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ECT News Community   »   E-Commerce Times Talkback   »   Re: Amazon's Same-Day Delivery Will Shake Up Retail

Re: Amazon's Same-Day Delivery Will Shake Up Retail
Posted by: Theodore F. di Stefano 2013-01-17 09:34:08
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I recently went to a local Staples store to purchase a cartridge for my HP laser printer. The cost was about $80, including sales tax. While I was driving home, it suddenly dawned on me that I should have ordered the cartridge from Amazon at a much lower price. As soon as I arrived home, I searched the Amazon site for suitable alternatives to the costly cartridge that I had just purchased. Sure enough, I was able to buy two laser printer cartridges for a total of $16.

Re: Amazon's Same-Day Delivery Will Shake Up Retail
Posted by: Alternative 2013-02-23 10:52:14 In reply to: Theodore F. di Stefano
Yes but! Do we really need cheaper and cheaper prices from less companies like Amazon & Walmart so that we consume more for less and destroy any chances at a fair living wage, healthy local small businesses and a sustainable ecological way of living?

I don't think so. I think this is headed in the wrong direction.

We should rebel against large multinational corporations chasing the cheapest wages, the lowest prices and the most lax regulations so that they don't have to worry about polluting and let's not forget the easiest way to hide profits and not pay taxes.

What we need are small local Cooperative corporations whose focus is high employment to keep their communities healthy.

Re: Amazon's Same-Day Delivery Will Shake Up Retail
Posted by: megankrow 2013-03-11 10:55:08 In reply to: Alternative
why does it make a difference?
if a person can get something cheaper its money saved in his/ her pocket ,why am i concerned if someone else is making a living?

dont make no sense

charity begins at home!

Re: Amazon's Same-Day Delivery Will Shake Up Retail
Posted by: ecommguru 2013-01-17 10:31:27 In reply to: Theodore F. di Stefano
There are many ways that traditional retailers can develop a more level playing field (albeit not an edge), for one, push more manufacturers to Minimum Advertised Pricing for the brands they heavily compete on. This will keep pricing level as long as it is enforced. If they can successfully accomplish this on staple items and push in store promotions which most manufacturers with Minimum Advertised Pricing allow for traditional retailers over online this could provide incentive for higher in store conversions, assuming also the issue of sales tax collection is resolved for all.

Every retailer knows that a larger and larger percentage of their customers are using price comparison apps such as the Amazons app which allows for bar-code scanning. How many traditional retailers provide this to their customers?

Traditional retailers need to move away from order online for in store pickup and simply ship to the product to the customer through a distribution network that allows them the best cost of quick delivery. Regional distribution centers allow for cheap 1 to 2 day delivery via standard ground, customers that receive product next day for free or at a discounted rate as Amazon provides for the majority of their shipments will be just as excited as paying a premium for same day delivery.

Lastly, retailers typically do not build close enough relationships with direct manufacturers to ensure the best delivered cost of off brand or private label items. Retailers are in the business of bringing product to market, not having their hand in the manufacturing process so best price may not always be the case when a true cost of product is not known. Before we started our own product driven e-commerce business I had the opportunity to call on Wal-Mart as a sales person, and it is very evident that in its effort to provide the best price for its customers, they understood the importance of knowing net cost of manufacturing and bringing the product to market, hence their ability to provide low cost private label or off brand items which gave them the ability to both carry brand name items and compete against them in their own stores with essentially their own product.

Brick & mortar retailers have been slow to find synergies between their stores and retail presence, and I suspect we will see more and more of the category killers such as Best Buy, Petsmart, Office Max completely revamp or die, just look at book stores.

There are three main components. 1. & 2. It shouldn't cost the customer any more to receive the item at home as it does for them to drive to a store and delivery must be quick for staple items. 3. The cost for these items must be competitive and a store should have a lower priced private label or off brand product.

If you do not produce proprietary product, you simply carry the same goods as everyone else, and if pricing levels are of no concern, the winner is the company with the lowest price when it comes to e-commerce, the first search is who has it, the next search is who has it cheaper.....

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