Future of Shopping – Order Online, Same Day Delivery

In a <a href=”http://www.slate.com/articles/technology/technology/2013/06/google_shopping_express_amazonfresh_which_mega_company_will_succeed_in_revolutionizing.html”>Slate Magazine article</a> , <a href=”http://www.slate.com/articles/technology/technology/2013/06/google_shopping_express_amazonfresh_which_mega_company_will_succeed_in_revolutionizing.2.html”>The Glorious Future of Shopping</a> , Author Manjoo, describes a perfect storm of immediate shopping necessity:  his household ran dangerously low on toilet paper, paper towels, diapers and dishwashing soap, all at the same time. when he had no room in his schedule or inclination to put all else on hold for a shopping excursion.

As he describes it, his plight had a happy ending:  ” In April, I got into the “pilot test” for <a href=”https://www.google.com/shopping/express/about/index.html?gclid=COWyiN2mzbcCFYiDQgodxUgAdw” target=”_blank”>Google Shopping Express</a>, the search company’s effort to create an e-commerce service that delivers goods within a few hours of your order. The service, which is currently being offered in the San Francisco Bay Area, allows you to shop online at Target, Walgreens, Toys R Us, Office Depot, and several smaller, local stores, like Blue Bottle Coffee. Shopping Express combines most of those stores’ goods into a single interface, which means you can include all sorts of disparate items in the same purchase. Shopping Express also offers the same prices you’d find at the store. After you choose your items, you select a delivery window—something like “Anytime Today” or “Between 2 p.m. and 6 p.m.”—and you’re done. On the fateful day that I’d run out of toilet paper, I placed my order at around noon. Shortly after 4, a green-shirted Google delivery guy strode up to my door with my goods. I was back in business, and I never left the house.”

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….Similar to my experience when I first got Amazon Prime, it has transformed how I think about shopping. In fact, in the short time I’ve been using it, Shopping Express has replaced Amazon as my go-to source for many household items. I used to buy toilet paper, paper towels, and diapers through Amazon’s <a href=”http://www.amazon.com/gp/subscribe-and-save/details/” target=”_blank”>Subscribe &amp; Save</a> plan, which offers deep discounts on bulk goods if you choose a regular delivery schedule. I like that plan when it works, but subscribing to items whose use is unpredictable—like diapers for a newborn—is tricky….

After using it for a few weeks, it’s hard to escape the notion that a service like Shopping Express represents the future of shopping… It’s not just Google: Yesterday, <a href=”http://www.reuters.com/article/2013/06/04/net-us-amazon-grocery-idUSBRE95311Q20130604″ target=”_blank”>Reuters</a> reported that Amazon is expanding AmazonFresh, its grocery delivery service, to big cities beyond Seattle, where it has been running for several years. Amazon’s move confirms the theory I floated a year ago, that the e-commerce giant’s long-term goal is to <a href=”http://www.slate.com/articles/business/small_business/2012/07/amazon_same_day_delivery_how_the_e_commerce_giant_will_destroy_local_retail_.html”>make same-day shipping the norm for most of its customers</a>.
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As I learned while using Shopping Express, the plan could be a hit. If done well, same-day shipping erases the distinctions between the kinds of goods we buy online and those we buy offline. Today, when you think of something you need, you have to go through a mental checklist: <em>Do I need it now? Can it wait two days?</em> <em>Is it worth driving for?</em> With same-day shipping, you don’t have to do that. All shopping becomes online shopping….

But that’s just the start. The longer-term promise of same-day shipping is that it will bring the same revolution to groceries that Amazon once brought to books and music. That advantage is remarkable selection. At supermarkets, shelf space is finite and expensive, which is why you can rarely find everything you need at a single store…
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Google and Amazon are trying to solve this problem in slightly different ways. Google’s service doesn’t maintain any local warehouses. Instead, everything you buy comes directly from a local store. To improve efficiency, the system tries to get your goods from the store located closest to your house. (The items I ordered from Target were shipped from a store 6 miles from my house.) Also, unlike AmazonFresh, Google Shopping Express does not yet sell milk, produce, and other perishables, but the company is working on ways to make that possible. It also seems likely that Google will try to expand selection by contracting with lots more retailers. The company seems to be thinking about the program in the same way it thinks about its online advertising system—in the future, any store that wants to join will be able to sign up to sell its goods through the system. In the same way that Google collects a few dollars when it sends a customer to an advertiser’s site on its search engine, Google takes a commission from the store for every purchase made through Shopping Express.
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<a href=”http://astore.amazon.com/grocery05cf-20″ target=”_blank”></a>
<p class=”wp-caption-text”>Amazon Fresh Delivering Groceries</p>

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AmazonFresh also contracts with local retailers. Its service features items from <a href=”https://fresh.amazon.com/Category?cat=seattle&amp;pf_rd_s=center-4&amp;pf_rd_p=1415997862&amp;pf_rd_t=101&amp;pf_rd_i=21&amp;pf_rd_r=1VBEXM7ZVR679SM4WWFN” target=”_blank”>dozens</a> of restaurants, ethnic supermarkets, meat and seafood stores, and bakeries in the Seattle area. But unlike Google, Amazon also maintains its own warehouse of items that it sells directly to customers. Many of its fruits and vegetables fall into this category. Keeping its own goods allows the company to maintain tight control over quality. One nice feature is an item-by-item rating for every produce item: Today’s <a href=”http://fresh.amazon.com/product?asin=B001PLIUPK&amp;qid=158314942&amp;rank=4&amp;sr=1-4&amp;tag=img” target=”_blank”>avocados</a> score only a 2 Radish rating (out of a potential 5), which means they’re just average, while the <a href=”http://fresh.amazon.com/product?asin=B001V9BR5Q&amp;qid=158315400&amp;rank=1&amp;sr=1-1&amp;tag=img” target=”_blank”>watercress</a> are looking great with 4 Radishes….

Which service will win out, Google’s or Amazon’s? So many firms have failed to conquer the same-day shipping business over the years that it might seem wise to bet against both of them. Especially when it comes to perishable goods—where profit margins are notoriously thin and customer expectations are incredibly high (you’ll never shop at a store that breaks your eggs)—it won’t be surprising if both companies find it impossible to offer services worthy of their ambitions.

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On the other hand, the reward for getting same-day grocery service right could be incredible, especially for Amazon. If the online giant can increase its selection while keeping down prices, it would transform itself from a company that you interact with once or twice a week into one that you go to every day. It would become the world’s most ubiquitous retailer. But even better, it would be the world’s most beloved retailer—because, believe me, when a guy brings toilet paper to your house just when you need it, you love him. Whatever the costs, however daunting the challenges, that’s too big a prize for Jeff Bezos to ignore.”

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<div class=”pagebreak section”>For more, go to <a href=”http://www.slate.com/articles/technology/technology/2013/06/google_shopping_express_amazonfresh_which_mega_company_will_succeed_in_revolutionizing.2.html”>The Glorious Future of Shopping</a></div>
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<div class=”pagebreak section”><a href=”http://astore.amazon.com/grocery-aw-20″>Amazon Grocery And Gourmet Store, Delivery</a></div>
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