) recently announced that it will expand Sunday package delivery
service to nearly 15 cities. The cities include Indianapolis;
Lexington and Louisville, KY; New Orleans and Shreveport, LA;
Cincinnati and Columbus, OH; Oklahoma City; Philadelphia; Dallas,
Houston, San Antonio, Austin, Waco and College Station, TX.
Amazon introduced Sunday package delivery service in November
2012 in New York and Los Angeles. The service allows Amazon Prime
members, who receive unlimited two-day shipping, to order online by
Friday and receive the items by Sunday through the U.S. Postal
Service. The service, available to all Prime members for free, will
offer millions of items including baby supplies such as newborn
apparel, books and toys.
With a view to make this expansion a success, Amazon has already
started investing in warehouses.
This is the latest effort by the company to expand operational
activities (shopping) and attract new customers after it increased
the prime membership annual fee to $99 from $79. Recently, Amazon
) sealed a deal to enable Twitter users to shop directly from
Amazon's e-Commerce portal. In April, the giant online retailer
released an Android-based Internet video-streaming set-top box
named Fire TV. Additionally, Amazon launched Prime Pantry, a
grocery delivery service, for its Prime members in the same
We believe the company's ever-expanding content portfolio will
to attract subscribers despite the price rise.
However, significant competition from
) and other online retailers remain a matter of concern.
Furthermore, Amazon's continuing investments in fulfillment centers
could hurt profitability, going forward.
Currently, Amazon has a Zacks Rank #3 (Hold). Another stock that
has been performing well and is worth considering include
), carrying a Zacks Rank #1 (Strong Buy).
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