Evercore Highlights Amazon (AMZN) Grocery Strategy and Prime Stickiness

Amazon.com, Inc. (NASDAQ:AMZN) ranks among the best drone stocks to buy according to analysts. Evercore ISI highlighted Amazon.com, Inc. (NASDAQ:AMZN)’s strategic actions in the grocery industry on August 13, reaffirming its Outperform rating and $280 price target on the company. The firm noted that by strengthening customer engagement through a high-frequency purchase category, Amazon’s tighter integration of groceries into the Prime ecosystem raises customer lifetime value and stickiness.

Amazon’s $25 free delivery threshold, according to Evercore ISI, puts pressure on rivals like Walmart and Instacart to lower their prices. The approach is in line with Amazon’s previously declared $4 billion commitment to use the country’s current logistics infrastructure to extend its same-day and next-day delivery network to over 4,000 smaller and rural U.S. communities by 2026.

According to Evercore’s 13th Annual Amazon Survey, Prime Same-Day delivery multiplies the frequency of purchases, the expansion of categories, and the total amount spent by customers on Amazon.com, Inc. (NASDAQ:AMZN). The firm refers to this as “Shipping Elasticity”, which suggests that faster shipping results in more frequent and larger purchases.

Amazon.com, Inc. (NASDAQ:AMZN), is an American multinational technology company that offers a wide range of commercial interests that include digital streaming, online advertising, e-commerce, cloud computing through Amazon Web Services (AWS), and artificial intelligence.

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Disclosure: None. This article is originally published at Insider Monkey.