Here's How Much Amazon's 1-Day Shipping Could Be Worth

Amazon (NASDAQ: AMZN) started offering one-day shipping on select items for Prime members last quarter, and it saw an immediate impact from the faster shipping speeds. CFO Brian Olsavsky attributed Amazon's acceleration in North American retail sales growth to its one-day shipping initiatives.

Amazon expects the faster shipping to encourage consumers to buy more convenience items from Amazon instead of brick-and-mortar competitors like Walmart (NYSE: WMT) and Target (NYSE: TGT). At least one analyst agrees, and thinks the shift to one-day shipping could generate $24 billion in additional revenue for the online retail giant. RBC analyst Mark Mahaney expects the move to increase Prime membership sign-ups and the amount each member spends.

Image source: Amazon.

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Source Fool.com