Amazon and Wal-Mart Battle for the Last Mile
One of the things that vaulted Amazon.com, Inc. (NASDAQ: AMZN) to the lead in e-commerce was an early focus on delivery. The company offered free shipping to customers who exceeded certain spending thresholds. With Amazon Prime, launched in 2005, Amazon gave U.S. members unlimited, free two-day shipping for eligible items for $99 per year. Since then, the company has gone on to offer next-day and same-day shipping to Prime members on a growing list of select items.
Those moves now seem prescient. Consumer Intelligence Research Partners estimates that Prime currently counts 90 million U.S. members, who spend about $1,300 on average per year, compared to an estimated $700 per year for non-members.
While other retailers are countering, Amazon is looking to take its advantage to the next level by gaining control of the last leg of the journey when delivering products to the customer.
Source: Fool.com
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