Why I stopped Using Amazon
As many Prime members do, I assume 2-day shipping is common and expected in most things I buy on Amazon. It’s one of the brilliant business strategies that Amazon’s used to build its preeminence as the world’s largest retailer. Yet, many items are now showing delivery dates of 4-5 days or more. It’s not in time for customers who tend to buy last minute. Like me. Two issues arise as a good example of the implications of the current situation. The first is brand promise. The second is supply chain strength. Brand promise may be forgotten in the problems right now, or certainly forgivable, but it is not forgotten as
switching costs get lower and expectations are not met. The issue comes down to satisfying the customer. Amazon has invested heavily in the expectation of – day delivery and even 4-hour delivery on some items. The expectation is ingrained in every Prime® member like me. When that promise can not be met, Amazon is doing the right thing by publishing the actual delivery expectation. Yet, it doesn’t meet the customer need.The rise in Amazon sales vs. the in Walmart sales. Amazon won the sales numbers, but that isn’t the surprise. Walmart turned in solid store performance and demonstrated dominance in grocery, with it’s app downloads beating Amazon’s by over 20% according to tech crunch.
Further, we see Walmart’s response to Amazon. In my opinion it is moving in the right direction. Walmart is pouring money into it’s online features such as VUDU for video and using the strength of its supply chain to delivery on the 2-day shipping expectation. Using the advantages of Walmart being omni-channel it allows in-store shopping (an experience I am once again grateful for, even though I haven’t been in a mall or super store in years); online shopping and very fast in-store pick-up or bring to your car services. The main promise is 2-day free delivery without a fee. Obviously, there is more to Prime than delivery, which I use extensively but the delivery drives much of the decision process. Walmart also can deliver price advantages, which is nice – but Amazon as the leader doesn’t need to compete in that arena. The questions in my series of videos and articles we will explore is flexibility and adaptability in the Supply-to-Sales™ value chain:
- How does supply chain play into strategy?
- What is the role of omni-channel and hybrid model sales?
- How does user experience play into strategy?
- What is the strategy for Manufacturers and Distributors in B2B to go B2C?
- The outcome of this unique event will be to disrupt both supply chains and commerce, what will we see emerge?
In the end. Will I give up Prime? No. Am I now looking more carefully? Yes. Am I using Walmart more online? Yes. The proof will be where do people start looking first… Rob Neumann is the CMO/CTO of CoreShop Solutions. It provides technical and business solutions for commerce from Supply-To-Sales. CoreShop Solutions specializes in complex B2B commerce and improving B2C commerce. It is proud to partner and utilize both Microsoft and PHP based solutions like Magento, Sana, Shopify, Perfion, Akeneo, PimCore, PWA, Web2Print, Bonitasoft and AI with RPA. CoreShopSolutions.com. He is an expert speaker on marketing and supply chain platform “solutioneering™”.