Amazon tries to free up to consolidate its retail business that day

cloud network hunting on June 1

the day to express business has been going on for many years of struggle, in the field of competition, amazon has always maintained a fairly low profile – now the situation has changed.

29, amazon 14 city circle in the United States for its large gold members provide free day of service. New services are seen as limited gold user to arrive in an updated version of the two. In standard gold user optional 20 million products, the business covers the one million kinds of goods. In order to obtain the same day service, users need to be finished before noon that day at least $35 of the order.

amazon for years experience version delivered on the same day service for a long time. They waited until now only after its logistics infrastructure more mass to provide such services. Amazon in the past few years spent a lot of money in the main city circle construction of a large amount of logistics center. The cost greatly beyond the company’s bottom line – however amazon’s bet is that money can help them in the same day delivery business far ahead of its rivals in the online and offline.

amazon faces the question is how to make the same day delivery business benefit.

now, assuming that the service can be completed with good quality, really so amazon relative to its rivals in the big or small all have a huge advantage. However, Google and eBay have arrive in business down get stuck on that day, though they didn’t like amazon entities rely on the construction of huge logistics and warehousing center rather than local chain to provide the goods. Walmart has also tried the same day of business, but the things they sell more commodities.

for amazon, however, they are faced with the problem is how to make the day of business benefits. When December last year, amazon launched a small range of services “Prime Now”, Prime Now at $7.99 price for gold membership within an hour of express delivery of 25000 kinds of “daily necessities” service. At the same time, another project Prime Fresh member at a higher price to provide the same day of cargo Courier. For frugal clients, of course, wait a few days can revoke the postage, the extra day or freight is total waste of seem to be on the same day. At the same time it also shows that the amazon while improve the speed of delivery significantly increased transportation costs. By provided free of charge on the day of service, it seems that amazon’s return to his development the core retail business secrets: first, the strategy for profitable growth. By making the business free, more customers tend to try him, once the service accepted by the public, people would treat other businesses of the same price with the same request – and others are forced to join the arms race. If the amazon’s day of plan is successful, he would be the best basic commodity business (he is toward this direction), and the best electrical contractor (large quantities of goods and low price). Anyway, don’t want to just do amazon online retail giant, he wanted his own retail, that’s it.


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