Amazon is definitely a pioneer on internet based shopping and services. There were not many companies that would provide online shopping as Amazon would do twenty years ago. Since then Amazon has made improvements on three fronts as Jeff Bezos mentions in this video: fast delivery, various choices for customers, and low prices. I think Amazon has done great in the first two goals but not as successful in the third one. For this reason, I think it will have big challenges in the next few years.
Amazon Prime lets you purchase an item and have it sometimes in the same day, or at most in a couple days for free. Well, not completely for free but once you pay the prime membership then for free. Already the speed of delivery is super fast and they are still working to make greater improvements. Pretty much every product is also available on Amazon, thus a large variety of choices always. But here is the billion dollar question. How often do you want the item you purchase within 24 hours? How intolerable is it if you buy a heater, towel, book, dress, cologne, toy, etc. and get it in 3 days? Are you willing to wait 3 days if you get a deal with 10% lower price?
I have realized that in the last couple of years I have started to purchase less and less from Amazon even though that I have been paying the prime membership fee. Instead I have made a lot of online purchases from Walmart, Costco and Best Buy. I have received the items sometimes with a 3 weeks delay but I have been almost 100% satisfied always because I thought I found a great deal. Who cares if the 3,000$ massage chair is going to arrive in two weeks but instead I got a deal which was 20% cheaper than Amazon? Who cares if the exam gloves I just ordered from Costco are going to arrive in three days but instead they are 30% lower than the ones on Amazon?
These other companies also understand that delivery speed is a factor. Therefore, they are making huge investments on that through partnership with Google Express and other means. My 2 cents is that unless Amazon focuses more on the price, they are going to gradually give more and more market share back to the other giants.
I have realized that in the last couple of years I have started to purchase less and less from Amazon even though that I have been paying the prime membership fee. Instead I have made a lot of online purchases from Walmart, Costco and Best Buy. I have received the items sometimes with a 3 weeks delay but I have been almost 100% satisfied always because I thought I found a great deal. Who cares if the 3,000$ massage chair is going to arrive in two weeks but instead I got a deal which was 20% cheaper than Amazon? Who cares if the exam gloves I just ordered from Costco are going to arrive in three days but instead they are 30% lower than the ones on Amazon?
These other companies also understand that delivery speed is a factor. Therefore, they are making huge investments on that through partnership with Google Express and other means. My 2 cents is that unless Amazon focuses more on the price, they are going to gradually give more and more market share back to the other giants.
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