Amazon Effect?
12-08-2018, 08:08 AM
#11
Gets Weekends Off
Joined APC: Mar 2014
Posts: 139
One such “Amazon Effect” that isn’t discussed as much is the fact that Amazon has helped to “normalize” the very idea of on-line shopping. I can still remember when buying something on-line was seen as “risky” behavior - now it is part of everyday life.
What this means is that, while Amazon is certainly the behemoth in the room, virtually every other retailer in the world is now seeing enormous gains in their on-line sales. CNBC recently reported that Walmart and Target have seen 43% and 49% growth respectively in their online sales this year - outpacing the growth of Amazon. Countless other smaller retailers are now participating in the online sales market. It seems rather doubtful that many of these other retailers would want to use a competitor (Amazon) for their shipping. Certainly none of these other retailers have any interest in operating their own airline and will thus rely on FedEx/UPS/USPS, etc for shipping.
The bottom line is that on-line shopping across the board has increased dramatically and will likely continue to do so - providing ample growth for all shippers. There will likely be plenty of room for a third shipping option while still seeing growth across the board for everyone involved - at least until the robots replace us all. : )
What this means is that, while Amazon is certainly the behemoth in the room, virtually every other retailer in the world is now seeing enormous gains in their on-line sales. CNBC recently reported that Walmart and Target have seen 43% and 49% growth respectively in their online sales this year - outpacing the growth of Amazon. Countless other smaller retailers are now participating in the online sales market. It seems rather doubtful that many of these other retailers would want to use a competitor (Amazon) for their shipping. Certainly none of these other retailers have any interest in operating their own airline and will thus rely on FedEx/UPS/USPS, etc for shipping.
The bottom line is that on-line shopping across the board has increased dramatically and will likely continue to do so - providing ample growth for all shippers. There will likely be plenty of room for a third shipping option while still seeing growth across the board for everyone involved - at least until the robots replace us all. : )
12-08-2018, 02:24 PM
#12
Gets Weekends Off
Joined APC: Nov 2017
Posts: 509
Originally Posted by Otterbox
I’d be more worried about the amazon effect for FedEx/UPS if they could actually deliver packages on time consistently. The times I’ve tried to overnight ship something with them, it’s arrived at the same time as a regular 2 day shipping is supposed to. Often times Amazon 2 day shipping takes 3-4 days where I live. Zero recourse when products arrive late other than having to print out a Label and drive to UPS to ship the product back.
The only nice thing about amazon shipping is that it’s free with a prime membership. I find their lack of consistency annoying at the free price point. I’d be irate about it if I actually needed them to deliver on time and I paid for it. If anything Amazon late delivery returns will continue to provide a revenue stream to UPS.
The only nice thing about amazon shipping is that it’s free with a prime membership. I find their lack of consistency annoying at the free price point. I’d be irate about it if I actually needed them to deliver on time and I paid for it. If anything Amazon late delivery returns will continue to provide a revenue stream to UPS.
If you contact Amazon about the late arrivals, they will refund the extra cost for overnight shipping and extend your prime membership by one month, for each late shipment. Can only get 12 extensions, for each year of prime purchased (24months, for the price of 12). Same applies for the free 2 day shipping that arrives late.
12-09-2018, 04:26 PM
#13
China Visa Applicant
Joined APC: Oct 2006
Position: Midfield downwind
Posts: 1,919
Originally Posted by Tony Clifton
One such “Amazon Effect” that isn’t discussed as much is the fact that Amazon has helped to “normalize” the very idea of on-line shopping. I can still remember when buying something on-line was seen as “risky” behavior - now it is part of everyday life.
Yup, in the exact same way that Brown and Purple normalized the nationwide overnight delivery that those consumers mostly take for granted now.
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