Amazon to Have Same-Day Delivery Soon: Will the E-Commerce Giant Destroy Local Retail?

mrosen814 2012/07/13 18:00:00
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E-commerce giant Amazon.com, is investing tons of money (like, hundreds of millions of dollars) into opening massive shipping centers close to major metropolitan hubs. In California alone, "Amazon will spend $500 million and hire 10,000 people at its new California warehouses."

Why is Amazon doing this, you ask? Because Amazon’s new goal is to get stuff to you immediately -- as soon as a few hours after you hit "buy." This will undoubtedly shake-up the retail industry, if not damage it severely. There have been online companies in the past that have attempted to offer same-day delivery, but quickly failed.

SLATE.COM reports:
Amazon has long enjoyed an unbeatable price advantage over its physical rivals. When I buy a $1,000 laptop from Wal-Mart, the company is required to collect local sales tax from me, so I pay almost $1,100 at checkout. In most states, Amazon is exempt from that rule.
collect local sales tax pay 1100 checkout amazon exempt rule

Read More: http://www.slate.com/articles/business/small_busin...

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  • thє вlu... Beat Ma... 2012/07/15 21:57:19
  • ExaltedGod 2012/07/15 15:16:01
    Hell no
    It will cause them to lower prices and stop that stupid excuse you get it now thats why you pay more.
  • BIG BAD JOHN R. 2012/07/15 15:02:59
    I sure that they will make a major dent in the market but there will always be those that will not like that way of doing business.
  • Christ0212 2012/07/15 13:55:52
    Its a shame that big companies put little ones out of business but at the same time you government can not get involved in the goings on to much of private business and its growth. The public benefits off competition between companies, it one of the beauties of the free market system. If Amazon has lesser prices and can get you a book or video in one day you can bet small book stores will get hurt. Americans can be lazy in some areas and if the purchasing of literary or video entertainment can be that fast, you can bet they will order from the internet or phone.
  • ZenerSix Christ0212 2012/07/15 15:19:35 (edited)
    As long as we have a federal patent office, there is no free market. Patents create monopolies and monopolies turn free markets into captive markets. There is some competition between brands of similar products but direct competition is prohibited so retailers must accept whatever wholesale prices they're offered.

    The only reason stores like WalMart are so successful is because manufacturing monopolies have given them the best prices for selling the most product. Amazon is just following the same business model through the internet, which is more efficient.

    Monopolism plus federal over-regulation creates a mixed-market economy, which is 90% communistic. The remaining 10% represents the food industry. Nobody holds patents on hamburgers and hotdogs.
  • Christ0212 ZenerSix 2012/07/15 16:58:27
    Excellent comment. Very interesting.
  • taitaFalcon23 2012/07/15 13:39:02
    this is the single largest reason Best Buy and other retailers are dying with their present business paradigm
  • ExaltedGod taitaFa... 2012/07/15 15:19:56
    Ummmmm.... no. The reason why they are dying is because they inflate the price of their goods beyond means that people are willing to pay. $50 for an HDMI cord when I go to Amazon and get one identical for $10 bucks. Their profit margins are destroying them not consumer services.
  • sjalan ExaltedGod 2012/07/15 16:45:08
    EG, you are right. Last month I went to Best Buy to purchase a TV. Nothing fancy just something to replace the old CRT 20"er in the family room. I already had a blue-ray player that will play all my DVD's so I looked and looked.

    I found TV's by off brands that were not listed even by most of the reviewing staffs of the major magazines. Second by the time I found a TV I went looking for the necessary cords etc to hook it up. I was dumbfounded to find an HDMI cord cost over $45. Seems I needed two of them ?

    By the time I was done adding it all up for a 32" 1080p 60hz tv and cables I was looking at over $600. Just wasn't going to happen.

    Went to Walmart next. They had the Element (USA assembled) 42" 1080p 120hz TV for $548. on sale for $468.The sales person said, "go to Sam's for the HDMI cables Better deal yep $18 for two cables

    When I got done I had a better TV for less cost.

    I had checked out Amazon prior to doing this shopping and got the PRICE POINTS I wanted in mind then I set out shopping. I think I did very well.
  • Mr. Won... sjalan 2012/07/16 14:51:36
    Mr. Wonderful
    I've had similar experiences. I love Best Buy, I have a store five minutes from where I live. use to have a big Circuit City too and I'm an electronics junkie! I'm even a long time stockholder of BB and have made a nice profit, before the stock took a nose dive.

    Here's the thing. About 5 years ago, main tv gave up the ghost. I wanted a big screen as a replacement for the family room, did the usual research, settled on a 50 inch plasma. Back then ouch, typical retailer wanted about $7,000 for a top of the line name brand. Well, that's a bit steep.

    I looked and looked and must have driven a couple hundred miles visiting all the retailers in the area. Then I went online. Found the model I wanted several places, but all out of town. They also wanted $350 to ship it. I print out the web page that has the specs the price a little less than $2,000 cheaper than Best Buy. I plead with them look at this, can you come close to this price? No, they didn't even try. Expecting me to pay that much more for the same model if I bought it from them, after they ordered it. I'm no fool. I swallowed hard, hoped it would arrive is good shape. Did, trucking company was glad to lug it in the house, didn't even have to ask or pay more. Been working fine ever since still great picture. I used what I saved to buy a nice A/V receiver, DVD player.
  • taitaFa... ExaltedGod 2012/07/16 01:12:54 (edited)
    I respectfully disagree but in any case; it is always a perception of price vs expense = value; that is addressed thru a measurable monetary value + customer service. These two elements create a relationship of desire + opportunity = sale. The desire and opportunity have to reside in the same place at the same time. That makes competing on price secondary; and less important.

    I.E. a car is a car and cost X, while that same car that takes care of it's own maintenance for the price of X + 10 dollars will outsell the first one.
  • bleep 2012/07/15 13:28:55
    Evolution of the store
  • sodabox 2012/07/15 13:17:37
    Their selection is unbeatable. Price is normally unbeatable to, not always though.
  • Beat Ma... sodabox 2012/07/15 21:35:08
    Beat Magnum True Hero
    I have found that you can find better quality stuff from Amazon than you can find in a store. Especially specialty things like foreign-plug adapters (a product I use often).
  • sodabox Beat Ma... 2012/07/16 12:31:28
    Yes, and the user reviews are very helpful.
  • Mr. Won... Beat Ma... 2012/07/16 15:05:50
    Mr. Wonderful
    Yes! With electronics, like cameras, tv's, stereos, there's typically three tiers. The cheaper no name or bottom shelf name brand stuff you see in discount retailers like Walmart, K-Mart, even more middle of road retailers like Target. Then you have models you typically find in stores like Best Buy, then what the public often doesn't even know about is the nich market, the very top of the line models usually only sold in speciality stores or restricted to knowing where to look to find them online that the manufactuers rarely even advertise.

    You get what you pay for. ;-)
  • metspatriotshd69 2012/07/15 12:04:32
    I like to shop at stores...
  • Tee Quake 2012/07/15 11:50:12 (edited)
    Tee Quake
    Going to stores and malls is as American as apple pie. It's not just about buying stuff, especially for the gals, it's about doing something with friends. Plus, I live in the stix, what's Amazon charging? A home depot wanted $5O.00 to deliver a waterbed 10 miles off the highway. I wound-up driving over 200 miles for the bed and I had no choice. You know, Walmart's got into the supermarket business and people still get their food from grocery stores.
  • Johann 2012/07/15 11:14:23
    I use the site for Music and Textbook searches. I hope they do not mess with Prime members, you pay only for the goods no shipping/handling fee. I like the wait, gives me time for other things to do when it comes. I also love to be able to walk around the outernet over internet only shopping. Brick/Mortar stores will survive. Have not been to BestBuy in two years.
  • cc 2012/07/15 07:13:32
    They will if they can! They are the new Wal-Mart!
  • Wretha S 2012/07/15 05:18:31 (edited)
    Wretha S
    ...can't imagine how much the shipping cost will be with SAME day delivery... think about how much they charge for 2 day and same day shipping... and not everyone lives near a major town where they might be a warehouse.... so no, this will not kill the brick and mortar stores.

    I do a LOT of shopping on Amazon, I love it, I also live in a very rural area, the nearest WalMart (or any other large retailer) is 3+ hours away from me. I almost always look for and get the free shipping (Super Saver Shipping), I rarely pay directly for shipping, I realize it is embedded in the total price, I'm not a total ID10T. :)

  • missraven56 2012/07/15 04:35:37
    Hmm well onpime bookstores are kind of killing those awesome small little bookstores..so i would say yes..and i completely hate how fast they want to get merchamdise out to people..what they're going to di if they don't get their junk made in china soon enough (not that evenythi g on amazon is bad, i actually use that site a lot)... But its just helpimg with reworing of our brains to have shorter attention spans.. To want everyrhing when we want it..
  • Johann missrav... 2012/07/15 11:03:00
    If that is so, I must have a firewall blocking those receptors from switching to me-me-me. I do not mind waiting a bit.
  • Beat Ma... missrav... 2012/07/15 21:36:32
    Beat Magnum True Hero
    Well, when I go to buy something, it's typically because I have an immediate need for it.
  • CuresCancer 2012/07/15 03:24:41
    Wherever Amazon opens a warehouse, that state will start charging sales tax. So maybe this isn't such a great idea.
  • realist 2012/07/15 03:21:46
    If they can pull it off its another step towards removing the need for retail outlets. I know the only reason I shop retail is if I can't wait the 3-5 days for it to arrive.
  • no1ymfan 2012/07/15 03:13:21 (edited)
    I don't have to buy products with Super-Saver Free Shipping to not have to pay shipping in the stores. That's not to say I don't use Amazon. Love the money I save from it. Same day shipping? That's friggin' awesome!
  • KeithL 2012/07/15 03:00:41
  • sundance 2012/07/15 02:49:49
    Yes, they will have their way with retail for a while. However, once one of the big retailers starts whining to congress about some "unfair advantage", I am sure they will pass a law that will level the playing field. Wont surprise me a bit when they tax the internet, and at a higher rate than local retail. This wont cure the problem, but it will punish internet users, which in the eyes of law makers is the same thing, isn't it? Will be yet another shining example of government at work....Just a thought...

    PS...I'm from the government, and I'm here to help......
  • jacob crim 2012/07/15 02:21:35
    jacob crim
    I really do not think the mom and pop local store will ever die. I have a sense of pride buying records from the local shop and not Best Buy. I love getting my coffee from the local cafe and not Starbucks. However I do think Amazon is hitting the mega stores like Best Buy, because they have nothing to offer other than electronics.

    amazon best buy showroom
  • Beat Ma... jacob crim 2012/07/15 21:38:07
    Beat Magnum True Hero
    I agree. Mom and pop have nothing to worry about. It's big box and honestly, good riddance! Big box isn't even a good job maker - trust me, Best Buy is a god awful place to work.
  • the judgebigdogeagle-~PWCM~JLA 2012/07/15 01:37:20
    the judgebigdogeagle-~PWCM~JLA
    Sorry Me Bad.Old Age. Nope it won't.You will probably pay a big price and lose the discount. I could see it for text books I need,like one i found for 10.00 that usually about
    80.00. and I need it for school like i did ten years ago.and it would take 6 days to get here & I need in 3.
  • flyingseaturtle BN 2012/07/15 01:22:54
    flyingseaturtle BN
    I have to pay sales tax in Texas with Amazon ;-)
  • TKramar 2012/07/14 23:54:13
    Same day delivery--hah!

    People who want a pizza can get what they're after same day. Other things, not so much.

    And reading the article, what if you don't live near one of these hubs?
  • Oli 2012/07/14 23:42:05
    Its already happening.
  • Princess_Peach 2012/07/14 23:28:10
    I would buy everything except clothes and food on amazon then. EVERYTHING!
  • darlenedoskas1969 2012/07/14 22:32:44
    I want to FEEL my purchases BEFORE I pay for them... I like to shop IRL, and will NEVER exclusively shop online
  • ♥K14 2012/07/14 22:02:51
    But we can hope :)
  • MarinerFH 2012/07/14 20:07:25
  • ☆stillthe12c☆ 2012/07/14 19:30:43
    I would not say that it will destroy it, but it will certainly make it more difficult with lower sales. People will still buy thing from stores as they want things now rather than to wait a day. We are still impulse buyers.

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2016/02/13 08:58:38

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