Beacon Transcript

Information which Matters to You

Wednesday, January 20, 2021
Log in
  • National News
  • National News
  • Business
  • Business
  • Technology
  • Technology
  • Health
  • Health
  • Science
  • Science
  • About Us
    • Contact Us
    • Authors & Contributors
    • Privacy Policy GDPR
  • About Us
    • Contact Us
    • Authors & Contributors
    • Privacy Policy GDPR

Recent Articles

Ancient Babylonian Clay Tablet Holds the First Trigonometric Table

Ancient Babylonian Clay Tablet Holds the First Trigonometric Table

August 26, 2017 By Clayton Meason

The CDC Draws Attention To The Spike In Cyclosporiasis Cases

The CDC Draws Attention To The Spike In Cyclosporiasis Cases

August 11, 2017 By Troy G. Bennett

Travis Kalanick Resigns from His Position as Uber’s CEO

Travis Kalanick Resigns from His Position as Uber’s CEO

June 22, 2017 By Troy G. Bennett

Amazon Refunds Parents Whose Children Made Purchases Without Permission

Amazon Refunds Parents Whose Children Made Purchases Without Permission

June 2, 2017 By Clayton Meason

McDonald’s Has Been Quietly Altering Its Vanilla Ice Cream Recipe

McDonald’s Has Been Quietly Altering Its Vanilla Ice Cream Recipe

May 21, 2017 By Jennifer Licata

Washington Post Will Be Expanding Its Newsroom

Washington Post Will Be Expanding Its Newsroom

December 28, 2016 By Troy G. Bennett

Amazon’s 2-Hour Delivery Service Could ‘Slaughter’ Traditional Stores

May 19, 2016 By Gary Wymore

Email, RSS Follow
'Amazon.com site'

Analysts agree that Amazon’s Prime Now Service could spell doom for many traditional retail stores.

BEACON TRANSCRIPT – Retail analysts believe that Amazon Prime Now service, the super-fast, ultra-cheap delivery service the e-commerce behemoth rolled out last year, will “slaughter” brick-and-mortar stores.

The delivery service can bring the items you picked from Amazon’s site to your doorstep in an hour for a $7.99 fee or two hours for free. The annual subscription to the service amounts to $99.

Amazon uses local Prime Now hubs to link distribution centers throughout vast areas. Hubs are smaller than warehouses and can easily handle ten of thousands of products in a much faster way.

Amazon’s network of hubs and warehouses can cover areas where only traditional retail stores had had an advantage. Lee Peterson VP of consulting firm WD Partners noted that if someone can deliver a product within an hour it is game over for brick and mortar chains.

But retailers do not plan to give up easily. Wall-Mart has recently rolled out ShippingPass, a two-day free delivery service for members who pay $49 per year. In response, Amazon.com unveiled a monthly Prime offer that is cheaper.

Chris Boring of the Boulevard Strategies consulting firm said that consumers hadn’t expected a two-hour delivery service to actually fulfill its promises, but with Amazon everyone must match it.

And free delivery is just another trick to boost on-site traffic just like stores sell some products below cost to attract customers. Plus, Amazon has a strategy of sacrificing profits to gain a larger market share in a shorter time.

But Boring believes that not all retailers are equally threatened by Amazon’s new service. The retailers that are more likely to lose their business are fashion and electronics retailers, bookstores, music stores, and those selling sporting goods and pet-related products.

Analysts think that the Internet will mostly affect the leisure goods sector while venues selling convenience goods including drugstores, grocery chains will be able to survive… for a while.

Analysts expect the least affected to be retailers that sell furniture and other large objects and companies that provide dining and entertainment. Small businesses that focus on customers should also be alright, analysts estimate.

Two major advantages of brick-and-mortar stores are the ability to offer “touch and feel.” and “instant gratification,” a comprehensive study had shown. But Amazon Prime Now service might have just solved the gratification part.

“And Amazon delivers anything. It’s a slaughter,”

Peterson added.

Image Source: Pixabay

Email, RSS Follow

Filed Under: Business Tagged With: Amazon, Amazon Prime Now, ShippingPass, Wall-mart

Recent Posts

  • Security Guard List As Suspect in 1974 Stanford University Chapel Slaying Kills Himself June 29, 2018
  • Texas Teens Arrested After Decomposing Body of Elderly Woman Found in Garage June 28, 2018
  • Montana Woman in Custody After Forcing Ex to Have Sex with Her June 27, 2018
  • Newly Released Audio Transcript Proves Monalisa Perez Objected to Deadly YouTube Prank June 26, 2018
  • Virginia Woman Shoots New Zealand Man Who Smashed Glass Door with Brick   June 26, 2018
  • Arizona Woman Lied About Kidnapping to Cover Boyfriend’s Slaying June 25, 2018
  • Brooklyn Man Arrested in Niagara Falls Allegedly Chopped off Pregnant Wife’s Arms with Steak Knife June 25, 2018

Related Articles

  • Ancient Babylonian Clay Tablet Holds the First Trigonometric Table

    Aug 26, 2017
  • map of cyclosporiasis cases in 2013

    The CDC Draws Attention To The Spike In Cyclosporiasis Cases

    Aug 11, 2017
  • Travis Kalanick

    Travis Kalanick Resigns from His Position as Uber’s CEO

    Jun 22, 2017
  • Amazon box

    Amazon Refunds Parents Whose Children Made Purchases Without Permission

    Jun 2, 2017
  • ice cream

    McDonald’s Has Been Quietly Altering Its Vanilla Ice Cream Recipe

    May 21, 2017
  • washington post

    Washington Post Will Be Expanding Its Newsroom

    Dec 28, 2016
  • disney store six new retailers

    Six New Retailers Will Give Up On-Call Scheduling

    Dec 21, 2016
  • sumner redstone viacom studios

    Sumner Redstone Will Officially Step Down From Viacom

    Dec 17, 2016
  • ibm new employees

    IBM Expressed Its Intention Of Hiring New Employees

    Dec 15, 2016
  • capsugel capsules

    Lonza Is Reportedly In Talks With Capsugel

    Dec 12, 2016

Categories

  • Business
  • Entertainment
  • Health
  • National News
  • Nature
  • Science
  • Stocks
  • Technology
  • US
  • World

Copyright © 2021 beacontranscript.com

About · Privacy Policy · Terms of Use · Contact

This website uses cookies to ensure you get the best experience on our website. Learn more.