Amazon’s Sunday Delivery Challenges Traditional Thinking - Modern Distribution Management

Log In

Amazon’s Sunday Delivery Challenges Traditional Thinking

The current revenue impact of Amazon on B-to-B may be limited, but its out-of-the-box thinking may challenge markets in the future.
lindsay-white
Author
Date

In a survey of MDM readers on the impact of Amazon on their businesses, nearly two-thirds of distributor respondents said the e-tailer had not had a direct impact on their revenues. About 20 percent said they weren’t sure.

Less than half of manufacturers that responded said it had not had a direct impact on their revenues; 18 percent said they weren’t sure.

While the current impact of Amazon and its B-to-B industrial supplies platform seems to be minimal – at least from a financial perspective – the truth is that Amazon's willingness to innovate in how it serves its customers will have an impact, especially in markets where businesses are reluctant to try new things.

This week’s announcement from Amazon that it will start shipping to customers on Sundays through a partnership with the U.S. Postal Service is its latest example of thinking outside of the box. For now, the service will be in Los Angeles and New York, but reports say that the company plans to expand it nationwide over the next couple of years.

Combined with plans to implement same-day shipping, this development further challenges traditional thinking about commerce – online and off. Amazon Prime membership, a program where customers pay $79 a year for free two-day shipping on most items, has largely succeeded at least on a revenue level. According to several analyses (including this one from 2013 and this one from 2011) Amazon Prime members’ revenue growth may be up to two times that of those who are not Prime members. It has also further tied customers to the Amazon platform.

For Amazon, it’s all about making it easier for the customer to buy, removing all excuses from clicking the Add to Cart button. There are lessons to be learned from this way of thinking, no matter how you feel about the online giant.

As we’ve reported, customer expectations for user-friendly e-commerce and distribution network efficiency have already started to shift. “In many ways, Amazon has become synonymous with e-commerce,” Don Schalk, president of specialty building products distributor C.H. Briggs Co., told MDM in Amazon & Google’s B-to-B Play.

Read more about MDM readers’ take on the impact of Amazon and Google on B-to-B markets in the recent article, Amazon & Google’s B-to-B Play.

I spoke with Chester Collier, senior vice president of global distribution for manufacturer Walter Surface Technology, for this month’s audio segment of 7 Minutes With … on the importance of innovation in both products and services. Look for that interview at the end of this week at www.mdm.com/executivebriefing.

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.