Amazon & The Delivery Experience

Axios: “Amazon has gotten so good at moving merchandise that it now accounts for 43 cents of every dollar spent online in the U.S., according to eMarketer … Lost in this torrent of news are indications that Amazon’s revenue formula is fundamentally changing: from a reliance on retail and cloud services, the e-retailer appears likely to power future growth with fulfillment and shipping services to third-party sellers.”

“Amazon’s latest offerings — Seller Flex and Key — are next in the line of this tradition. Seller Flex launched last month: It’s a new courier service that ships goods from outside sellers to customers’ homes. Amazon Key was announced last week: Using a smart lock and an indoor security camera, this program offers in-home delivery for Amazon Prime members. ‘This is not an experiment for us’: Peter Larsen, Amazon’s vice president of delivery technology, tells WSJ, ‘We think this is going to be a fundamental way that customers shop with us for years to come’.”

“The key to understanding Amazon is its monomaniacal focus on giving the customer what he or she wants, even before they know they do. Amazon is not going to wait around for FedEx and UPS to experiment with changes that could improve the customer experience, whether that means new products for home entry or faster delivery options. And history shows it would be wise to take notice when Amazon starts experimenting in your backyard.”

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