Amazon 1-day delivery already sees shipments to the majority (72%) of US consumers, says a new report by RBC Capital Markets.
According to the research, Amazon delivers goods in one day to more than 95% US shoppers in 16 of the wealthiest and most populated states including Washington D.C.
“While store-level distribution is still the fastest way for a consumer to acquire a product, Amazon’s continued rollout of same-day and next-day delivery capabilities continues to reduce that historical competitive barrier and represents a growing risk to retailers who are too often fighting yesterday’s (2-day) delivery wars.”
– RBC Capital Markets
The study highlights the speed of Amazon’s strategy to cut their delivery time in half for US consumers. Amazon said that they will invest $800 million to improve their delivery promise in the second quarter of 2019, citing 20-year history in the logistics field as an asset and a springboard to change the face of retail in the US.
Is Amazon’s one-day delivery driving a retail standard?
Last week saw Amazon’s move forcing Walmart to respond with a possible introduction of one-day free shipping . Walmart are still offering free 2-day shipping on qualifying orders of $35 (£26) which means that for every Amazon move there is a wider ripple effect across the industry.
Amazon might be driving a new retail standard but one size fits all approach doesn’t work in this case. Leading marketplaces such as Etsy and Notonthehighstreet refuted the idea of an accelerated delivery option being their winning formula. The duo emphasised on the fact that the delivery speed and the nature of a product need to be considered before next-day delivery is offered to a customer.
What elements of your business are you taking into consideration when determining your delivery promise?