Consumer Gains: Amazon's One-Day Delivery

Analysis By: Zohair Mirza

Link: https://www.wsj.com/articles/target-walmart-shares-take-hit-after-amazons-move-to-one-day-shipping-11556310486

Summary and Analysis:

Recently, when Amazon declared that its prime members will be getting One-Day shipping, that caused a decline in the shares of Target and Walmart. Rightly so, you order in the morning and by dinner, you have your order on the porch. No wonder it is so attractive to the consumer market. Understanding your consumer and deciding what is it that a company can deliver to make the consumer choose them over others.

Amazon is now looking to add ZIP codes and products to be able to implement. Clearly, it is a big step in that direction and an experience that is going to available more often. The logistics are something that still isn't as reliable and generally applicable to all of the United States. On paper, an idea of this sort seems doable but in reality, it will be a whole different scenario.

Just last year, online shopping accounted for 9.7% of all retail sales and this year it has grown to 14.2%. A growth like this in the sales industry is only bound to give birth to more and more competition. As Amazon plays its card now it is up to Target and Walmart to step up to the occasion to bring something to the table.

To make things interesting, Walmart then releases a statement on Twitter stating, "One-day free shipping...without a membership fee. Now THAT would be groundbreaking. Stay tuned." 

Does this mean Walmart is plotting something bigger? Will old-fashioned shopping will completely vanish? By the looks of it, the growth in the online shopping industry and the consumer's habits will take the grocery shopping out.