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

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

#181

Post by [deleted] » Thu, Jul 12, 2012, 6:20 AM UTC

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.

[deleted]

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

#182

Post by hef19898 » Thu, Jul 12, 2012, 6:25 AM UTC

The biggest challenge I see for amazon to come is, besides competition and makets and all that their ability to handle their whole supply chain. Amazon already proved that in terms of warehousing and distribution they are really ggod. but if there is one thing that comes with an ever increasing number of arehouses, especially if you want same-day delivery, is a ever increasing inventory level, in both number of items and value.

So from the outside one cornerstone of a strategy like this would be inventory management at at least regional if not even warehouse level. It's do-able, no question, but difficult. An advantage amazon has here is a huge history of point-of-sales data for most important regions they are operating in, no matter if there actualy is a amzon warehouse or not. And if they don't have (enough) point of sales data, well then it's to early to offer same-day service and all that.

All amazon has to do now is to keep operations up to the task... :-)

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

#183

Post by arjn » Thu, Jul 12, 2012, 6:25 AM UTC

My opinion is that this may not be the end of local retail. I would still prefer to shop at my local grocers and farmers market on the weekend. Sometimes shopping is more than just shopping, its also an outing with family.

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

#184

Post by zeroonetwothree » Thu, Jul 12, 2012, 6:27 AM UTC

Workplaces should be an easy place to get same day delivery. At a large office you probably have 100+ Amazon orders each day that conveniently get delivered by the company's staff. Amazon could have their own truck just drive straight to the office building without getting UPS involved at all.

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

#185

Post by sureshv » Thu, Jul 12, 2012, 6:34 AM UTC

notatoad wrote: post #147

dr_ wrote: post #86

"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 doubt…

I think you might be underestimating amazon's position. They already have massive revenues, and better mindshare than most of the brands they sell. They aren't some new startup, they bring in millions of dollars a day and are historically proven to be a successful company. Your post would make sense if amazon were a year old. They aren't. They've been doing this for a long time now and are very very good at it.

Q1 2012 Amazon had $13B in revenue and basically broke even, Costco had $23B in revenue, and Walmart has $113B. Where are you getting your financials from?

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

#186

Post by zoul » Thu, Jul 12, 2012, 6:37 AM UTC

msutherl wrote: post #176

CitizenKane wrote: post #171

This is already happening in China. Because of the nature of shipping companies here it's not unusual to buy a product (typically off of http://taobao.com ) and get it later that day or the next day. Many of these businesses are based in Shanghai and if you live there delivery happens nearly instantly. One online shop, http://cheers-in.com/ delivers cold beer in Shanghai in 1 - 2 hours from an order. Stuff like this…

Great for consumers like us, but terrible for all of the people who work ridiculous hours under constant stress on warehouse floors or do deliveries day in and day out. I try to buy from brick & mortar shops purely because running a shop is a job that has a shred of dignity left in it.

A nice article about the conditions in one of such warehouses:

http://www.motherjones.com/politics/2012/02/mac-mcclelland-f...

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

#187

Post by stephen272 » Thu, Jul 12, 2012, 6:44 AM UTC

First the internet revolutionized music and eliminated record stores Then it revolutionized videos and took down video stores It didn't stop there, and moved on to bookstores and wiped them out. And now its taking out brick and mortar stores in general. Honestly, I LOVE IT! The internet is so great. Anything that gets stuff in my hand faster or easier is great in my eyes.

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

#188

Post by arjunnarayan » Thu, Jul 12, 2012, 6:47 AM UTC

zoul wrote: post #186

msutherl wrote: post #176

Earlier quoted context omitted.

Great for consumers like us, but terrible for all of the people who work ridiculous hours under constant stress on warehouse floors or do deliveries day in and day out. I try to buy from brick & mortar shops purely because running a shop is a job that has a shred of dignity left in it.

A nice article about the conditions in one of such warehouses: http://www.motherjones.com/politics/2012/02/mac-mcclelland-f...

Sounds like some people need to unionize.

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

#189

Post by rickmb » Thu, Jul 12, 2012, 6:52 AM UTC

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 it's partially in American thing. In most European cities, the shops are around the corner. There's little effort involved, so Amazon doesn't sufficiently offset the advantages of instant gratification and being able to physically see stuff to make such a dramatic impact. Also, the different European attitude towards regulation has resulted in many cities actively protecting the kind of independent stores that make local shopping different from anonymous shopping malls full of the same franchises.

There are plenty of areas in which brick-and-mortar shops will take a hit from online competitors, but I suspect the impact in Europe will be considerably smaller than in the land of strip malls and Wal-Marts, where commercial efficiency has already trumped the "user experience", and Amazon is simply a better option with few disadvantages.

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

#190

Post by dinkumthinkum » Thu, Jul 12, 2012, 6:53 AM UTC

dr42 wrote: post #120

dinkumthinkum wrote: post #58

Earlier quoted context omitted.

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.

OK, so what? I don't really understand this response. You're a perfect person. The height of physical fitness, nutrtious/organic eating habits, superior mental acuity, don't have any need for "The Man" or Big Box retailers, have ever seen a television, much less ever seen a "cable program," etc.

Whatever. But billion dollar retail industries are not built on great folks like you. They are built on probably what you'd consider the "Great Un-washed." :)

B-school 101 stuff. If we understand how the world really is, we can make more successful businesses because we will understand the market how customers think. We can't let our personal perfection cloud our judgement about the world as it is. :)