Bye-bye Two-Day Shipping, Hello One-Day Shipping 📦

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Last week Amazon announced a bold plan to roll out free one day shipping for all of its Prime members. The plan, with an expected cost of $800 million, will be progressively rolled out in the US over the next couple of months.

Not so fast, says Walmart

Not all traditional retailers were shaken by Amazon’s announcement. Walmart posted this cheeky tweet hinting that they have something in the works to counter Amazon’s bold strategy. According to some, Walmart could match Amazon’s one day shippingwithout much difficulty thanks to its existing supply chain infrastructure.


SKEPTICAL:

MarketWatch: Labor union raises concern over Amazon’s move to one-day shipping

Business Insider: Walmart hinted it would add free one-day shipping to counter Amazon — and it reveals a hidden advantage

Outlets skeptical of Amazon’s plan highlight two major issues. The first is that traditional retailers like Walmart and Target may have an inherent advantage as their thousands of stores across the US could function as small scale distribution centers to facilitate one-day shipping. The second is regarding the burden this will place on Amazon’s warehouse workers. The Retail, Wholesale and Department Store Union has criticized the plan over concerns that this may increase the already heavy workload faced by Amazon’s warehouse workers.

GAME CHANGING:

CNET: Amazon raises the stakes again with Prime one-day shipping

USA Today: Amazon's 1-day free-shipping plan changes the game again

Outlets that label Amazon’s plan a game-changer contend that the move will further Amazon’s dominance over traditional ‘big-box’ retailers. They emphasize that the share prices for both Walmart and Target dropped shortly after Amazon’s plan became public. Furthermore, these outlets claim that this move by Amazon puts the onus on traditional retailers to develop a competitive strategy to counter Amazon’s.


Where's the common ground?

While some are excited and some are concerned about Amazon’s plan, these outlets do share some common ground. Outlets from both sides expressed concerns over whether Amazon’s one day shipping will be reliable, citing that Amazon’s two-day shipping is unreliable at times – with some packages being delivered ahead of time, and others arriving a few days late.

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