Will Amazon deliver same-day results for GNC, PacSun and other retailers?

Discussion
Photo: Amazon
Aug 02, 2022

Amazon.com Prime members in 10 cities can now buy merchandise from local retailers in their market and get their orders delivered the very same day.

The retailing and technology giant said that Diesel, GNC, PacSun and SuperDry are among the retailers that have signed up for the service, which is available in select zip codes in the Atlanta, Chicago, Dallas, Las Vegas, Miami, Phoenix, Scottsdale, Seattle and Washington D.C. markets.  Amazon said that Sur La Table and 100% Pure will join the service in the coming months.

Prime members who spend $25 or more on qualifying purchases can get their items delivered for free. Those spending less than $25 will pay a fee of $2.99. Some of the participating retailers in the program also give Prime members the option of buying online and picking up their orders in-store.

Customers can use the Amazon app or go to the online site to place same-day delivery orders, picking items from a curated selection of products available from participating retailers in their area. Amazon transmits the order to a local store where it is fulfilled from inventory at the location. An Amazon delivery partner picks up the order from the store and delivers it to the customer the same day.

Will Amazon deliver same-day results for GNC, PacSun and other retailers?
Photo: Amazon

“We see high potential in our expanded seller partnership with Amazon, which includes delivery directly from select PacSun retail locations,” said Mimi Ruiz, vice president of ecommerce at PacSun, in a statement. “This is one more way for us to offer our customers the styles they want and love, when they want them.”

“The expansion of Amazon’s Same-Day Delivery to include beloved brands delivered directly from nearby retail locations is just another way we are offering customers even greater selection, at faster speeds,” said Sarah Mathew, director of Amazon Delivery Experience. “We are excited to see this new model come to life and look forward to adding more brands, stores and locations to the program.”

Amazon has not specified where it will roll out the service next or how rapidly it plans to scale the same-day option.

DISCUSSION QUESTIONS: Will same-day delivery for well-known retailers entice other chains to sell on Amazon’s platform? Will this service add significantly to the perception that an Amazon Prime membership is a good deal?

Please practice The RetailWire Golden Rule when submitting your comments.
Braintrust
"This initiative seems like a winner -- until consumers realize that they don't really need same-day delivery."
"Yes, Amazon is becoming an ecosystem of resources to shoppers. You could say it is a second metaverse and one that is perhaps more important than Facebook."
"What is this really all about? Sounds like Amazon is creating a 'need' that doesn’t really exist."

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20 Comments on "Will Amazon deliver same-day results for GNC, PacSun and other retailers?"


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Mark Ryski
BrainTrust

Same-day delivery has become an expectation, and especially for consumers of the largest brands. Using Amazon’s platform presents a very compelling proposition, not only for the brands but for the fans of the brands. Additionally, it will expose these brands to loyal and active Prime customers. I expect to see more brands jumping on Amazon’s same-day delivery bandwagon.

Neil Saunders
BrainTrust

This is a nice benefit for the consumer (at least those who need such fast delivery) and it is also a win for Amazon which is able to sweat its existing logistics infrastructure harder and embed it into more services. All that said, there is the usual cautionary tale of other retailers becoming overly reliant on Amazon and I am always curious how much super-fast delivery erodes margins – although apparel and supplements have far richer margins than many other categories so there is some headroom.

Paula Rosenblum
BrainTrust

When is some regulator, stockholder or someone going to declare that it’s time to break Amazon up? It’s a logistics company, a retailer, a marketplace, an electronics maker, a cloud computing provider and a production company. Of these, I think one business is profitable. It just doesn’t seem right to me, and no — if I were a retailer I would not participate.

Bob Amster
BrainTrust

For those consumers who “need” same-day delivery, this will be an attractive proposition. For the participating brands, it removes the burden to build or enhance their distribution and delivery network and still promise same-day delivery. This initiative seems like a winner — until consumers realize that they don’t really need same-day delivery.

Shep Hyken
BrainTrust

Once again, Amazon creates a system, process, or technology and allows others to use it – for a fee, of course. I like that one of the most innovative companies on the planet shares, sells, leases, licenses, etc. what they could keep to themselves. Yes Amazon makes money, and they should. Retailers that are taking advantage of Amazon’s offerings might not be able to duplicate this on their own. This is a win/win for both sides. And in the end, the customer/consumer also benefits (win/win/win).

Georganne Bender
BrainTrust

There have been times for all of us when we couldn’t get to the mall, and didn’t have time to order online and wait days for the package to arrive.

One thing bothers me: The article states that shoppers will be “picking items from a curated selection of products available from participating retailers in their area.” That doesn’t make sense. Why a curated selection and not whatever is in stock? Still, I like this idea even though it falls into what I refer to not-so-jokingly as Amazon’s quest for total world domination.

Ken Morris
BrainTrust

Of course retailers will offer same-day delivery via Amazon. It’s another bolt-on sales channel, and Amazon will deliver in every sense of the word. Same-day delivery is a great perk for customers. They may not always want it, but it’s a huge plus to know it is available. I think this will start a chain reaction and Amazon will add more brands to their platform. Retailers of the world, resistance is futile.

Richard Hernandez
BrainTrust

It is an investment — and I hope they can sell enough extra product to offset the investment. I don’t know that it adds any value to buying from those retailers.

Jeff Sward
BrainTrust

What is this really all about? Sounds like Amazon is creating a “need” that doesn’t really exist. Is Amazon trying to weave itself into the logistics of “real” retailers so that the system can’t operate without them? I understand the $2.99, but what is this service costing the retailer? What does the math of the whole transaction look like? Is this another race to unprofitable retail?

Michael La Kier
BrainTrust

Adding well-known retailers to the Amazon platform likely benefits Amazon more than the retailers. It’s not likely that many shoppers of Diesel, GNC, PacSun, and SuperDry were holding back purchases because same-day delivery was not offered. For the most part, these are not impulse purchases that are urgently needed. But it does add to the value proposition bundle from Amazon Prime.

Brandon Rael
BrainTrust

The scale, reach and authority of Amazon’s supply chain and same-day distribution capabilities are world-class. It’s a brilliant play by the company to extend these as a service to other retailers. As customers increasingly expect same-day delivery capabilities, it’s a win-win for Amazon and the retail partners. It’s becoming challenging for retailers to avoid Amazon’s ecosystem and sphere of influence, especially as Amazon is now synonymous with same-day delivery.

Rather than investing in supply chain and micro-fulfillment infrastructure, technology, capabilities, and resources, retailers would be wise to partner with Amazon for their logistics services and take advantage of the extra exposure that the Amazon platform offers. In addition, this makes the Amazon Prime membership offers even more appealing to those on the fence about joining.

Rich Kizer
BrainTrust

It has gotten to the point that every morning I wake to see what Amazon is surprising us with. Same-day delivery — ho hum. Now other retailers using Amazon to sell through, with same-day delivery — this IS the brave new world. Can’t wait for tomorrow.

Peter Charness
BrainTrust

The pervasiveness of Amazon anywhere and everywhere is actually a bit scary. I’m with Paula on this one.

Ken Lonyai
BrainTrust

I’m shaking my head on this one…

There once was a leading toy retailer called Toys “R” Us that believed that it “partnered” with Amazon to handle its e-commerce. If my recollection is correct — that toy company is long gone. They were used by Amazon to gauge and learn the toy market, then chewed to bits and spit out. Amazon does this regularly with its marketplace merchants. Are these companies expecting that they will not be used and abused? Are they special?

Amazon will gain huge data insights into what these companies are selling, into what markets/demographics, and even to whom. That data will certainly pave the way for Amazon to adjust its offerings, target their customers, and ultimately crush these companies. It’s like the condemned getting to choose their means of execution and then handing that means to the executioner.

patrickjacobs
Guest

This convenience use case makes sense, other retailers will follow suit because of the growing effort to provide a blended shopping experience to customers. The ability to nurture loyalty through the Amazon platform is also interesting, I think the same-day delivery model will be successful. The overall perception of the value Prime memberships provide will also increase, this vertical should be manageable to scale.

Joel Rubinson
BrainTrust

Yes, Amazon is becoming an ecoystem of resources to shoppers. You could say it is a second metaverse and one that is perhaps more important than Facebook.

James Tenser
BrainTrust
When I learned about this new delivery service from Amazon, my first question was, “Do shoppers really care about same-day delivery of items from these retailers?” Then I pivoted to the scenario of Amazon as a “common carrier” of deliveries from local stores. Their vans are already passing through most neighborhoods several times per day, so why not add a handful of packages with near-zero incremental cost of delivery? Then again, Amazon loads its vans at distribution hubs. Those vans (as far as I know) do not pick up items along their routes. This begs the key question: How will items ordered from the participating retail stores get put on those vans? One scenario: Amazon institutes separate pickup routes to gather orders from those stores several times per day and bring them back to local hubs for loading onto delivery vans. Or — and this would be a somewhat fancier innovation — some Amazon delivery vans make the pickup stops along their routes. Either way, the orders would need to be rapidly “cross-docked” onto the… Read more »
Brian Numainville
BrainTrust

Same day delivery is, in many shoppers’ minds, no different than getting something at a store the same day. While there is something to be said about hitching your wagon to Amazon, this does provide a service that shoppers want and expect. Many times I make a purchase based on how fast I can get the item, and if I can get it via an online service almost as fast as going to the store to get it, I’m sold.

Brad Halverson
Guest

Amazon offers up a win-win for brands or retailers just don’t want to get in the game and expense of same or next day delivery — but realizes a good sales upside because their customers want it. Shoppers have gotten to love Amazon Prime.

Not every retailer or brand should want this, and that’s OK. They will need to decide alternatively how their customer experience is going to delight and excite customers, both online and in store.

Anil Patel
BrainTrust

Amazon has a history of analyzing the brands and their products featured on its marketplace for the sake of its own in-house brands. Fashion retailers need to be aware of the fact that Amazon has already begun rolling out its own physical fashion stores. After learning in-depth about BOPIS and same-day delivery, Amazon might use this knowledge to augment its own stores. Therefore, there may be a substantial risk involved for retailers.

wpDiscuz
Braintrust
"This initiative seems like a winner -- until consumers realize that they don't really need same-day delivery."
"Yes, Amazon is becoming an ecosystem of resources to shoppers. You could say it is a second metaverse and one that is perhaps more important than Facebook."
"What is this really all about? Sounds like Amazon is creating a 'need' that doesn’t really exist."

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