Amazon Evolving Into a Parcel Delivery Company, Competing With FedEx and UPS?
A 2013 Boston Consulting Group (BCG) survey showed that only 9 percent of U.S. consumers cited same-day delivery as a top factor that would improve their online shopping experience, while 74 percent cited free delivery. Jonathan Kapplow, ShopRunner's chief marketing officer, said he's not surprised at the BCG findings. Same-day shipping, he said, "feels like a solution looking for a problem." By the way, it's noteworthy that Amazon just canceled its same-day delivery service in Las Vegas.
However, with Amazon pushing $5 to $10 same-day delivery options, same-day delivery WILL grow in consumer popularity and demand very quickly. Once consumers are used to something, they come to expect it. We're just not there yet on any macro level.
Rob Martinez is the CEO of Shipware LLC, a professional services firm that transforms businesses through intelligent distribution solutions and strategies. Rob has helped some of the world’s most recognizable brands reduce parcel shipping costs an average of 25 percent through contract negotiations, rate benchmarking, modal optimization, invoice audit and other savings vehicles. A cum laude graduate of UCLA, Rob has 20 years of transportation industry experience, including executive positions at DHL and Stamps.com, in addition to his work as an outside consultant since 2001.
