Can Amazon lockers at your local Post Office be far behind?
I promised myself that I would not write about Amazon or omnichannel retailing this week. And then, I was gobsmacked with the Monday Morning Eye Opener headline: "Amazon, USPS Team up for Sunday Deliveries". That's the same US Postal Service that is going bankrupt? I have to admit, this one was a shocker to me. But after picking myself up off the floor, I realized the pure genius of this partnership for both parties. The only constant about omnichannel retailing is change. Amazon continues to be on the forefront of breaking paradigms to deliver it "your way" … even if it is in a US Postal truck.
Future of Retail – The only constant is the speed of innovative change
I had the privilege of leading another IMS Retail University workshop last week. While we constantly update our content and case studies, what struck me about last week's deck was that more than 50% of the content was brand new. The IMS Retail U leading headline across the retail trends and best practices is: "Omnichannel is the New Normal."
I was asked a number of times in Retail U last week: "Where do you get all the current retail information?" Unfortunately, there is not a single source, or even a few sources. But as we have posted before, it is possible to subscribe to a number of "SmartBriefs" so that you can scan the trends for headlines and patterns. One source that I watch every day is MorningNewsBeat.com. Not only does Kevin Coupe and team spot the retail trends early, they offer great insight and analyses of what they mean. When I discovered that the Amazon USPS partnership by Kevin Coupe this morning was being covered in USA Today, you have convergence verifying a major trend.
A match made in heaven? Amazon and USPS will deliver on Sunday's
While Amazon and others have been pioneering two day shipping and even one day delivery, no one has cracked the code on delivering packages to US homes on Sunday. None of the major delivery services deliver on Sunday. So, when there is an "instant gratification" of wanting something before Monday, the consumer had to resort to finding it in store. Well, no longer. You can have it delivered to your door Sunday afternoon during the football game. Amazon has broken another barrier of reaching consumers any time and everywhere.
What does the US Postal Service get out of Sunday delivery?
If you have been reading any of the recent headlines, the US Postal Service is billions of dollars in debt. They are obligated to deliver US mail, but they don't make any money at it. The challenge has been to find ways to grow revenue, or cut services. There have even been proposals to stop Saturday mail delivery in the US to cut losses.
So, it is with great surprise (at least for me) to see Amazon teaming up with the USPS for Sunday delivery. On the surface, they would seem like the last partner to choose. FedEx and UPS delivery services would seem to be a more logical choice for Sunday delivery. But, it turns out that US Postal service loses money on delivering mail, especially "junk mail".
USPS actually makes money on delivering parcels and packages. They have pioneered "flat rate shipping", and do a great job of tracking shipments, which has earned the trust of US consumers. Sunday deliveries could be a big win for USPS to grow revenue and differentiate. After all, even if they are part of the US government, they compete directly with other large, for profit delivery companies. It will be VERY interesting to see what happens with FedEx and UPS and how they respond.
What's in Sunday deliveries for Amazon?
Sounds trite, but true: Amazon continues to amaze. Amazon continues to lead retail in innovation that makes it easier and more convenient for consumers to shop and purchase via Amazon. Will millions suddenly clamor for Sunday shipments to their homes? Probably not. However, by making Sunday delivery possible, Amazon removes another barrier of why a consumer might purchase in store versus online with Amazon.
I'm not sure of who approached who for Sunday delivery. My big bet would be that Amazon approached USPS. Amazon has a LOT to gain from enabling Sunday deliveries to homes:
- Sunday delivery will be initially available for only Amazon Prime members who pay $79 per year for membership. Sunday delivery is yet another arrow in Amazon's quiver to lock consumers into the whole Amazon Prime loyalty mechanism. Amazon Prime members already purchase 2x over other Amazon customers.
- Amazon is in a race to enable 24 hour delivery. Imagine if you could order on Saturday and have it delivered on Sunday. I might never go to a grocery store!
- Amazon has been scrambling to rollout Fresh and Easy to other metro cities. That takes trucks and logistics. USPS has trucks and delivery in EVERY US location.
Any Time At All: The new theme song for the future of retailing?
It occurred to me that a classic hit by the Beatles could be the new theme song for retail:
Any time at all, any time at all, Any time at all, all you've gotta do is call
Ok, we might have to change "call" to "click". But, any time certainly captures both the shopping and delivery capabilities in an omnichannel world today's omnichannel environment it is any time everywhere. It is interesting to watch how both Amazon and eBay are the innovators leading the way to where there are no clear cut lines of where retail begins and ends.
Amazon was a pioneer in putting Amazon pick-up lockers in 7-11 stores. This opened yet another avenue of convenience for consumers who might not be home for delivery, or choose to pay cash. Mark my words; if Sunday delivery through USPS is a success, it is only a matter of time before you see Amazon pickup lockers in your local Post Office. Not only does USPS have trucks … they have lockers already there … with 24 hour access in most locations.
The future of retail winners will be those who not only provide the most personalized shopping experience, but those who can provide the most choice and convenience end to end in delivering the purchase the "consumer's way" … any time and everywhere.
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Sources:
- MorningNewsBeat.com: Amazon USPS Team For Sunday Deliveries, Kevin Coupe; November 11, 2013
- Delivery Person Image: Stock Imaes; Freedigitalphotos.net
- Amazon Box Image: Wikimedia Commons
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Posted by: Ranjanxroy | January 04, 2014 at 06:38 PM