But the company's ambitions are still sky-high.
"We are committed to realizing our vision for Prime Air and are prepared to deploy where we have the regulatory support we need," Amazon VP Paul Misener said in a statement following the news.
Prime Air VP Gur Kimchi described how he sees the future of Amazon's drones in a recent interview with Popular Science:
"Prime Air is trying to get as close as possible to real teleportation - without breaking the laws of physics."
Prime Air's purpose, he says, is to be able to get people things they want without them having to make any effort. The program should make products come to people wherever they are - like teleportation.
Kimchi described one of his own experiences that would have been perfect for Prime Air. Recently, while his wife was on a business trip, one of their children woke up screaming for a pacifier in the middle of the night. Kimchi couldn't find it. He contemplated waking up his other children, piling them into the car, and driving to a 24-hour pharmacy. It would have been a nightmare.
If Prime Air existed already, the solution would be simple.
"I imagine myself pulling out my phone, pushing a button, and 30 minutes later the pacifier shows up," he says.
Although regulations currently hold Amazon back from creating that future, Kimchi says that he sees the company beginning to make deliveries where it has infrastructure, fulfillment centers, and regulatory support in the next few years.
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.