Amazon is testing same-day delivery from malls – RetailWire

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May 23, 2022

Amazon.com is testing a new program that leverages its network of Flex gig economy drivers to bring deliveries to consumers’ doorsteps from shopping malls.

Amazon is testing the program with participating retailers in a few malls in Las Vegas, Virginia and Texas, according to CNBC and Bloomberg.

Consumers who want same-day or faster delivery see products available locally. Once the item is ordered from the retailer through Amazon, one of their drivers delivers it.

An Amazon spokesperson said CNBC a handful of “existing Amazon sellers” participate in the program. Flexible drivers are operating as normal, but picking up orders from mall stores rather than Amazon delivery stations or supermarkets.

“We have been shipping from third-party stores for years,” the spokesperson said in a statement. “It’s another way for us to connect Amazon sellers with customers through convenient delivery options.”

Bloomberg said: “The program, if it becomes a permanent part of the e-commerce giant’s delivery options, could help Amazon expand the variety of products it has available for fast shipping.”

Amazon launched its Flex gig delivery service for its own orders in 2015 and Delivery Service Partner, which uses contractors driving Amazon Prime vans, in 2019. In early 2021, Amazon confirmed that the majority of orders from its platform were delivered internally.

Amazon stocks its own city warehouses with merchandise from select third-party retailers to ensure prompt delivery. In April, he launched Buy With Prime, which allows third-party retailers to leverage Amazon’s shipping and fulfillment network for orders placed on their own site.

Amazon’s push for same-day mall delivery could put pressure on leader on-demand delivery providers like DoorDash, Uber’s Postmates and Instacart. Instacart has added a wide array of non-food retailers, including Sephora, Best Buy, Staples, Walgreens, and Dick’s Sporting Goods, over the past two years. DoorDash, with its roots in fast food delivery, has partnered with Macy’s and JC Penney.

Among the biggest competitors, Target acquired Shipt in 2018 and Walmart last August launched GoLocal, an in-house delivery service with Home Depot, Chico’s FAS and Kelly-Moore Paint among its external customers.

In May 2020, Deliv, which provided same-day service to mall shoppers, closed and Target acquired Deliv’s technology assets.

DISCUSSION QUESTIONS: What do you think is behind Amazon’s test of same-day delivery from malls? Are third-party outlets likely to play a big role in Amazon’s same-day delivery ambitions?

Braintrust

“Another way for customers to receive products on their terms. Amazon is certainly well positioned to withstand this faster than anyone else in the market.”

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