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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

#61

Post by pyoung »

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…

I think the big advantage of amazon's tax-exemption isn't necessarily competition from physical retailer's, but rather from the online presence of those same physical retailer's. For example, I was checking out target's website the other day. They were offering some online only prices on things, I loaded an item into the cart, but at checkout, when the tax and shipping was added, I backed off because it was too expensive. On amazon, due to the no-tax and (usually) no shipping charges, I probably would have made that impulse buy.

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

#63

Post by ck2 »

What this is going to do is punish people in non-metro areas.

The way that happens is the same way supermarkets work. In very competitive areas, cut rate prices, coupons and promos like doubling, etc. are offered very liberally. To make up for that profit loss, they pump up the prices and cut out promotions in areas where there is little to no competition.

In areas with a walmart and target and now amazon local delivery, prices are going to be crazy good.

Everyone else will suffer as they supplement the profit-loss.

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

#64

Post by InclinedPlane »

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…

I live in the same county as Amazon's HQ, I pay full sales tax on everything there, it hasn't changed my shopping habits one bit, amazon is just such a better deal most of the time.

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

#65

Post by tomfakes »

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?

The package I had delivered today came via Amazon Fresh - the grocery delivery service they are testing in the Seattle area. It looks like they're also using it for non-Fresh items too for small, commodity items like CDs

This is Amazon owning the entire process from order until the item is in my hand.

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

#66

Post by Caerus »

dinkumthinkum wrote: post #56
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).

I only picked that because it was the example in the article. Looking at my recent Amazon purchases:

Amazon: Oxo Coasters $9.99 for 8 Walmart: Comparable set, Silicon Coasters $30 for 6

Amazon: DVD Rack $29.99 Walmart: Comparable model from same company, $39.00

Amazon: American Crew Pomade, $21.49 for 2 Walmart: $16.98 for 1

Amazon: 13 Watt CFL, $15.98 for 8 Walmart: Same model, $16.88 for 4

Those were the first 4 items I tried to compare.

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

#67

Post by jusben1369 »

Remember when home videos were going to obliterate movie cinemas? Who would go out when they can watch a movie on their couch?! For a while too things dipped. Then people realized there was a social element to going to the movies that made it a compelling experience. Add to that iMax and 3D etc. Heck, who would bother going to an Apple store when you can buy everything online!

Amazon is to shopping what McDonalds is to food. We all know what happens when you have McDonalds every day.

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

#68

Post by anusinha »

tomfakes wrote: post #4

I bought 2 things on Amazon this week, both with free 2 day shipping with Prime Item 1 spent 13 hours on a UPS truck driving around my city and was delivered about 7pm in the evening 2 days after ordering. Item 2 was delivered 14 hours after purchasing by Amazon Fresh at 9am. For the same price of shipping, which service would you rather have? EDIT To Add: The delivery guy for the 14 hour item works for Amazon - the…

UPS could also benefit greatly if they play their bargaining game right and form a good partnership. Breaking into shipping is difficult, even for a company as large as Amazon.

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

#69

Post by ippisl »

Scene_Cast2 wrote: post #42

There are a few fundamental, hard problems : energy and transportation. Amazon is trying to solve a subset of the latter here. However, I like to see/feel some things in person before buying. I often go through lot of items before finding "the one". Examples: food, pens, shoes. It would revolutionize the industry if Amazon could solve that. Until then, it's just a really large online store. Also - USA isn't the world…

I think amazon is concentrating on the clear and really hard pieces of eCommerce: warehouses everywhere, robotics, pack stations and leaves the fuzzy and less hard pieces to start-ups.

So now for example there are many start-ups working on the clothes and shoes fitting problem. In the future when the solution will be found , amazon would buy them , or just use their eCommerce muscle to force them into good terms or just copy them if possible.

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

#70

Post by sebastianavina »

InclinedPlane wrote: post #64
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…

I live in the same county as Amazon's HQ, I pay full sales tax on everything there, it hasn't changed my shopping habits one bit, amazon is just such a better deal most of the time.

so, this means we are heading to a walmart vs amazon war? shit just got real.
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