Herb Sorensen, Ph.D.

Amazon's Express Goes From Overnight to Same Day

October 16, 2009

FROM RETAILWIRE:
When most consumers think about getting an express delivery from a website, it's overnight. Amazon.com is in the process of changing that with the launch of its same-day "Local Express Delivery" service. What will same-day delivery do for the consumer perception of Amazon.com?      [more...]

There are three fundamental components to the retail process:

1. Getting a meeting of the minds, i.e., closing the sale.
2. Delivering: transferring from the seller to the buyer.
3. Payment: movement of cash or the consideration.

Amazon has willy-nilly mastered the most important piece, number 1, closing the sale. Number 3 is a sophisticated no-brainer in this age of electronic banking. This leaves delivery as their final barrier to dominating retail, making Walmart look like pikers.

If Walmart ever figures out what Amazon knows about selling, Katie bar the door. Don't overlook that Walmart is using DSIQ for their Smart Network assessment AND that the top technical talent at DSIQ moved from Amazon to DSIQ. However, that doesn't mean Walmart recognizes the similarity of SELLING (#1 above) online and offline (in the store.) Peter Fader and Wendy Moe have a chapter on this in my book, Inside the Mind of the Shopper.

Link all this with social media and you have a very potent brew.

(BTW, the "Quick trip" will always be the bastion of the offline, bricks-and-mortar retailer. At least until IBM's teleportation project is handling delivery. :)