Amazon Invests $800 Million in One-Day Delivery! – The Buyer’s Journey 44

Amazon has invested $800 million in one-day delivery services, and it seems like that fruit of their labor might be on the horizon. We discuss what this means for the retail powerhouse and other retailers in today’s episode.

The Purchase Stage: A Refresher

The purchase stage of The Buyer’s Journey is easiest to explain. To simply put it, the Purchase Stage is when your customer purchases your product or service. But just because this is the center of the stage doesn’t mean it’s the only thing that matters. For example: how is a customer purchasing your product? What does your product’s packaging look like? If you offer a service, what does the online portal look like? On what device? These are all things that matter during the purchase stage. 

An Amazon One-Day Keeps The Doctor Away

Hilary Milnes on Digiday reports on Amazon’s latest earnings call for Q1 2019 where Amazon was discussing the $800 million investment in one-day shipping. There weren’t specifics on when one-day delivery would be available, nor what items would be eligible. At the moment there are already a handful of items available for one-day shipping, but availability shifts regularly.

“It’s as simple as price, selection and convenience. One-day increases convenience and selection in the consideration set for customers. By cutting the window in half, it opens up a lot of potential purchases and conveniences to customers,” said CFO Brian Olsavsky. “There are lots of components involved in being there for the customer when they need us. We think this is going to be groundbreaking, and we have this capability because we’ve been at this for over 20 years. We’ve invested in and fine-tuned our logistics.”

Other Retail Reactions

According to Laura Stampler on Fortune, Walmart’s stock dipped 3% Friday following Amazon’s earnings call. However, Walmart made sure to take a jab at the e-commerce giant.

Walmart is, of course, talking about Amazon’s $119 subscription fee for Amazon Prime.

Stampler reports that Target, on the other hand, already has a one-day shipping program for their “no-fee loyalty REDcard holders.” Orders do have to be at leasy $35 and be placed by 7pm, however. Later in her report, Stampler points out that “[r]etail equity analyst John Zolidis told Forbes that Walmart CEO Doug McMillion told him in October ‘that same-day delivery, not one-day delivery, was going to be the real battleground.’” With in-store pickup and acquisitions of Shipt, Target is well on its way to achieving that goal. 

“Today, Target guests have numerous ways to shop same-day and receive their purchases within hours,” Target told Fortune in a statement. “We have a range of options that make shopping easy and convenient, including our in-store shopping experience and delivery from Shipt in nearly 250 markets.”

Check out our next episode where we’ll discuss a news article covering the Retention stage of The Buyer’s Journey.

Tune into more of The Buyer’s Journey by checking out our YouTube and Soundcloud, and take us on the go on the iTunes, TuneIn, Google Play Music, and Stitcher.

Matt McGrorty

Videographer / Podcaster

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