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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

#81

Post by eswangren »

AncientPC wrote: post #76
wheels wrote: post #54

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 sti…

I suspect this is a uniquely American thing. Similar to Dell's failed entrance into Asia, Americans are uniquely content with purchasing plenty of merchandise without ever physically examining the product.

Why wOuld I feel the need to inspect a book before buying it? I am working under the assumption that no pages will be missing. It's worked out fine thus far. You do realize that purchasing items over the Internet has been working well for some time now, right?

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

#82

Post by Caerus »

muhfuhkuh wrote: post #75
Caerus wrote: post #66

Earlier quoted context omitted.

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 it…

In almost no category that I've sampled has Walmart ever been the absolute rock-bottom cheapest compared to several places (Big Lots, Dollar General, local grocery chains, Amazon... even Target, believe it or not). People, however, can't go to Amazon to get infant formula, a car battery, ammunition, and a jar of pickles at 1AM and have it in hand immediately. Walmart used to be about "made in the USA", then it was "a…

True, there will always be a need for immediacy in shopping. However, on three of the four you listed (Not sure if I want to know why you need ammunition at 1 am...) Amazon carries them, and at a reasonable to very low price. Most of the time I know I'll need something a couple days before. Instead of "I'm out of coffee, better go to the store" it's "I'm running low on coffee, better order some and it will be here in two days". Personally, I find that to be more convenient most of the time.

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

#83

Post by eshvk »

ippisl wrote: post #57
ddt wrote: post #33

Earlier quoted context omitted.

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.

The Zappos (owned by Amazon) model is kind of interesting too. They actively encourage you to return shoes that you don't like for any arbitrary reason, thereby making it easier at least from the consumer's perspective of avoiding the situation where he/she would be stuck with a purchase that doesn't fit them or something.

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

#84

Post by einhverfr »

ck2 wrote: post #63

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 deliv…

I don't know about that. In Chelan, WA (population 3000, plus tourists, whole valley population maybe 10000 + tourists) 2 supermarkets, 3 if you count the fact that one of them has another location the next town over), prices aren't any higher than they are in Seattle, and both supermarkets have amazing deals occasionally.

I once bought a whole beef tenderloin for $5.99/lb during one of the specials. One supermarket has themed specials every 2-3 weeks during the summer and reasonable prices the rest of the time. They also really focus on meeting needs of everyone around, so you can find goat meat, intestines, tripe, cow feet, and shank for sale in their meat department, and the shank is about half the price that they originally quoted me when i requested it.

The fact is that if you are in a rural area, you already end up with lower housing prices and some other benefits. So I wouldn't be surprised if that compensates for the increased shipping efforts.

I am not saying I like the supermarkets. I wont do business with the local Safeway because of ways they have treated family members. However, I wouldn't say prices are higher.

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

#85

Post by sage_joch »

Gustomaximus wrote: post #39
ktr wrote: post #8

This is crazy - I ordered 3 things from Amazon today through Prime and started wondering if/when a day would come when you'd have same day delivery from Amazon and what it would look like. I figured it would happen someday, but thought the complexities would be too much to handle for a while. Looks like they're way ahead of me. This is why I love Amazon.

I think this will come into it's own with driverless car technology. Once we combine the current automated warehouses with automated delivery the timescale and costs will drop dramatically.

I think the implications of emerging technologies are greater than most people realize. Between driverless cars, voice-recognition systems, and the Internet, it doesn't seem far-fetched to imagine saying, "Computer: deliver one large pepperoni pizza and a Sprite", and having it appear on your doorstep within 15 minutes. All without human intervention.

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

#86

Post by dr_ »

"I have no idea how Amazon made any money on my order (the whole bill was less than $30) but several people on Twitter told me that they’ve experienced similarly delightful service."

Therein lies the problem. At some point there will have to be revenues to justify the company's valuation. I suppose their goal is to initially obliterate all competition in entirety and then have everyone purchase from Amazon. I'm doubtful this will work. Of late, there has been a trend towards experience stores - with manufacturers creating their own stores instead of distributing to retailers. Many luxury brands do this and even some non-luxe ones, such as Samsonite, have been getting into the game. There's some value added here, and it's something Amazon won't be able to directly compete with.

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

#87

Post by greghinch »

eswangren wrote: post #81
AncientPC wrote: post #76

Earlier quoted context omitted.

I suspect this is a uniquely American thing. Similar to Dell's failed entrance into Asia, Americans are uniquely content with purchasing plenty of merchandise without ever physically examining the product.

Why wOuld I feel the need to inspect a book before buying it? I am working under the assumption that no pages will be missing. It's worked out fine thus far. You do realize that purchasing items over the Internet has been working well for some time now, right?

You've obviously not tried purchasing things in a 3rd world market, such as in China

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

#90

Post by mseebach »

robryan wrote: post #77
wheels wrote: post #54

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 sti…

I expect to eventually see big retail outlets where there is only stock for trying things out. No buying at the store but you could complete your online order while at the store and have it same day/ next day.

There's no reason why this would be "big retail outlets" and not smaller boutiques. When you don't have to stock 5-15 pcs each of 30 flatscreen TVs, the local high-street enthusiast who actually knows stuff and can give you advice could see a renaissance. He doesn't even have to stock one of each, as "That one, but in 32 inches" is a viable order.
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