Getting Closer to Your Customers: Is Amazon’s New Fulfillment Strategy a Silent Killer?
IF A TREE FALLS IN A FOREST AND NO ONE IS AROUND TO HEAR IT, DOES IT MAKE A SOUND?
Yes, of course it makes a sound. But how about if Amazon just added a series of 100,000-square-foot Kiva-enabled in-market facilities in several major cities like Phoenix, Philadelphia, Dallas and Orlando? That’s exactly what the e-commerce titan did last week, enabling it to greatly expand its same-day delivery service by slashing shipping and transportation times. AND MORE ARE COMING.
The purpose is to act as a local fulfillment center and depot. Each facility will ensure delivery of 100,000 SKUs by predefined daily times and will also serve as a transport depot for up to 3 million additional SKUs available to same-day customers in those local markets.
So, if Amazon ups their same-day game and no one responds, is there a sound? Yes—the sound of your customers departing your website and going elsewhere in search of speedier delivery.
What can sellers do to expedite their delivery times and ultimately retain their customer base?
- Adopt a BOPIS or BODFS strategy. If you have lots of brick-and-mortar stores, implementing a “buy online pick up in store” (BOPIS) or “buy online deliver from store” model will enable you to get your products closer to customers in a shorter time (and at lower costs).
- Explore in-market fulfillment capabilities. Utilizing fulfillment centers closer to your customers will reduce both transportation times and costs. If you do not have a lot of stores or the proper shipping and distribution operations in place to support next- or same-day deliveries, enlist a third-party partner with the distributed logistics expertise required to help you build a successful in-market fulfillment network.
Tompkins Fulfillment Services specializes in helping companies design an optimal in-market solution with the right partners, technologies and execution to ensure successful fulfillment operations. Contact us today to learn more.