By
George Anderson, Editor-in-Chief, RetailWire
Customer
centricity is what Amazon is all about and
the retailer knows a significant aspect
of what its shoppers want is getting their
products when they want them, in some cases
on the same day.
According
to the Seattle Post-Intelligencer,
Amazon's transportation director Mike Bhaskaran
said the company was looking to expand its
same-day delivery service beyond areas within
New York City where it is currently offered,
ideally to locations "all over the
country." Right now, orders in New
York that are received by 11:00 a.m. can
be delivered to some parts of the city the
same day. Costs vary based on what is being
shipped.
An
analyst with ThinkEquity Partners, Edward
Weller, told the Post-Intelligencer
that same-day delivery is a very small part
of Amazon's business. The company has continued
to emphasize its Amazon Prime service where
customers can receive second-day delivery
of all orders throughout the year for a
$79 fee.
Discussion Question for the BrainTrust
panel: Is
speed of delivery a critical part of success
in e-tailing? What do you see as the potential
for same-day deliveries and what other markets
do you think could support such a service
should Amazon offer it?
RetailWire
Instant Poll Results:
RetailWire BrainTrust Comments:
As
U.S. consumers urbanize and population densities
increase, the economic and logistical feasibility
of delivery comes within reach. The stars
are aligning for this model--especially
for center store items. My only change to
this question--it's not "online,"
it's "mobile" ordering.
- Liz
Crawford, VP Consumer Strategist, Iconoculture
|
Interscope's Alison Chaltas
Says : |
 Certainly
in today's immediacy culture, speed
is a benefit that consumers are willing
to switch and pay for.
What do you
say? Send
us your comments here |
Certainly
in today's immediacy culture, speed is a
benefit that consumers are willing to switch
and pay for. Though what is more important
is clear expectations on delivery time and
meeting or exceeding them. Why do shoppers
get more annoyed over a 20 minute wait at
the drug store pharmacy counter than three
day shipping policies from a mail order
pharmacy? Because they expect retail pharmacies
to hand them the product "now"
and know that the trade off to mailed scripts
is time.
-
Alison Chaltas, Principal, Interscope
Years
ago, Barnes & Noble's web site started
same day service in Manhattan. Certain fast
food restaurants offer immediate delivery
for web orders. Instant gratification is
always a great lever. Too bad it's very
hard for Amazon to make it profitable. The
article mentioned how Amazon reduced its
price on a best seller. What good is being
customer-centric if you lose more and more
money on every order? If sales of loss leaders
triple, what has the retailer gained? The
customer loyalty of cherry pickers isn't
worth anything.
-
Mark Lilien, Consultant, Retail Technology
Group
Shopping
is either functional or entertaining. Online
shopping is more functional and brick and
mortar book stores are more fun/entertaining.
You should see the independent book seller
near me on a Saturday night--packed with
people over 30! There is no way that Amazon,
as an online retailer, could ever match
the fun of going to a Barnes & Noble,
browsing and having a cup of Starbucks coffee
while figuring out which of 10 books to
actually buy.
So,
which options for growth does that leave
for Amazon as a bookseller? Well, faster,
quicker shipping certainly makes sense as
an incremental improvement in service. Of
course, the big win would come if/when Amazon
opens brick and mortar stores in Times Square,
Michigan Ave., etc. and gets into the entertainment/experience
business. The operational efficiencies of
delivery would be minor compared to the
impact of mega-stores at prime locations,
IMHO.
-
Joel Rubinson, Senior Vice President, General
Manager Solutions, Synovate
Read
the entire story and RetailWire discussion
at:
http://www.retailwire.com/Discussions/Sngl_Discussion.cfm/12175
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