Amazon Aims at Same-Day Deliveries; Brick-and-Mortar Retail Houses Have a Problem in Hand

July 12, 2012, By Sanjeev Ramachandran

Amazon is a killer rival for many of the retailers, mainly because of its low-price offers.

If it was the loophole which made it mandatory only for firms with a physical presence to pay taxes that helped this virtual retailer to sell things at cheaper price, now Amazon is changing its strategies in the exact opposite direction. Experts say the move could again hit brick and mortar retailers hard.

Amazon, which has been fighting legal battles against states for imposing sales tax, is now making a deal with them for paying the tax.

Moreover, it is planning to start massive warehouses in low-cost states and again lower capacity warehouses near populated cities.

There are indications that the company is trying to make next-delivery its standard, asking an extra amount to make a same-day delivery.

To make things more efficient, Amazon is planning to deploy robots in its local warehouses to fulfill the orders quicker with fewer errors.

It is also reported that Amazon is planning a locker mechanism which allows customers to own a locker in the local Amazon warehouse. Customers can make a purchase online while in the office.

The product will be instantly dropped into their locker which they can access through a security code provided during the purchase making it easier to pick up the purchase on their way back home.

The writing on the wall is clear. Amazon is going to grab the retail market once again, this time coupling lower price with speedy delivery.

The strategy is to make same-day deliveries as much as possible. Many have tried it in the retail sector and failed.

But Amazon is pumping huge investment which shows it will be a standard business practice soon.

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