From its humble roots as a bookseller based in a garage to its international domination over retail, Amazon’s story has been one of explosive and unprecedented growth. Today, Amazon is a veritable empire with fingers in many pies—from aerospace robotics to lettuce. Its upward trend shows no signs of slowing down, which has its many competitors watching Amazon with a wary eye.
Shipping Services
One of the biggest effects of the Amazon business model on the retail industry as a whole is on shipping. Amazon has millions upon millions of Prime members, who receive free, two-day shipping on millions of items on Amazon. With little more than the click of a button, Prime members can order anything from gourmet spinach spaghetti to compound miter saws. The Prime Effect means that customers expect this same level of convenience when they shop elsewhere online. It wasn’t that long ago that customers were used to waiting seven to 10 business days—or longer—for an item they’d ordered online. Now, they expect rapid delivery for free.
Shopping Experiences
The Amazon Effect also encompasses shopping as an experience, rather than as a means to an end. Thanks to Amazon’s relentless focus on convenience and streamlining the shopping experience, retailers are responding by changing the way their customers experience their brick and mortar stores. To entice customers to come back to the stores, companies are focusing on improving their customer care and concierge services. For example, some companies have set up play areas for the kids, a free coffee bar for the adults, and even live music to entertain shoppers and encourage them to stick around longer.
Every retail business should assume that it has to compete with Amazon, which means that every retail business needs to gain the competitive edge in terms of inventory management and freight shipment. When your company partners with Xcel Delivery Services, you’re getting a powerful and agile solution for all of your warehousing and shipping needs. Call our office in Phoenix at (602) 368-1300 and let us know how we can help your company gain a competitive edge.
