One of America’s top online retailers, Amazon, expanded it’s online delivery option and everyone is impressed. However, because of this move the well known retailer directly place itself against it’s rival retailer, Walmart’s delivery service. There is a same day delivery service option available for certain products, especially the perishable goods.
Benefits of the same day delivery option
Individuals who are subscribed to Amazon.com’s Prime service, now has an opportunity to received their strawberries, milk, meats and frozen dinners on the same day they place their orders. This is after the company decided to expand on its fast-delivery option it has pertaining to perishable food items. This announcement was made on Wednesday by the retailer.
This is the recent move the retailer took to have a competitive advantage when it comes to competing. It now stands a far chance to compete against other delivery services such as Walmart+ (WMT.N), opens new tab, as well as Instacart. In addition, when it comes to the Prime members, this same-day delivery service is free. These are the members who pay $14.99 per month, or an amount of $139 annually for order that would amount to $25 and more.
On the other hand, consumers without the Prime membership are expected to pay a free of $12.99. This does not matter what the size of their respective orders are, they will have to pay this fee to make use of the same-day delivery service. When it comes to Walmart, the retailer’s membership service, Walmart+ is still at a lead. It cost consumers $98 a year and offers the option of the same-day delivery in under three hours. What is more incredible about it that some orders can even arrive in merely 30 minutes.
Amazon Versus Walmart Deliver Services
There are many benefits of this same day delivery option, especially because it will make things much better for consumers who orders perishable goods. This perishable food service delivery option is available in 1,000 United States cities. There is talks about the fact the delivery service will be expanding to 2,300 more United State cities by the end of this year.
The retailer is competing against powerful rivals like Walmart+ and the Instacart in grocery delivery. Currently, Amazon is investing an amount of $4 billion to expand the same-day and the next-day delivery options in rural areas. Also, as the retailer’s shares rise; it is safe to say that the shares of grocery-delivery competitors are falling.
How the system works
Since Wednesday, several Amazon consumers situated in more than 1,000 United States cities were able to receive same-day delivery for their perishable food items. Some of these cities include location such as Phoenix; Raleigh, North Carolina, and Tampa, Florida.
In addition, the consumers who are subscribers at Prime; their perishable food orders were carried out by Amazon Fresh or Whole Foods Market. However, these consumers had to pay an additional $9.99 per month for their Prime subscription, in order to receive the option of free deliveries on grocery orders. It was stated by the retailer’s website that the fees these members had to pay was more than $35. Now, the additional service will complete orders placed by members through its same-day delivery system.
According to Blake Droesch, an analyst with eMarketer, this massive move Amazon took marks a significant expansion for the retailer. Specifically, when referring to the digital grocery service, this is where significant change will occur due to this move. Also, the availability of this same-day delivery option that will be available for free to the Prime members, is a plus for the company. Mainly, because Amazon has a big Prime membership base and it might even grow more with this free option of same-day delivery.
