Amazon reported significant growth in its delivery services, with U.S. Prime members receiving over 8 billion items same or next day in 2025, marking a 30% increase year-over-year. Same-day delivery surged nearly 70%, with around 100 million customers utilizing this option. The company’s North America operating margin also rose to 9%, up from 8% in Q4 2024, while maintaining cost reductions.
Key innovations include a regionalized fulfillment network that reduces delivery distances and costs, expansion of same-day grocery delivery to 2,300 U.S. cities, and Amazon Pharmacy deliveries to over 3,000 cities. Additionally, Amazon has initiated one-hour and three-hour delivery options for over 90,000 products across the U.S. and formed a returns partnership with FedEx, increasing drop-off points to over 10,000 nationwide.
To support its logistics expansion, Amazon outlined a capital expenditure of approximately $200 billion for 2026, focusing on fulfillment and delivery infrastructure. This underscores logistics as a key competitive differentiator for the company as it faces increased competition from firms like FedEx and Walmart, which are also investing in AI and digital transformations to optimize their operations.
