How Amazon’s Competitors Rank on Last Mile Delivery ?

ecommerce-delivery-modelsAmazon’s strategy, with ever-shorter delivery options, has allowed a pure eCommerce player to gain a foothold in Local commerce and an increasingly bigger share of consumers’ wallets. But while Amazon has always been and will remain retailers’ top competitor in many product categories – especially in consumer products – some of these retailers could actually benefit from the company’s growing fulfillment capabilities. Today, Amazon remains the clear leader in fulfillment, based on number of offerings, global fulfillment center footprint, and ability to manage demand elasticity through its digital assets.

Today, however, services such as Google Express, Postmates, or Instacart and new fulfillment models based on real-time driver networks such as Uber, Lyft, and (more…)

BigCommerce Next – Powering Offline Retailers to Go Online / Mobile

Big Commerce The homegrown engineering team from Aussie tech startup Bigcommerce has revealed new tools to help anyone become an online / mobile retail entrepreneur.

Called Bigcommerce Next, it’s a whole host of new tools and systems (20 new features). It rolls out today to the 50,000 stores that use this Aussie startup’s software. We’d be happy to put you in touch with one or two of them so you can see how (more…)

Amazon’s Subscriber & Save Offerings – Traction in Grocery a Surprise

Amazon Subscribe and Save GrocerySubscribe & Save has multiple benefits for AMZN, as it increases user purchase frequency and Amazon’s share of wallet within the $285bn consumables (ex fresh) market. Subscribe & Save is also a form of behavior modification, as habitual subscription-based ordering has the potential to alter consumers’ traditional offline shopping behavior and traffic flow. Not surprisingly, the most penetrated categories so far are Grocery (~4%), Beauty (~1%), and Health & Personal Care (~1%).

Subscribe & Save is essentially Amazon’s version of automatic replenishment. It offers users discounted prices on select items (typically sold in bulk) when they choose to have them automatically replenished from Amazon.com at regular, pre-determined intervals (every 1, 2, 3, 4, 5, or 6 months, etc.) (see below). This service (more…)

How will Amazon Fresh Impact Offline Grocerry Retailers ?

Amazon Fresh - Online Grocery Retailing ModelAfter testing for 6 years in Seattle, Amazon launched AmazonFresh in LA, which is the beginning of Amazon’s grocery expansion efforts to potentially all large metro areas in the coming years. The grocery category is a ~$600bn opportunity in the U.S., but Amazon’s strategy will likely target the top 20 metro areas (MSAs) by population, which we estimate is a $220bn opportunity.

Some of the Attributes to AmazonFresh that may differentiate it from its competitors and diminish the negative impact of AmazonFresh include – charging fees ($7.99-$9.99 per deliver below $100), Amazon Prime Fresh program (high $299 upfront fee), opportunity to sell non-grocery products that have higher margins, third party marketplace and AmazonFresh may target a higher income customer. (more…)