Investors will look for signs that Amazon’s rapid growth of same-day delivery services contributed to the company’s third-quarter profit margin by encouraging customers to place more frequent and larger orders.
Same-day delivery is now available in at least 90 cities, with Prime members receiving it for free and non-members paying $9.99. According to Reuters, the company invested extensively in logistics in 2020 and 2021 to expand the availability of same-day delivery, launched in 2015.
According to LSEG, when Amazon releases profits on Thursday, investors and analysts expect gross profit margins to increase by 2.67% from last year to 47.37%.
“What we find is when we open up same-day (delivery), you generally see customer engagement go up and purchasing go up,” Sarah Mathew, vice president of global delivery experience at Amazon, told Reuters in a recently.
Same-day shipping also increases visits to Amazon.com. This betters its position to increase advertising income, which has increased by at least 20% in each quarter this year compared to 2022.