Sep 16, 2014

The Shipping Wars: Do Online Sellers Benefit?

You may have seen the YouTube video preview (http://youtu.be/98BIu9dpwHU) posted by Amazon Prime Air eight months ago: It’s had more than 15 million views. The 1-minute, 20-second video tracks an Amazon order beginning with a customer clicking the “Prime Air 30-Minute Delivery” button online and ends with a drone gently placing a package at the customers doorstep (presumably within 30 minutes).
Of course, the video is just a “preview of coming attractions.” Amazon isn’t currently making deliveries via drone. The FAA disallows commercial use of drones (although some companies ignore the rule). But, once safety and privacy issues are worked out and insurance companies get a handle on underwriting such an enterprise, we can expect to see drones delivering packages nationwide.
Amazon isn’t saying what the cost to the consumer will be for 30-minute delivery. The unanswered question is: Will consumers pay the price? All indications are that most consumers aren’t willing to pay for super-fast delivery; at least not directly. Consumers’ No. 1 objection to buying online is delivery charges. Read More >>>


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