Retail
Amazon Offers 2-Hour Shipping as Holidays End
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Amazon.com Inc. (NASDAQ: AMZN) wants to get one last slug of revenue before the holiday clock hits midnight on its way into Christmas. Its logistics systems make it possible for Amazon to do something other retailers can’t do. Amazon offers two-hour delivery until midnight.
The opportunity is only available to people who are members of Amazon Prime, and it includes $10 off some of the items shipped and several other discounts. The two-hour delivery service presses Amazon’s own products, like Fire tablets, and pushes them hard. They are among the most visible products for the Prime Now promotion
The program is a clever way to get desperate shoppers to sign up for Prime. It costs $9.99 a month, for which members get a combination of streaming video, photo storage, a music service and free two-day shipping. Outside analysts believe Prime members are much more likely to shop at Amazon regularly, and they are more likely to shop at Amazon than at other e-commerce sites. It is one of the most famous and widely regarded customer loyalty programs in the world.
Much of the Prime Now service is for local restaurant and grocery store delivery. And the number of items available otherwise is highly limited:
Prime Now offers 25,000+ items across 25 categories, including household items, groceries, electronics, gifts, seasonal items, and more. Plus, get restaurant and local store delivery in select cities.
The service is also available in a very limited number of ZIPÂ codes, all in and around big cities.
Prime Now is indeed for the desperate. Some people may pay well beyond their gift budgets when they have forgotten to buy a gift or have procrastinated too long. At that point, shoppers have two options. One is the brave malls and stores at 7 p.m. or 8 p.m. and hope to find something on the shelves. This gives an advantage to retailers like Wal-Mart. The other is to join Prime and stay at home.
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