Amazon Prime expands same-day delivery to select retail stores across US
Amazon is adding a small number of bricks and mortar retail brands to its same-day delivery offering for Prime members.
This is kicking off with apparel firms PacSun, Diesel and Superdry, as well as vitamin retailer GNC, in 10 cities across the US.
The service is free for Prime members when they spend $25 or more, or $2.99 if they spend less than $25.
Some of the participating retailers also give shoppers the option to order items online and pick them up at the store.
Additional retailers signing up in upcoming months include Sur La Table and 100% Pure.
“Amazon understands that this entire process is inefficient and costly”
Prime members in eligible ZIP codes visit the Amazon app or Amazon.com, browse the curated selection from retail stores in their area, and select same-day delivery.
The e-commerce giant sends the order to the store, an employee fulfils it from inventory in the store, and an Amazon delivery partner picks up the order from said location and delivers it to customers.
In a LinkedIn post, Brittain Ladd, a supply chain consultant and former Amazon executive, said: “Amazon understands that this entire process is inefficient and costly.”
“This is why it will eventually convince retailers to place their best selling inventory into its automated micro-fulfilment centres (MFC). “
Amazon, Ladd notes, has plans to build hundreds if not 1,000 or more MFCs "so that customers can be served at the point of need."
Instead of having an associate at a retail store fulfill an order, and wait for a driver to show up, it will leverage its network of automated MFCs to fulfil products in minutes from dozens of categories, including everyday essentials, groceries, beauty, pets, toys, electronics, and apparel.
Ladd concludes: “Amazon is going to disintermediate retail stores with MFCs because it's a better model.”
“Note to Target: you will eventually switch to the same model. Your "mixing centres," a fancy way of saying cross docks, aren't enough. Good try, however.”
“Retailers are slowly learning that it is better to partner with Amazon than compete with them.”
