of free one-day shipping in 2019 rocked the retail boat. We first wondered how it would work (answer: further doubling-down on their fulfillment network), then how it would affect profit margins (answer: minimal), and finally how accretive it would be for Prime membership (answer: quite significant. Piper Jaffray expects 30% higher usage of Prime as a result). Walmart soon followed suit with their own one-day shipping program.
But with these questions answered in 2019, there’s a new one to answer in 2020: How will consumers rationalize their dependency on fast shipping with their stated sustainability goals?”