Until fast delivery is innovated, the best thing is same-day, a concept Amazon is aggressively pursuing in a time of growing demand for faster service.
Amazon said on a Monday (August 1) blog post it now offers same-day ordering and delivery for Prime members in more than 10 US cities from retailers including PacSun, GNC, SuperDry, and Diesel with more to come. There is also an option to buy online, pick up in store (BOPIS).
Read more: Amazon offers same-day delivery from local retailers
Prime members in Atlanta, Chicago, Dallas, Las Vegas, Miami, Phoenix, Scottsdale, Seattle and Washington, DC are the first to taste the new same-day offer, free for U.S. Prime members spending $25 or more on qualifying items and $2.99 for those spending less than $25.
It’s a multi-level local game, as retailers within a shopper’s postcode get an extra boost in same-day Amazon orders, and consumers get the speed and the commodity. The e-commerce leader is actively recruitment retailers to “grow your business with local selling”.
“We see great potential in our expanded partnership with Amazon, which includes direct delivery from select PacSun outlets,” Mimi Ruiz, vice president of e-commerce at PacSun, one of the first participating retailer groups, said in the blog post. It’s one more way for us to give our customers the styles they want and love, when they want them.
Consumers want faster deliveries and demand same-day delivery, according to “The ConnectedEconomy™ Monthly Report: The Rise of the Smart Home,” a July PYMNTS study.
Get the report: ConnectedEconomy™ monthly report
“For many e-commerce shoppers, waiting two or more days to receive their purchases is no longer enough; many expect to acquire their purchases the same day they are purchased,” the report states.
Twelve percent of US consumers made e-commerce purchases in May online for in-store/curbside pickup or same-day delivery, equating to approximately 30 million shoppers showing a need for speed.
Walmart is feeling the heat, having lost a bunch of shoppers to Amazon during the pandemic. Early July, Walmart announcement that its “straight to your fridge” home delivery service is now an add-on for Walmart+ members.
“Our members want options and a shopping experience that’s easy to navigate and meets their individual needs, while saving them time and money – that’s more true than ever,” said Chris Cracchiolosenior vice president and general manager of Walmart+ in the ad.
However, unlike Amazon’s news of a same-day program that incurs no additional cost, Walmart+ members – who already pay $12.95 per month or $98 per year for membership – “can now add unlimited free home delivery and no tip for an additional $7 per month or $40 per year. That’s $138 per year for both, which is $10 less than previous annual prices when Walmart+ and InHome were separate subscriptions. New customers who sign up for both services also benefit from the reduced price of the combined programs.”
Whether that’s a big enough saving remains to be seen, much like Amazon’s same-day test success with select marketplaces and merchants.
From his own focus on the same day, Walmart Chief eCommerce Officer Tom’s room said in a June CNBC interview that by adding InHome, an order “could arrive within hours of purchasing it online, as opposed to days later. So it’s a transformational experience in terms of speed, which is really hard to replicate without that footprint fantastic we have.
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