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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

#111

Post by mthoms »

rdl wrote: post #102
mthoms wrote: post #99

This is the trojan horse. Once Amazon has a large presence in each major centre, the next logical step for them is use some of their massive space as a showroom (think Ikea but on a much larger scale). [Edit: To clarify, the showroom and warehouse would be in the same complex but separated. Shoppers + heavy merchandise + fast moving robots is a recipe for disaster.] Then they can satisfy both the "I want to see it be…

Interesting idea, but I seriously doubt Amazon would do this with their normal warehouses -- maybe paying sales tax and thus being able to have presence in major cities would let them set up dedicated showrooms for certain kinds of high-lifetime-margin products, like Kindles and maybe a Kindle Phone, though. Big warehouses are highly automated (especially Amazon's), essentially unsafe for untrained people (forklifts,…

To clarify: the warehouse and the showroom would be separate but contained in the same complex (much like Ikea). Each person has an app on their phone to record their purchases while browsing the showroom. When the shopper is done some items are retrieved robotically for them to pickup while some items (or all items - it's up to the buyer) are delivered later in the day.

I don't believe the robot technology is quite yet up to this. But in 5-10 years it should be.

This setup would feature primarily first party products but it would also be possible for third party products to be on display in the showroom (to be delivered later from a different location).

I agree that Apple-sized showrooms with mid to high-end first party items would be the logical first step.

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

#112

Post by [deleted] »

fsckin wrote: post #98

Amazon failed to collect/remit ~270M in sales tax in Texas and has owed millions for years. So what did the state of Texas do about it? They struck a deal to erase the 270M owed, as long as Amazon starts collecting sales tax starting 7/1, create 2000 jobs and invest 200M in Texas. They were likely already planning more infrastructure in Texas, but threatened to reverse course and pull out of the state entirely. The w…

[deleted]

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

#113

Post by Goronmon »

rdl wrote: post #102
mthoms wrote: post #99

This is the trojan horse. Once Amazon has a large presence in each major centre, the next logical step for them is use some of their massive space as a showroom (think Ikea but on a much larger scale). [Edit: To clarify, the showroom and warehouse would be in the same complex but separated. Shoppers + heavy merchandise + fast moving robots is a recipe for disaster.] Then they can satisfy both the "I want to see it be…

Interesting idea, but I seriously doubt Amazon would do this with their normal warehouses -- maybe paying sales tax and thus being able to have presence in major cities would let them set up dedicated showrooms for certain kinds of high-lifetime-margin products, like Kindles and maybe a Kindle Phone, though. Big warehouses are highly automated (especially Amazon's), essentially unsafe for untrained people (forklifts,…

If Amazon can deliver in one-day, why even worry about stock at these showrooms. Find something you like, order it, and it's delivered to your door the next day.

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

#114

Post by adestefan »

jaggederest wrote: post #49
PotatoEngineer wrote: post #24

Earlier quoted context omitted.

It depends on how well I know the item. If it's a commodity where I've bought exactly the same thing before (Charmin Extra-Strong Toilet Paper), then price rules all. If it's a new item that I'm not sure what I need about it (chef knife, bar stool, etc.), then seeing the item in person helps determine which item I need.

I'm not sure if you've used Amazon's return system before, but it's absolutely immaculate. In my opinion, this is more an issue of perception than reality - in many ways it's easier to return things to Amazon than to your local store.

Except for the times they charge you $8 for return shipping on a $5 item.

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

#115

Post by diffeomorph »

arjunnarayan wrote: post #97
cglee wrote: post #94

Earlier quoted context omitted.

When Zappos first came out I thought they'd tank. I purchase new basketball/running shoes every 6months, and never ever make a new purchase without trying it on. Playing basketball or running with an even slightly uncomfortable shoe can lead to blistering, back problems, ankle sprains, etc. But my gf at the time thought it was brilliant. What I learned was that a lot of women's shoes are purchased based on anything e…

Yes. The build quality of women's shoes is astoundingly bad. Sometimes I look at them and they literally feel like glued on piece of leather, pretty on the outside, and nothing more. It's interesting how two different markets have developed (men's shoes and women's shoes) that have such different parameters. Men's shoes have outstanding build quality --- to the point where a good pair of quality shoes gets resoled mu…

This isn't just true for women's shoes, but women's clothing in general. I don't understand the reasons, but men's clothing tends to be made with less design and more durability.

A fashioner designer once told me he made the men's clothing first, then crafted the women's clothing out of its leftovers + some embellishments.

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

#116

Post by groby_b »

arjunnarayan wrote: post #97
cglee wrote: post #94

Earlier quoted context omitted.

When Zappos first came out I thought they'd tank. I purchase new basketball/running shoes every 6months, and never ever make a new purchase without trying it on. Playing basketball or running with an even slightly uncomfortable shoe can lead to blistering, back problems, ankle sprains, etc. But my gf at the time thought it was brilliant. What I learned was that a lot of women's shoes are purchased based on anything e…

Yes. The build quality of women's shoes is astoundingly bad. Sometimes I look at them and they literally feel like glued on piece of leather, pretty on the outside, and nothing more. It's interesting how two different markets have developed (men's shoes and women's shoes) that have such different parameters. Men's shoes have outstanding build quality --- to the point where a good pair of quality shoes gets resoled mu…

Yes. The good ones get resoled, just as with men's shoes.

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

#117

Post by vaksel »

suresk wrote: post #59
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.

not having to drive to the store is huge

on Amazon you just search, compare, read reviews and click buy.

with brick and mortar stores, you have to drive to the store, park, then roam the store to find what you are looking for, then hope that they have it in stock before you buy, then drive back home. Even a small purchase ends up costing you an hour of your time.

and for large purchases almost always you have to wait 20-30 for the store associate to bring out what you want to buy...and you have to deal with a sales pitch for an extended warranty

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

#118

Post by dharbin »

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.

And the store makes money off of amazon affiliate links?

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

#119

Post by robryan »

dharbin wrote: post #118
robryan wrote: post #77

Earlier quoted context omitted.

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.

And the store makes money off of amazon affiliate links?

Makes more sense for Amazon to set them up themselves. To an extent this is what Apple stores are, although they have a limited range and stock for standard configs.

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

#120

Post by dr42 »

dinkumthinkum wrote: post #58
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.

Never been to Walmart, no plans to either, why would I want to. I plan my purchases a few days in advance, know what I want and like that amazon makes it show up at my desk a couple of days later. Haven't shopped in a regular retailer for years. Except groceries, which I buy fresh every day.
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