Faster Deliveries are Bad for Retailers

PAYWISE-payment-96px Recently, I purchased an item on Amazon that took only four days to arrive in Trinidad and Tobago and be ready for pickup. Wow! In the past, this would have taken 2 – 3 weeks. Some deliveries my still take that time but it is a clear where delivery times are headed.  This is a strong testimony to logistics improvements by online retailers and the local delivery services. Soon deliveries of foreign packages could take 2 days or less.

The delivery time for my package was equally shared. Two days from Amazon warehouse to my skybox in Miami and 2 days from Miami to Trinidad and Tobago including customs clearance. So, a 1 – 2 day timeframe is not farfetched.

Amazon has a free two hour delivery service in Miami for Prime members. There are some restriction to the items and postal code. That is, not all items are delivered within the 2 hours and it depends on the location of the delivery address in Miami. However, the items and areas under coverage are expanding.

Same day delivery by Amazon means that packages can be ready for pickup locally in just 2 days. In other words, I can purchase an item on Monday and be wearing it on Wednesday. Skybox services can offer faster deliveries as a premium service to customers; an additional income source.

A drawback to online shopping has been the delivery time. Local brick and mortar retailers have the advantage of buy it now, get it now. However, this is weakening. As the delivery gap shortens more persons will shop online.

This does not bode well for local retailers. Already, they are unable to compete on price, variety and, of course, service. Now their main advantage (ready purchase) is under serious attack. Another silent but dominant factor is search time. It is easier and less costly to search for an item online compared to visiting brick and mortar stores.

However, we cannot discount the shopping experience of visiting the malls and trekking from store to store. Nevertheless, more persons may browse at retail stores rather than shop. The availability of 24 hour delivery service by local couriers means that local online retailers can capitalize on the shift to online shopping too.

Is this the end of brick and mortar retailers? No not at all. However, for some businesses it is a sign that their industry has matured and is on a steady decline.