the Financial Times’ Barney Jopsonreports that Amazon’s tax capitulation is part of a major shift in the company’s operations. Amazon’s grand strategy has been to set up distribution centers in faraway, low-cost states and then ship stuff to people in more populous, high-cost states. When I order stuff from Amazon, for instance, it gets shipped to California from one of the company’s massive warehouses in Kentucky orNevada.
But now Amazon has a new game. Now that it has agreed to collect sales taxes, the company can legally set up warehouses right inside some of the largest metropolitan areas in the nation. Why would it want to do that? Because Amazon’s new goal is to get stuff to you immediately—as soon as a few hours after you hit Buy. It’s hard to overstate how thoroughly this move will shake up the retail industry. Same-day delivery has long been the holy grail of Internet retailers, something that dozens of startups have tried and failed to accomplish. (Remember Kozmo.com?) But Amazon is investing billions to make next-day delivery standard, and same-day delivery an option for lots of customers. If it can pull that off, the company will permanently alter how we shop. To put it more bluntly: Physical retailers will be hosed.
Can Amazon pull it off? It’s sure spending a lot of money to try, and it has already come up with a few creative ways to speed up deliveries. In each of the deals it has signed with states, the company has promised to build at least one—and sometimes many—new local warehouses. But Amazon isn’t simply opening up a lot of new shipping centers. It’s also investing in making those centers much more efficient. Earlier this year, it purchased Kiva Systems, a company that makes cute, amazingly productive “picking robots” that improve shipping times while reducing errors. Another effort will allow the company to get stuff to you even faster. In Seattle, New York, and the United Kingdom, the firm has set up automated “lockers” in drug stores and convenience stores. If you order something from Amazon and you work near one of these lockers, the company will offer to drop off your item there. On your way home from work, you can just stop by Rite Aid, punch in a security code, and get your stuff.
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swordofomens reblogged this from abbyjean
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spacemarried reblogged this from kickdrumheart and added:
IDK I buy almost everything from Amazon if possible because it’s usually the cheapest price when I compare to local...
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jhameia reblogged this from abbyjean and added:
This sounds terrible. Yay, Amazon gets more opportunity to take advantage of impulse buyers and continue to treat...
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ziatroyano reblogged this from abbyjean and added:
Big-box stores and chains killed off most of local retail. What’s not good is that Amazon will continue to treat the...
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kickdrumheart reblogged this from fatmanatee and added:
there are a lot of things that i will not buy online. and paying for shipping makes me break out in hives. i only shop...
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titivil reblogged this from fatmanatee and added:
There’s one of those Amazon locker kiosks in a grocery on 26th and 8th Avenue in Manhattan. I guess this explains what...
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fatmanatee reblogged this from abbyjean and added:
Okay, so how does Amazon compare to Walmart? Same level of shadiness?
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abbyjean posted this