The Amazon Effect &Home Delivery

It can really only be called the “Amazon Effect”: Consumers want what they want – quick, cheap and (most importantly) delivered directly to their door.

In that environment, what’s a retailer to do? Align their delivery offerings with their customers’ wants, of course! According to new research from Retail Systems Research, however, true alignment remains a “future state” of the industry.

In RSR’s new benchmark report, “Home Delivery: Retailers’ Brave New World,” the research firm sheds much light on the state of retailers’ delivery strategies. The report’s key finding is quite interesting: While retailers large and small have correctly interpreted that speedy delivery (with narrow delivery windows) is incredibly important to consumers, things quickly diverge. To wit:

  • According to RSR, 45 percent of “retail winners” cited extra services, like installation, as a key business driver. By contrast, only 33 percent of consumers cited this as a priority.
  • Instead, consumers overwhelmingly (64 percent) noted that retailers with physical stores nearby have an advantage, as they – in consumers’ minds, at least – should be able to provide goods faster or less expensively.
  • No “retail winners” (and only 12 percent of all retailers) cited environmental concerns in their home delivery strategies, while 36 percent of consumers desired more “green” delivery options.

Want more? Download the report today, and see some very interesting findings for yourself. In all, one thing is clear: Amazon (and similar retailers) have changed the game. If brick-and-mortar operations are going to keep up, they need to be sure to align their operations with the expectations of their customers.