Friday, May 9, 2014

Distribution Dilemma: Same-Day Delivery of Online Purchases

Click now, wait and wait for purchases to be delivered. That's the old model of online purchasing. Online retailers have been trying to solve this distribution dilemma by changing "click and wait" to "click for same-day delivery." Just this week, Amazon and Google both debuted or expanded same-day delivery in major metro areas.
  • Amazon's same-day delivery option offers same-day delivery in 12 areas, Monday through Friday (although San Francisco has 7-day service). The company initiated same-day delivery four years ago, and has been slowly expanding ever since. Las Vegas, one of the original test areas, is no longer in the mix, however. Amazon Prime customers pay less than non-Prime members. And by not using FedEx and UPS, Amazon changes its cost equation, which may help its profitability.
  • Google's Shopping Express offers same-day delivery in several areas, including LA, SF, and Manhattan. Google's retail partners (national and local, like Costco, Photojojo, Walgreens, Office Depot) sell the merchandise and Google's delivery partners deliver, using Google-branded vans (see above). The result combines "shop local" with same-day delivery, addressing the last-mile problem.
What's next for same-day delivery?

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