Amazon Continues to Accelerate Delivery Time Standards

By Alex Batty, MHI Marketing Communications Coordinator |@mhi_alex

I recently ordered some things off of Amazon, as one does, and I have Prime (my student rate expires this month and I’m super sad about that). But what surprised me was the fact that most of my items (and I’m talking not small stuff, I ordered power tools) were eligible for same day delivery. And they did, in fact, arrive at around 6:30 that night.

Now, I was perfectly happy with my “free” two-day delivery. I thought that was pretty standard, and considering they have to ship stuff from regional DCs, I had no problem with two days. To be fair, I hold two days as the standard, and will order from Amazon for my free two-day shipping even if another site has it for a little cheaper, but free delivery is 5-7 business days. But the same day was a surprise and I’m trying to decide whether that is a premium service, as a way to incentivize Prime subscriptions, or if it will become the “standard” in the near future. Amazon seems to think so. Stephenie Landry, Amazon’s worldwide director of Prime Now, says “Ten years ago people thought two-day shipping seemed really fast. We think two-hour shipping and one-hour shipping will be the standard.”

Source: amazon.com

I was telling my parents about my same-day delivery, and they made the point that they will probably never have same day delivery. They live in a pretty isolated mountain valley, and there is not enough of a population source for most companies to build a DC. But here in Charlotte, it’s a big enough metropolitan area that there must be a DC pretty close. Close enough at least to get me items same-day.

Other things Amazon has been quietly rolling out are Amazon Lockers, which are like P.O. boxes and return centers rolled into one and posted strategically in cities to allow customers convenient pick up and drop off locations, and Prime Now, a 2-hour delivery service where you can shop from select Amazon items, local grocery stores, and restaurants and have it delivered to your home.

Amazon seems to be leading the way in accelerating delivery times, and many major traditionally brick-and-mortar retailers find themselves struggling to keep up. Many systems are moving toward omni-channel fulfillment in order to keep up with customer expectations. Large retailers are starting to offer shop online, pick up in store, and Walmart (the denizen of my cheap, cheap heart) offers a service to bring your order straight to your car – you don’t even have to go inside anymore. You get all the items you would normally pick up at the store, but don’t have to fight lines (or talk to other people) to get them. You just pop by on your way after work and they load it directly into your car.

Customers demand flexibility, and retailers, and supply chain, are trying to keep up. The industry is changing and we have to keep up, which is why we put out our Annual Industry Report. We talk to the industry and research trends and find the tools to help you move into the Next-Generation Supply Chain – the one that’s digital, on-demand, and always on. Because that’s what customers are demanding, and we have to do what we’ve always done: deliver.

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