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How Amazon’s ambitious new push for same-day delivery will destroy local retail

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Re: How Amazon’s ambitious new push for same-day delivery will destroy local retail

#51

Post by mikeash »

learc83 wrote: post #43

The other day I ordered something from Amazon, and it showed up in a small cargo van, delivered by a guy without a uniform, and in a package with no UPS or FEDEX label (or any other delivery label I could discern apart from the amazon labels). Was this some kind of test for Amazon ran delivery from a local warehouse?

Amazon often uses smaller regional delivery companies. I assume they're cheaper for the areas they serve. In the DC area, a lot of Amazon orders are delivered with Lasership, which pretty much fits your description. They drive shoddy white cargo vans with PACKAGE DELIVERY slapped haphazardly on the side. Their deliveries often don't make it. Once they delivered my package 30 miles away for no apparent reason (completely unrelated family name, no similarities in address, etc.). Amazon's use of them seems to have declined recently, but they're still using them and it really doesn't seem like a good idea.

Re: How Amazon’s ambitious new push for same-day delivery will destroy local retail

#52

Post by GuiA »

ddt wrote: post #33
rflrob wrote: post #29

Earlier quoted context omitted.

There's certain classes of non-luxury stores that should survive OK. If I need to find a screw for my (insert doohickey here), I'll go to Ace hardware, where I can try out the different screws in their bins, then pick the one that works. The same logic applies to lots of other hardware store type items.

Absolutely, any product that you need to physically inspect before you buy seems like it'd survive.

I wonder how that'll change with 3D printers. What if Amazon gives you a "preview" file of the object you want for your 3D printer?

Re: How Amazon’s ambitious new push for same-day delivery will destroy local retail

#53

Post by dinkumthinkum »

bennesvig wrote: post #19

The only advantage local retail stores have is immediacy. You can buy it as fast as you can drive there (and park/find it in the store/wait in line). Amazon has almost every other advantage. Ive come to find shopping local retail stores more and more frustrating. Shopping without reviews or videos, and having to flag down employees to help you locate items. It's really hard to beat online shopping with one day or two…

I just couldn't care less about reviews and those videos. It's just self-selection, doesn't usually tell me much. If I'm shopping for groceries, I don't need reviews, thanks. If I'm shopping for electronics, if it's a small purchase, I don't need reviews. If it's a bigger purchase, I will read specialty review sites, not what Tom the hipster or Joe Bob has to say. Ever read YouTube comments? That's basically what I think of user reviews from the general public. I don't tend to flag down employees at Target though. :)

Maybe this will put a small dent more in the profits, I don't know, but I don't think it's going to be revolution or anything.

Re: How Amazon’s ambitious new push for same-day delivery will destroy local retail

#54

Post by wheels »

Amazon has been doing this in parts of Germany since 2009. The results haven't been nearly as dramatic as the article predicts. As others have indicated, the limiting factor isn't so much speed of delivery as the inclination to physically inspect items before buying them. That said, Zappos, now a part of Amazon, has succeeded in doing that in one of the markets that tends the most towards such. Even so, there are still a lot of places to buy shoes.

Re: How Amazon’s ambitious new push for same-day delivery will destroy local retail

#55

Post by ddt »

aleyan wrote: post #48
ddt wrote: post #11

It'll destroy larger B&M stores but I doubt it'll fully outdo local specialty shops. What you'll see is a stratification between hyper specialty B&M that sell luxury items only a tiny subset of people want, but are willing to pay out the nose for, and places like Amazon filling the role of Target and Walmart, being the catch-all for everything else that most people need on a week-to-week or month-to-month basis. Whil…

As an Amazon Prime subscriber who bought mustache wax from their affiliates on two occasions, I have to report very disappointing shipping times. Living in NYC and ordering in the morning, I expect delivery the next day. Alas, my mustache wax came three days later. Part of blame has to be placed on Amazon's affiliates. If the merchandise is not in an Amazon warehouse, then what can Amazon do to speed up delivery? I f…

As a fellow mustache-haver, I feel your pain.

Re: How Amazon’s ambitious new push for same-day delivery will destroy local retail

#56

Post by dinkumthinkum »

Caerus wrote: post #38

> Amazon has long enjoyed an unbeatable price advantage over its physical rivals. When I buy a $1,000 laptop from Wal-Mart, the company is required to collect local sales tax from me, so I pay almost $1,100 at checkout. This is such an over blown argument. Sure, Amazon is ~7% (where I live) cheaper than traditional stores due to sales tax. But that $1000 Wal-Mart laptop has a $900 sticker price on Amazon, and most no…

But you're picking a fairly non-representative product for this issue. I doubt any of us are going to be buy a laptop from Walmart, looking at their stock, I don't think many other people are either. They have a couple but this is not their bread and butter (which actually is their bread and butter).

Re: How Amazon’s ambitious new push for same-day delivery will destroy local retail

#57

Post by ippisl »

ddt wrote: post #33
rflrob wrote: post #29

Earlier quoted context omitted.

There's certain classes of non-luxury stores that should survive OK. If I need to find a screw for my (insert doohickey here), I'll go to Ace hardware, where I can try out the different screws in their bins, then pick the one that works. The same logic applies to lots of other hardware store type items.

Absolutely, any product that you need to physically inspect before you buy seems like it'd survive.

Like shoes ? and clothes ? those are starting to move online using some interesting technologies[1][2] and there's no reason to believe that we won't find a way to help with buying other physical items.

[1] using the kinect to virtually measure clothes on your TV. [2] using a variable robot to show you how a specific garment would look on your specific measurements.

Re: How Amazon’s ambitious new push for same-day delivery will destroy local retail

#58

Post by dinkumthinkum »

ddt wrote: post #11

It'll destroy larger B&M stores but I doubt it'll fully outdo local specialty shops. What you'll see is a stratification between hyper specialty B&M that sell luxury items only a tiny subset of people want, but are willing to pay out the nose for, and places like Amazon filling the role of Target and Walmart, being the catch-all for everything else that most people need on a week-to-week or month-to-month basis. Whil…

For most people that think this is going to wipe out the B&M stores ... Have you guys been outside of Mountain View lately? I mean, this is just the most ridiculous thing; it's just nonsense. Has anyone here ever been to a Wal-mart? You think all those people are going to say "Nope, just buying next-day shipped products from Amazon now." It's just not serious.

Re: How Amazon’s ambitious new push for same-day delivery will destroy local retail

#59

Post by suresk »

Caerus wrote: post #38

> Amazon has long enjoyed an unbeatable price advantage over its physical rivals. When I buy a $1,000 laptop from Wal-Mart, the company is required to collect local sales tax from me, so I pay almost $1,100 at checkout. This is such an over blown argument. Sure, Amazon is ~7% (where I live) cheaper than traditional stores due to sales tax. But that $1000 Wal-Mart laptop has a $900 sticker price on Amazon, and most no…

Indeed, when you look at surveys that ask people why they prefer shopping online, things like "24/7 convenience", "saves time", and "better selection" usually end up ahead of "costs less money, even after shipping" and taxes are usually a small part of that.

The lack of sales tax hurts local tax entities far worse than it hurts Amazon's competitors.

Re: How Amazon’s ambitious new push for same-day delivery will destroy local retail

#60

Post by joe_the_user »

ddt wrote: post #11

It'll destroy larger B&M stores but I doubt it'll fully outdo local specialty shops. What you'll see is a stratification between hyper specialty B&M that sell luxury items only a tiny subset of people want, but are willing to pay out the nose for, and places like Amazon filling the role of Target and Walmart, being the catch-all for everything else that most people need on a week-to-week or month-to-month basis. Whil…

Yes,

Another part of retail is that different kinds of stores support each other. Anyone "making a shopping run" usually visits a number of stores, especially in the suburbs/exurbs where they are a distance away. The few stores people have to visit, the fewer "runs" they make and the more pressure they have to make do with stuff online. Just as much, when some of the stores in a retail complex go out of business, the complex suffers. The total number of complexes has to shrink and by the time that happens, some portion of the remainder is further disrupted.

Retail is in trouble. I'm in a major metropolitan area and it is very visible.

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