Amazon Angling For Same-Day Delivery Beyond Groceries 193
New submitter lipanitech writes with an except from an interesting look at the upcoming reality of same-day delivery for many customers within reach of the Amazon delivery supply chain: "The vision goes well beyond just groceries. Groceries are a Trojan Horse. The dirty secret of Amazon is that it really doesn't distinguish between a head of lettuce and a big screen TV. If Amazon can pull off same-day grocery delivery in NYC, it ostensibly means consumers can order anything online and receive it the same day. By logical extension, that means Jeff Bezos, the CEO of Amazon, is on the cusp of rendering every retailer on earth obsolete." While I'm happy to order dry goods like electronics online, I've always been skeptical of other people picking out my groceries. On the other hand, I must admit that (at least in its Seattle delivery area) Amazon Fresh does an impressive job of delivering decent produce.
Fresh Direct (Score:5, Insightful)
We used "Fresh Direct" when we lived in NYC and we were usually happier with the produce than if we got it at the grimy Food Emporium. It was quite popular, so I don't think it would take long for people to get used to grocery delivery. The one hang-up: in NYC there are doormen. I'm not sure how you get groceries without a doorman unless they just leave it on your front stoop!
Re:Town centers (Score:3, Insightful)
I've been in the grocery business.. (Score:5, Insightful)
There's a certain advantage to the online or delivery based grocery stores. They don't need to manage as packaged and portioned product as the traditional grocery stores.
Take meat for example.
In a traditional grocery store, there's hundreds of cuts of meat that are packaged up into individual portions sitting in a refrigerator waiting to be picked up by some consumer. There's a good chance that it won't be picked up and will eventually need to be tossed. Also, storing cut up meat isn't as efficient as say storing an entire side of beef/whole chicken/pork etc..
With the on-demand grocery, the side of beef is whole until an order is placed and then that side is cut up as per the orders that are needed. So if you need 50 steaks, you cut up exactly 50 steaks. Compared that to the traditional store in which you have to base that days sales on historical numbers and predictions rather than actual orders.
If you as a meat-dept manager guess that 100 steaks will be sold on a thursday and only 50 are sold, you're going to lose money. With the online butcher, you only cut up 50 steaks. In this case you're much more efficient as you have less product waste.
It's the same with any other type of produce, also the shipping of produce from warehouse to grocery store via truck induces more issues around bruising/spoilage/damage etc. If it's sent to your house directly from the warehouse, then that's one less organization that your product has to pass through, thereby enabling you to have a better product. I'm also sure they'd allow you to refuse product say if for example, eggs were damaged.
The problem with the online is the same one as the movie rental business started out with. The impulse buy. Grocery stores are great at this, you walk by the steak counter and decide "this looks good, i'll have steak tonight". Online didn't have this ability as you had to wait a day or two to get your steak. Netflix had this problem vs. rental stores as you couldn't just do an impulse "movie night" if they had to ship you a dvd. Now with Netflix-streaming you can have a 'movie-night' as an impulse b/c the movie is provided to you the same day.
Re:Town centers (Score:5, Insightful)
One can argue that the retail shopping experience that we've come to regard as the norm didn't really appear until the middle-class started shopping like the upper class did, where choice became possible and one could actually discriminate between objects to purchase. It's fairly expensive to run a retail store that's packed full of merchandise that lets everyone touch everything. You have to have plenty of floor space. You have to have pretty displays and lots of bright lighting. You have to clean up after the customers. You have to stock things speculatively en masse, and have to discount merchandise that doesn't sell but try to strike a balance between that discounted merch and full-retail prices for other merchandise, lest people not buy your full-price stuff and instead opt for the cheap stuff. And you have to deal with all of the inevitable clashes between your staff and the public, and between members of your staff.
A catalog service does away or shrinks many of these issues. Floorspace and lighting are what's OSHA-mandated. Appearance isn't so much an issue so long as the warehouse is kept tidy enough to avoid damaging the merchandise, and the warehouse can go decades between remodels if it's set up right in the first place. Less staff and no public browsing means no staff-public interaction problems, and if the staff is kept busy pulling and shipping merchandise, less staff-to-staff problems. The warehouse can also actually stock less materials if they want, so if something doesn't sell they don't have as much of it on hand as they might in retail stores, and since online it seems harder to compare this discounted thing with this full-priced thing on a tangible level, it might not even cannibalize full-priced sales.
I like some retail shopping, but sometimes it's really annoying, and I think there's plenty of good in a mail-order or internet-order catalog to make up for the negatives.
Re:Town centers (Score:5, Insightful)
I think you're confusing big-box stores with retail in general. Big box stores carry more of high profit margin items, and rarely, if ever, of low-profit/low-demand items. That is correct.
Where you go wrong, though, is that all stores are like this. For example, a local hardware store had everything (and I mean everything) I needed to remodel my basement. From the hammer and nails to the specialty trim. They didn't have a lot of each thing, and I paid a little more for convenience, but they had it. The local computer parts store carries everything from 50'+ HDMI cables to 2-pin adapters, from power supplies to charging pads for remote controlled helicopters. They might only have one or two of each thing, but their prices are competitive with on-line, and they do good business.
In other words, retail is more than just big box stores. There are countless small shops just like the two I mention.
Re:Fresh Direct (Score:3, Insightful)
flaming is not trolling. And some people deserve to be flamed.
Re:Town centers (Score:5, Insightful)
even though the catalogs may have "had everything", you didnt order "everything". only things you couldnt get locally, even if local meant a 10/20 mile horde/buggy ride to town. which they did regularly, whether regularly was once a month or once a week. hell, as it was delivery was to the town, not your door, so you still had to go get it.
we're getting mroe and more to the point where you physically cannot get things locally. the big box stores pushed out the local vendors with cheap plastic crap. and now even the big box stores are slowly being pushed out by the online stores.