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Amazon is rolling out "customer service as a service". They've used this playbook for: 1. AWS 2. Trucking (http://freight.amazon.com/ ) 3. Small parcel delivery (they pickup and deliver 100% nonamazon orders) 4. Warehousing/fulfillment (FBA) https://www.ecommercebytes.com/C/blog/blog.pl?/pl/2020/7/1593649366.html …
It's hard to generalize, but let me try: First, build scale in support of solely Amazon's demand. Then, open the platform in a limited way to others. Use that add'l demand to drive scale again. Repeat this cycle until you are the biggest player in the industry with lowest prices
In this way you can offer a competitive price vs. the competition while enjoying a healthy profit margin.
Amazon is always their own "first and best customer" https://stratechery.com/2017/amazons-new-customer/ … Grocery will be no different.
It will be interesting to see how long it takes them to be successful in this space. Despite the coronavirus acceleration, it still feels like we are years away. It's also an EXTREMELY competitive space with Kroger, Walmart, and others investing heavily and competent themselves.
What is the parcel service for non-marketplace orders? Link?
It is called "Amazon Shipping" which...makes it very difficult to search on Google. https://www.digitalcommerce360.com/2020/05/26/amazon-is-the-fourth%E2%80%91largest-us-delivery-service-and-growing-fast/ …
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