In the digital age, customer-centric solutions are becoming more feasible and more economical than ever before.
Technology has made it easier to give consumer exactly what they want. Not only that, but it is possible to give them what they want in the way they want – even if that means taking the product or service to them.
Delivery services have been around in some form for decades, but things are really starting to get interesting now that industry juggernauts like Amazon have gotten involved.
After mastering e-commerce and changing the way people shop online, Amazon has become one of the most trusted names for U.S. consumers. They’ve changed the game for customer service with Amazon Prime, giving customers access to discounted shipping and low-priced media in the form of TV shows, movies, and books.
Now they’re taking the next step, and it could be one that gives them end-to-end control over the e-commerce journey. Their new delivery services, called Shipping with Amazon (SWA), will compete with delivery industry mainstays UPS and FedEx.
The service is expected to be tested in Los Angeles in the near future. After data is gathered and feedback is received, the service could spread to other U.S. cities throughout the course of the year.
What sets the service apart from other brokerage-based delivery options is that Amazon will send drivers directly to pick up parcels. This means drivers could show up to retailers and warehouses, get the goods they need, then take them straight to the customer’s location.
What may help Amazon more than anything is their list of third-party vendors, which will allow them to undercut other delivery services on costs.
While Amazon’s shares didn’t change much as a result of the news, UPS and FedEx saw their stocks decline 6.5 percent and 5 percent respectively.
Amazon’s move may seem like a major step in a new direction, but its actually more like continuing along a path they’ve been scouting for months now. They’ve already announced plans to enter into the logistics and shipping field, recently leasing both air and ocean vehicles.
The company recently pushed into new areas of business that could be greatly aided by delivery services. Their acquisition of grocery chain Whole Foods positions them as a viable option in the growing field of grocery delivery, something major food sellers like Walmart have already been experimenting with.
Amazon has even announced interest in a healthcare venture, joining up with the likes of JPMorgan and Berkshire Hathaway for the landmark endeavor. Delivery service could come in handy with this aspect of their business as well.
Amazon has not only become a household name for their breakthroughs in the field of online shopping, but for their continued expansion in the market and their mission to become a holistic resource for customers.
With a company like Amazon in the delivery market, there could be a lot more options on the way for consumers in the near future.