Amazon one-day shipping is a hit with shoppers – and it cost less than the expected $1.5 billion | MarketWatch

Consumers have a need for delivery speed, and Amazon.com Inc.’s one-day shipping satisfied it over the holiday shopping season.

Amazon headed to a $1 trillion valuation after reporting earnings of $6.47 per share late Thursday, blowing past the $4.04 FactSet consensus, and reaching record quarterly sales of $87.4 billion.

See: Amazon’s record holiday sales send stock soaring toward $1 trillion valuation“What we saw was essentially a very strong holiday performance from the middle of November on,” said Amazon’s Chief Financial Officer Brian Olsavsky on the earnings conference call, according to a FactSet transcript. “We also had a very big uptick in response to the one-day availability that’s been building through the year.”

Moreover, the e-commerce and technology giant was able to pinch a few pennies, with the cost for cutting free Prime shipping down to one day from two came in less than the anticipated $1.5 billion.

mw-ht700_amazon_zg_20191021105542Source: Amazon one-day shipping is a hit with shoppers – and it cost less than the expected $1.5 billion – MarketWatch