What: After closing physical stores, Amazon doubles down on one-day delivery.

Why is it important: Prime members will love an increasing number of Prime shipments delivered in just one day. The company may need to justify this year's USD 20 Prime fee spike, as well as the doubling of fulfillment capacity in the last two years, which was necessary to meet demand during the pandemic.

Having largely abandoned brick-and-mortar retail outside of grocery, with traditional retailers mastering digital and omnichannel commerce and consumers returning to shop in stores, such swift delivery may be an important differentiator. Amazon lost market share to physical retailers during the holidays.

The company does plan to open a clothing store later this year, which may or may not be what rumors of its department store ambitions were about. But so far, Amazon hasn't proven adept at physical retail.

Amazon’s brick and mortar lacked a real purpose, they were designed for people to pop in and browse rather than as destinations where people would head on a mission to buy something. Ultimately, this wasn't great for driving footfall especially in an era where people are visiting shops less. The other issue is the assortment which, in many outlets, was disjoined and unfocused.

Amazon doubles down on one-day delivery