In a saturated industry, subscription box companies need a differentiator to succeed. From Blue Apron’s first-ever experiential retail popup shop to Birchbox’s partnership with Walgreens, they’re looking for ways to grow their business and meet consumer demands. Shipping excellence is one way to set yourself apart from the pack.
Amazon just turned up the heat in the three-way battle for dominance atop ecommerce sellers, announcing more than 10 million items eligible for its new one-day delivery standard via Prime. This compares with 220,000 items available for free next-day delivery from Walmart, announced in mid-May, and 35,000 from Target ReStock.
The largest two-story fulfillment center in the country will be under construction later this year in the Bronx, NY, with a planned 2021 opening, enabling ecommerce tenants to service the New York metro market with same-day delivery. It will total 969,000 square feet, including 595,000 square feet of fulfillment space.
Stein Mart has become the latest retailer to partner with Amazon, betting that increased traffic to the ecommerce giant’s lockers in the back of its stores for order pickup and returns will translate to sales for the struggling discount chain. The lockers will be located in about 200 of Stein Mart’s 283 stores by early June.
The U.S. Supreme Court declined to hear an appeal of a lower court ruling, which denied UPS’s legal claim that the U.S. Postal Service’s pricing model gave it an unfair advantage over parcel shipping competitors. In 2018, a U.S. Appellate Court in Washington, DC upheld the pricing methodology. Amazon backed the USPS in the case.
If Amazon owns nearly half of the U.S. ecommerce market, why the need to offer one-day delivery? The reason: Its singular obsession with customer centricity. Insights abound for those able to get past the headlines. Here are three of the most important takeaways that were either overlooked or under-covered in the media frenzy.
While retailers pursue same-day delivery, grocers often complete and ship orders in an hour, while restaurants get even less time. Merchants in food delivery thus have to make instant decisions about the legitimacy of a purchase or risk upsetting their customers. The trick is implementing fraud prevention without ruining the experience.