There is no heavy-hitter so far that has come to match Amazon in the e-retail industry. They are the world's largest internet retailer and one reason is that they have an effective shipping program, namely Amazon Prime. Now, a company it owns, Quidsi Incorporated, is set to follow suit and implements its' own shipping program this year.
Quidsi Incorporated has just launched its' very own shipping program which offers its' customers the option of two-day deliveries reported Internet Retailer. The new shipping program is free, however, Quidsi will eventually charge an annual fee. Shoppers can sign up for a free three-month trial with a company code at checkout. More details about the Quidsi shipping program are not being disclosed, stated a spokeswoman for the company in the report, since it is described as being in pilot mode right now. The program applies to shopping across all of their 10 e-commerce sites, such as Diapers.com, Wag.com and Look.com.
“We will send you special insider deals every week,” Quidsi promises on its sites. There is no minimum purchase required to receive the free two-day shipping for the program. For shoppers not participated in the program, they can still receive free two-day shipping for a minimum purchase of $35. Amazon Prime has an annual membership fee of $79, for which customers receive two-day shipping on all orders and access to thousands of TV shows and films. With Quidsi, Amazon shows itself as on the cutting edge of e-retail and will continue to pursue major growth.
For the first quarter of 2013, growth did slow down for the online giant. Amazon experienced 22% growth in the first quarter, opposed to 36% growth in the first quarter last year. Inspite of the lower revenue, their profit margins did increase and one of the reasons was lower shipping expenses. Therefore, the shipping aspect of Amazon's business is a major factor in the outcome of its' future growth. It is clear with what the company is implementing with Quidsi, that a number of steps are being taken to make shipping their products efficient, easy and profitable.
Amazon continues to grow relative to their distribution centers as well, which helps their shipping strategy. Currently, Amazon has 46 warehouses in the US. They are reported to be building more and should have 54 distribution centers this year. With the number of distribution centers being built throughout the country, many experts believe Amazon is gearing up to move beyond 2-day shipping, to offering same-day delivery to its' customers. Same-day delivery is being testing by a number of retailers nationwide, such as Wal-Mart, eBay, Target, Macy's, and others. Online business has an opportunity to offer a faster delivery service than 2-day delivery and shoppers can have their products at their doorstep within hours. It could become a shipping offer by Amazon.
Same-day courier services like A-1 Express can assist e-retailers, such as Amazon, with shipping and delivery logistics solutions nationwide. This Portland Courier is able to perform same-day delivery to customers that are local to retail company distribution centers, stores, and warehouses. As e-commerce continues at develop, an optimal delivery system by a same-day courier will be just what e-retailers and online shoppers are looking for, especially for return shipments.
Reference: 5.9.13, Internet Retailer, Thad Reuter, More free shipping from Amazon