Delivery to the customers’ door is expensive, even for e-tail giants like Amazon. They have explored Sunday deliveries with the US Postal service and are currently testing GPS tracked drones to deliver parcels to customers’ homes but this is subject to regulation and wide scale drone delivery appears to be a future rather than current solution to the doorstep delivery problem.
Asking neighbors to take in parcels is not a new concept but Amazon wants to take this idea one step further. They are developing a mobile app, which will allow individuals to sign up to collect and deliver parcels on a fee per packet basis.
This method of delivery is likely to be cheaper than using any of the couriers firms but is it as straightforward as it seems?
Benefits of Amazon ‘On My Way’ service
• This could be a carbon neutral ‘green ‘courier method, since the collections and deliveries will be on the normal route individuals already take to work or the store.
• This should be a cheaper and possibly quicker delivery method than currently available. Customers will benefit but so will Amazon who should significantly cut their cost of delivery by not relying on big couriers.
• Having another viable delivery method when negotiating price with the larger courier companies may allow Amazon to secure better prices from them too, again benefitting them and their customers.
There are possible downsides to this delivery innovation:
• Customer acceptance. Cheaper and quicker deliveries should make this possible.
• Will there be willing retail outlets in the desired locations, to store the goods for collection and delivery? Retailers paid on a fee per packet basis with a quick turnover will have easy income.
• Non – delivery; payment could be conditional on a delivery signature on the mobile app.
So will you get your Black Friday and Christmas parcels delivered by someone in your neighborhood this year? As long as they are on time and competitively priced who is going to object?