Amazon continues to look for ways to reduce their shipping costs while also providing opportunities for customers to order more products. Amazon is a perfect example of a company going through growing pains while facing increased competition. For example:
➡ Amazon is testing a program whereby Prime members are paid $10.00 to pick up packages from Kohl’s, Amazon Fresh, or Whole Foods Market stores. The problem with this strategy is that there aren’t that many pickup locations. I remain convinced that Amazon should either acquire The UPS Store which has over 5,400 independently owned locations; partner with Starbucks and place pickup lockers at select locations; acquire Dollar General and their 19,132 stores or partner with Dollar General for pickup lockers; acquire or invest in Via.Delivery Corp. that has 36,000 pickup locations; invest in Pickups which employs a team of Neighbors who can receive, hold, and deliver products within the neighborhoods they live; install high-quality vending machines like those from Magex, and load them with products most often ordered by Prime members; open automated micro-fulfillment and nano- fulfillment centers stocked with the most in-demand products. The more pickup locations for Amazon the better.
➡ Amazon is subleasing the six Amazon Fresh store locations planned for Minneapolis. This is one more example that proves the Amazon Fresh brand has generated little to no value for Amazon. These are possible options that will happen regarding Amazon’s grocery business: divest Whole Foods to Target; acquire regional grocery players like Hy-Vee, Inc., Lunds & Byerlys, etc., and slowly rebrand them; continue to trying to find a grocery format that generates excitement and that can be scaled; GO BIG and acquire Ahold Delhaize, Dollar General, etc.
➡ Amazon is using funeral homes to make deliveries in small towns across America. That’s true. Ima Shyster, VP of BS at Amazon stated in a recent interview, “Brittain Ladd challenges us to Think BIG. We chose to take his advice and think outside the box. Amazon can reimagine the funeral business. For example, we will soon unveil an Amazon Basics casket at a price point 75% less than similar models. We also believe funeral homes can become distribution centers and pickup locations for Amazon packages.”
I couldn’t resist writing the last paragraph; yes it is satire.
Amazon is beginning to make decisions that reek of desperation and not inspiration – that’s very dangerous.
I continue to believe that Amazon should go nuclear and find a way to acquire the United States Postal Service or buy the naming rights to post offices that will also give Amazon the ability to deliver their own packages to post offices and install Amazon lockers.
I admire Amazon for at least trying.
