Amazon Prime’s new goal is to bring one-day shipping across the globe, starting in North America. How this can affect the small business owners, and how you can survive?
In Amazon’s 2019 Q1 earnings call, the company’s senior vice president and CFO, Brian Olsavsky said that they are currently working on evolving the Prime free two-day shipping program to be free one-day shipping.
$800 million to build infrastructure for faster shipping times
Last year (April 2018) Amazon jacked-up the Prime annual fee from $99 to $119, stating that it was needed because the paid subscription service was costing the company more to run. After a one year, Amazon is planning to spend $800 million in this year’s second quarter, to build the infrastructure needed to make the one-day shipping times possible.
Already Amazon offers same-day and two-hour shipping times for a limited number of products and for a certain zip-codes. And, now the company is expanding the number of zip-codes and eligible products to make one-day shipping the standard across North America.
According to the Amazon CFO, they expect to make steady progress quickly and through the year to complete the transition to faster delivery times.
The message to the small e-commerce business owners
Despite the last year’s price hike, Amazon saw more prime sign-ups in 2018 than in any other year. This proves the facts we have discussed in two things that matter most in e-commerce success.
The speed and convenience should be your primary focus for store design and operations. Amazon is reshaping the landscape of e-commerce with faster shipping times. And, people will start expecting a similar experience from any e-commerce store. So, if you do not focus on improving the speed and convenience to provide a matching experience, you will start losing this game.
One-day shipping may not be possible for small e-commerce businesses
Obviously, creating a one-day shipping program may be out of your league. So, how can you survive Prime’s one-day shipping program?
My personal opinion for survival is focusing on more about inbound marketing. There are a few things that small businesses can offer, which large cooperate organizations can’t provide. When I started the only USP of e-commerce business was the personal support for each and every customer.
And, that kind of personal approach can help you to attract and retain customers for your business.