Ecommerce has created a monster: it's customers' expectations. People can purchase online with almost thoughtless ease (and you know telepathic ordering is coming). So they really dont want to hear all your jargony supply-chain dependent excuses for why they can't have what they want right now - without a signature required and your assumption of the liability should anything go wrong.
So the big online retailers are considering innovative alternatives, like crowd-sourced delivery (Amazon), drive-through pick-up (Walmart) or contracting with retailers (Uber). No one model has emerged yet - and lots of big customers like Apple have considered but then rejected Uber (yes, reputation matters). It is fitting, somehow, that as the last intangible link in the electronic relationship between seller and buyer, those unreliable humans seem so annoyingly indispensable. JL
Laura Heller reports in Forbes:
Amazon shipping costs grew 31% last year. Apple, too, has been exploring new forms of delivery including Uber.
Amazon is considering a crowd-sourced delivery solution that uses individuals to deliver packages and existing retailers to store them, all powered by a mobile app.
The initiative, referenced internally as On My Way, could allow Amazon to gain control over shipping costs that grew 31% last year, according to the Wall Street Journal.
A year ago I would have said this sounded like a disaster in the making. A lot could go wrong tasking strangers with shipments, but ride sharing has taken off in many cities thanks to Uber and Lyft, and home sharing is hot as Airbnb continues to grow.
Of course a lot of things go wrong using current delivery options. Just this month we’ve had a package soaked through as it sat in the rain when the driver left it on the front steps and another stolen after the very same thing.
Even Amazon’s Prime Prime offers no guarantee. Members are promised two-day delivery with their $99 annual fee, but not all products are available and in my experience, several have failed to deliver on time. One seller even outsourced a single item in the order to a third party in Europe, resulting in a three week delivery window and $15 surcharge on a $2o product.
Apple AAPL -0.23%, too, has been exploring new forms of delivery including Uber. Apple reportedly rejected using Uber for several reasons including surge pricing and an inability to insure items over $1,000 for deliveries. Insurance will play less of a role for Amazon, which often ships smaller items and offers white glove service for bigger ticket goods including electronics.
Retailers of all sorts are exploring alternative delivery options. Just this week another grocer, Smart & Final Smart & Final, partnered with Instacart to make local deliveries. And in May, Costco and Kroger did the same.There’s also a growing trend of retailers using stores as fulfillment centers. Walmart has reportedly considered using a third party such as Uber to help with same-day deliveries, but has instead turned its focus to perfecting rapid fulfillment and in-store pickup at its discount stores, Neighborhood Markets and Sam’s Clubs.Holiday deliveries have been a minefield for retailers, Amazon included. We’re mere months away from that season and getting some form of advanced delivery option in place as a test is critical. It’s been two years since UPS and FedEx ruined Christmas for many families, but retailers have not forgotten that sting.
One thing is for certain: Retailers must reduce shipping costs and offer more customer friendly delivery options. Crowd-sourced options may be an answer for some.
0 comments:
Post a Comment