What's Going On With Amazon.Com Stock Thursday?

Amazon.Com, Inc AMZN has had a very eventful 2023, from tapping artificial intelligence to drive logistics and delivery, overhauling its grocery business, developing its AI chip, powering its Amazon Prime offerings, intensifying rivalry with Walmart Inc WMT, downsizing its workforce, and more.

Amazon CEO Andy Jassy explained the company's strategy for achieving same-day order fulfillment to CNBC's Jim Cramer. 

Amazon transformed its U.S. fulfillment network from a flat regional model into eight regional hubs and reconfigured its placement algorithms to position items closer to customers. 

Additionally, the company uses "sub-same-day facilities" to expedite shipping, with many centers housing about a million SKUs ready for same-day dispatch.

This restructuring reduced transportation distances, lowered costs, accelerated deliveries, and decreased Amazon's service costs. 

Consequently, Amazon has shifted from predominantly two-day shipping to a significant portion of orders delivered in one day and, increasingly, on the same day. 

Also Read: Amazon Eyes Veterinary Telehealth To Rival Walmart

In the year's first half, 60% of shipments in Amazon's top 60 metropolitan areas were same-day or one-day deliveries. 

Jassy noted that faster delivery significantly boosts customers' conversion rates and their likelihood to make purchases, as customers appreciate receiving items quickly.

Jassy, in a conversation with 'Mad Money' host Jim Cramer, discussed various aspects of Amazon, ranging from Prime services to AI investments, Amazon Web Services, and other significant topics.

Prime Video and Premier Boxing Champions (PBC) have entered into a multiyear rights agreement to broadcast boxing's most prominent events, granting fans access to top matchups and significant sports stars. 

The deal allows Prime Video to distribute PBC's pay-per-view events in the U.S., starting in March 2024, available to all viewers for purchase, Prime membership notwithstanding. 

Price Action: AMZN was up 1.99% to $147.39 on the last check Thursday.