Sunday, December 30, 2012

Amazon Has Ruined Online Delivery for Every Other Company in the World


You know how you get on a Saturday when it gets dark, it’s snowing out and, well, it’s Saturday?
As something of a hermit, I tend to get all settled in a bit earlier than normal people, so I was well settled watching one of the 8 million college football bowl games that’ll be airing over the next 10 days, when there was  knock at the door.

Now who in the heck would be here on a snowy Saturday? (Remember that hermits don’t get a lot of visitors.) It’s the FedEx guy. It’s 5:30 Saturday evening and he’s delivering the case of cat food I ordered from Amazon earlier in the week (Thursday to be exact). Ok I used a coupon and I get a ton of stuff from Amazon, so as the overseer and inheritor of three rather unsocial cats, I need cat food. Don’t judge.

Two things hit me: One, it sucks to be a FedEx guy on a Saturday when it’s snowing out and some idiot wants food for his cats and, two, Amazon has ruined home delivery for nearly every other company on earth.

With Amazon Prime, I get “free” delivery two-day delivery from Amazon. Of course nothing is free . . . Prime costs around $80 a year, and includes a few other perks, like streaming videos.
Some other companies offer free delivery on most stuff, like LL Beans, but a bunch offer not much and still, in the face of Amazon’s delivery (which is often free regardless of Prime, but not as fast). Companies like Harry and David’s offer free delivery on some items, but continues to peg delivery costs to the final price of the order. And while I understand it costs companies money to pick, pack and ship, charging the shipping and handling add-on based on the price of the goods purchased creates an apples and oranges problem for potential customers. When shipping can add 20 or 30 percent to an order, customers look elsewhere. To its credit, Harry and David’s does offer free shipping on many more items than it used to . . . so you can get those great pears without paying a shipping premium.

By offering fixed-rate shipping, many companies pass on the costs at a reasonable rate. Lucero, my favorite olive oil producer, offers flat rate shipping for $8.95, and free shipping on orders over $100. That works just fine for me.
Yep, Amazon has spoiled me, and no doubt has spoiled millions of other online shoppers as well. It has also hurt smaller businesses unable to cut huge deals with FedEx, UPS or the Postal Service and can’t afford to compete on shipping costs.

So thanks to the people who slug through the snow and the companies who keep those delivery trucks full of all kinds of goodies . . . even if it’s for unsocial cats.

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