Whoa. Amazon Is Now Going For Same-Day Delivery. Look Out, Mom And Pop!
For years, Amazon had been able to kill brick-and-mortar retailers on price by having distribution and marketing centers in select areas that enabled them to skirt sales tax laws, thereby passing the savings on to consumers. They closed locations and centers in states that hit them with sales tax bills, fighting every cent of taxes stuck to not only them, but to their customers.
They had to. It was their point of differentiation and their competitive advantage.
But last year, they gave up the fight. They stopped with the loopholes and the skirting and the arful dodging, though it wasn't clear why. It turns out that they were adapting their strategy like the magnificent bastards they are. Rather than compete on price, like so many other retailers do, Amazon is going to compete in a manner that no smaller company really can: With same-day delivery.
Not even Netflix can pull that shit off, bro.
In case it's not apparently clear, same-day delivery is a game changer that has long eluded Internet retailers. But with the juggernaut Amazon, now distribution centers can pop up in large cities, meaning that people in densely populated urban areas can get stuff a few hours after they order.
And all of this spells even more trouble for traditional retailers, who had always been able to depend on the power of instant gratification in the war against Internet retailers. Amazon has the checkbook to back it up, spending $500 million in California alone to set up distribution centers that hire over 10,000 workers.
Overnight, schmovernight. I WANT MY KITCHENAID MIXER NOW!!!!