Amazon Prime shipping move 'a serious wake up call to retailers'
Amazon is working on free one-day shipping as the default for Prime customers, instead of the free two-day option primarily offered today.
Chief Financial Officer Brian Olsavsky made the announcement during the e-commerce giant’s first quarter 2019 earnings call. “We’re already starting down this path,” he commented “We’ve expanded the number of zip codes eligible for one-day shipping.”
This will, however, take a “significant amount of time to achieve.” Amazon has been improving its shipping logistics over the past quarter, and will use the US Postal Service and other transportation partners for its latest initiative. The focus will initially be on North America.
“This move by Amazon is a serious wake up call to retailers. The household names we know and love in retail, both online and offline, have been relying on the loyalty of consumers for too long,” says Santosh Sahu, CEO at On the dot. “This new development drives already high pressures even higher for retailers looking to match Amazon’s commitment to convenience, underlined by its unrivalled delivery options for its customers.”
But all is not lost. High Street retailers’ physical footprints put them closer to their customers than online giants like Amazon. “Stores can become delivery fulfilment hubs, allowing them to quickly close a widening gap between them and their online rivals,” says Sahu.
“In the current climate, consumers are time-poor and convenience-driven. It’s very simple. Online or offline, shoppers will always opt for retailers who can do one thing: make it easy to buy, exchange and obtain products. Rapid and convenient delivery is a must.”
