Amazon's one-day Prime shipping service has been an expensive investment for the company so far, but it's betting that if it can help it crush the competition, it will be well worth it.
"It strengthens the need to not have to go elsewhere to buy a product because you need it quickly," CFO Brian Olsavsky said in an earnings call Thursday.
That's not good news for retailers already reeling from the "Amazon effect."
Amazon's one-day Prime shipping service has been an expensive investment for the company, but it's betting that if it helps it crush the competition, it will be well worth it.
In a call with investors on Thursday, after releasing second-quarter results, CFO Brian Olsavsky commented on the progress of one-day shipping since it was rolled out for certain products in April.
Olsavsky said that the costs associated with it had been higher than expected (it went over Amazon's $800 million estimate for Q2) but that Amazon was playing the long game.