Online retail giant, Amazon has released plans to further expand into the logistics and trucking industry with an on demand trucking app. According to details obtained by business insider the application will be similar to Uber which connects drivers and riders together and monetizes the connection. Amazon plans to connect truckers or transporters with shippers or those who need to ship out packages.
You could view this on demand application as being a win-win situation for both truckers and shippers. With the app, truckers could easily find new customers and increase their profitability. They could also cut time when they are out of work or lack goods to move. Shippers can benefit because they can easily find truckers to move their goods from one place to another.
According to Amazon, the Uber like application could be released sometime in 2017. If you think Amazon is not serious about entering this trucking market, then consider this. Amazon has recently purchased thousands of company trucks and even some cargo planes to transports packages and other goods. Should Amazon indeed develop this application it could control an entire logistics cycle of delivery. That would include shipping, transportation and final delivery. Currently Amazon contracts with a company called C.H. Robinson to arrange for deliveries between its warehouses and facilities and destinations to customers.
There are currently several companies that are operating in this space such as the C.H Robinson that currently provides a service to Amazon. If Amazon enters this market it would be in competition with these companies. There is no doubt that Amazon could really shake up the market segment and industry if it indeed entered.
One of the things that can happen if Amazon does enter the trucking and delivery marketplace is that its new app could eliminate middlemen that charge about a 15% commission fee for arranging and scheduling deliveries to loading docks and warehouses. Just like Uber cuts out taxi companies who act as middlemen, the Amazon on demand app could eliminate these middlemen in the trucking and delivery industry. The app could also provide directions, alert truckers of delivery opportunities and provide suggestions for a delivery route.
Amazon Prime Day is Amazon’s annual day to give massive discounts to a wide number of products from a plethora of different companies, and it looks like this year’s will benefit other companies as well, at least in terms of online traffic.
A company is lucky if it can direct 15% of internet traffic to its website to make an actual purchase, but it is an absolute truth that you make more online sales when you get more online traffic to your website. Certainly, it matters that you get high-income viewers to come to your website, but it’s equally important that you just get more people to view your site at all. So, Amazon offering deep discounts to many products offered on its platforms means that customers will potentially end up going to the websites of the producers of products they first viewed on Amazon. The average American consumer is just fascinating.
This, of course, is an unintentional but still free and beneficial service to other businesses that Amazon provides on its Prime Day, which gives Amazon itself millions upon millions in additional revenue due to Amazon’s ability to control its own prices. This increases Amazon’s market share, and it deepens the average consumer’s business relationship with Amazon as well. Overall, Amazon Prime Day is an economic blessing that benefits almost everyone involved, all the while giving customers lower prices that at almost any time during the year. How can you beat that?
Amazon has released more of their push buttons that order specific home goods, according to this article released by the Wall Street Journal. While Amazon is continuing to expand the line of products that can be ordered by the simple push of a button, the article questions whether consumers are actually interested in utilizing this service. The Amazon Push system, as the company calls it, allows consumers to reorder home goods like toilet paper, detergent, and other home essentials. Currently there are about fifty different products available, but Amazon hopes to grow the list in the coming years.
While the stats are remarkably unimpressive in terms of actual sales, there is a strategic component to this tactic that should not be overlooked. Amazon has already dealt a death blow to the bookstore industry, and products like e readers were once mocked before seeing widespread acceptance. Amazon is hoping that these buttons will catch on in a similar way, and increase the amount of people using Amazon as their primary method of making purchases. This is one shot that Amazon has taken at the brick and mortar grocery store. Some will remember their plan to deliver groceries as well, which was less than successful. This product is only available to customers that are already using Amazon Prime, the expedited shipping service offered by the company. However, Prime has never earned an annual profit, and continues to cost the company money. Amazon is hoping that these losses will pay off on the future.