We all wanted faster speed in our computers and laptops...
then we demand for high speed internet…now, there is a trend …we want our stuffs
to be right on the door way when we wakes up after our late night online
shopping …and we don’t feel guilty!
So, is there a growing demand on such shipping services? Amazon has captured a huge market share regarding this feature on a $79
annually fees for next 2 days shopping. Amazon has built a very huge and logistic
infrastructure with enormous warehouses to all over the US from Arizona to Kentucky
just to cater to this service and many people and companies are utilizing this
Amazon service. Companies are offering fast shipping to clients while clients are
expecting their ordered items to be at their doorway almost the next day.
Now a 2-year-old service company call ShopRunner also offer
a similar service and annual fee as Amazon. The company even hired ex Yahoo,
C.E.O, Scott Thompson to run this company. The media is focusing on the
news regarding long time veteran Google Inc. executive Marissa Mayer to run
Yahoo as the C.E.O that it has forgotten a very important factor that could
change the standards of online shopping which is logistic and shipping. Imagine a 2 year old company hiring an ex
C.E.O from a Big company from Yahoo?! This shows how much potential the
shipping & logistic service has! From a business point of view, I think it
is cheaper for big companies to rely on Shop Runner services than building
their own because of 2 primarily reasons:
1)
It is cheaper – less overhead cost including
salaries, warehouses cost, etc.
2)
Efficiency – Let a professional company handles
the shipping and logistic so that the companies can focus on doing what they do
best which is selling products to consumers
But the fact is for an online business to
succeed, not only it has to have a good product or service, great marketing campaigns
but also fast shipping... Well, at least this is how I feel.
Will Scott be ousted as fast as the 2 days shipping beating this tenture in Yahoo which is 5 months or will ShopRunner run everybody over stirring a high demand for its service? Only time will tell ...
Roy
1 comment:
Maybe, it is not the next big thing. It is the big thing happening now. As I know, the success of Alibaba.com and other B2B and B2C business have created huge logistic demand in china. Logistic industry has grown rapidly during past decade, along with the internet business growing.
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