Amazon vs. Google in same-day delivery showdown
This week might as well have been named same-day delivery service week. First, Amazon.com announced that it was expanding same-day deliveries to six new metropolitan areas. It didn’t take long for news to break that Barnes & Noble was teaming up with Google to offer same-day delivery of books in three cities where Amazon also offers that option.
The six new Amazon markets are Baltimore, Dallas, Indianapolis, New York metro, Philadelphia and Washington, D.C. The e-tailer already offers same-day delivery in Los Angeles, Phoenix, San Francisco and Seattle. Amazon offers a wide variety of items as part of the service including books, health & beauty care, household cleaning products, movies and video games.
Customers who belong to Amazon Prime pay a flat rate of $5.99 for same-day shipments. Non-members pay $9.98 per shipment plus 99 cents per item. Ordering deadlines vary depending on location: Chicago – 7:45 a.m.; Dallas, Indianapolis, L.A., New York, Philadelphia, Phoenix and San Francisco – 12:15 p.m.; Seattle – 12:45 p.m.; and Baltimore, Boston and Washington, D.C. – 1:00 p.m.
Michael Huseby, Barnes & Noble’s CEO, told The New York Times the chain’s test of same-day delivery as part of Google Shopping Express is "our attempt to link the digital and physical."
According to the Times, Barnes & Noble orders placed through Google are not processed on the chain’s site. A person at designated stores will process the Google orders for books, games, magazines, toys and other products it stocks and pass them off to a courier for delivery.
Google, according to a Re/code report, has $500 million budgeted to expand its same-day service across the country. The tech giant has expanded the service as a logical extension of its search capabilities.
"We have been displaying to shoppers information about locally available listings for five years," Tom Fallows, head of Google Shopping Express, told Re/code. "And throughout that time shoppers had really interesting feedback: ‘Thanks, Google, but now you’re not helping me do anything about getting that product today.’"
- Same-Day Delivery Rates – Amazon.com
- Same-Day Delivery Ordering Deadlines – Amazon.com
- Amazon expands its same-day delivery service – Fortune
- Old Frenemies Google and Barnes & Noble Unite to Fight Amazon – Wired
- Google and Barnes & Noble Unite to Take On Amazon – The New York Times (tiered sub.)
- Inside Google’s Big Plan to Race Amazon to Your Door – Re/code
What are the biggest reasons more consumers are not ordering products for same-day delivery from Amazon, Google and others? What will it take for retailers to address these objections?