Amazon’s Prime Service to Take on Offline Retail Sector

Amazon

Amazon

Amazon.com, the online shopping giant, is all set to offer consumers added benefits which are not likely to be available in offline retail stores. The Amazon Prime service comes with free two day shipping facilities, video streaming and even an e-book lending library for just a mere $79 per year. The company has decided to focus on these three areas at the moment.

Advantages of Prime

Many consumers have apparently been drawn to the service, supposing it to offer more value for money. On Monday, a representative for the website stated that they are at present shipping a greater amount of items via the company’s two day shipping service from Amazon Prime instead of the free Super Saver Shipping offer. The latter service provides a slow shipping rate but with the benefit of having to pay no extra shipping charges, if the total price of an order exceeds $25.

Amazon Prime, however, is not a free service as consumers are required to pay $6.58 a month for the privilege. The service is most likely to benefit regular customers. Amazon too stands to profit from the service as consumers who get their stuff more quickly due to two day shipping will most probably buy more.

The website has not specified the actual number of people who use Amazon Prime. This practice has drawn a lot of criticism in the past. Amazon along with its investors both expect the program to meet with success as it considerably reduces the one key disadvantage the company has – the inability of consumers to get the product right away. The closer Amazon succeeds in replicating that experience, the more it will be successful in removing the dividing lines between online and offline.

The company seems to be in the midst of experimenting with the concept of same day delivery in order to blur the line between traditional brick and mortar shops and online stores. On the other hand, one of the website’s most important affiliates seems to be diversifying its bets that the system of getting the stuff bought online just a few hours after placing the order will become more popular.

Resource Support

Monday was also the day when British startup firm Shutl made an announcement that private equity unit of international logistics company, UPS, has chipped in more than $2 million to help launch the same day courier service in the United States by next year. Shutl’s website contains all the necessary details regarding which city in the US will be the first to avail this service. Online auction site is also in the process of testing the same day delivery service.

If the process of same day delivery does indeed start to work, the wall that separates retail shopping and online shopping will start to blur. Amazon needs to introduce a greater number of distribution points closer to where consumers live if the same day service has to work.

The thorough efficiency of logistics teams in recent times makes the process of buying and delivery a lot simpler. If Amazon Prime succeeds in implementing the same day delivery system, shoppers are likely to become more accustomed to the point and click shopping model.

Carrie Ann
Carrie Ann is Editor-in-Chief at Industry Leaders Magazine, based in Las Vegas. Carrie covers technology, trends, marketing, brands, productivity, and leadership. When she isn’t writing she prefers reading. She loves reading books and articles on business, economics, corporate law, luxury products, artificial intelligence, and latest technology. She’s keen on political discussions and shares an undying passion for gadgets. Follow Carrie Ann on Twitter, Facebook

Recent Posts

United to recall furloughed employees as travel recovers

United to recall furloughed employees as travel recovers

The fading of the pandemic and the rollout of vaccines has brought in some good cheer for the floundering air travel industry. More countries have opened up for business and are al
14 hours ago
UK’s Sanne agrees to consider Cinven bid

UK’s Sanne agrees to consider Cinven bid

Sanne, a UK fund administration business that provides alternative asset and corporate services, has agreed to hold talks with private equity firm Cinven over a potential £1.4bn t
1 day ago
Global stocks rise as investors ignore inflations indicators

Global stocks rise as investors ignore inflations indicators

Global stocks rose to an all-time high, with investor showing confidence in a strong economic recovery from coronavirus and the vaccine effect, but the market is still a bit cautio
1 day ago
UK watchdog whacks Amazon with probe for unfair data collection practices

UK watchdog whacks Amazon with probe for unfair data collection practices

The Competition and Markets Authority will focus on whether Amazon, Inc. favors merchants that use its delivery services.
4 days ago
Altice buys 12 percent stake in BT worth £2 billion

Altice buys 12 percent stake in BT worth £2 billion

Altice said it did not intend to make a bid for the British Telecoms company, though the takeover code also does not allow it to make an unsolicited buyout offer for six months wit
4 days ago
G7 countries agree on broad principles of minimum corporate tax deal

G7 countries agree on broad principles of minimum corporate tax deal

The world’s richest nations (G7) reached a landmark accord setting a global minimum corporate tax rate for multinationals. Would it be effective in tackling tax evasion and avoid
4 days ago