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Suddenly have to defend Amazon against retailers

Jeff Bezos goes on the Offensive: For 800 million dollars of the Amazon founder wants to shorten the delivery of 20 million products in the online business of two a day. Preferably those, about 110 million Prime customers, who pay per annum 119 dollars for the membership. With the investment of Amazon front hand no money, in the longer term, it should pay off.

Since the competitors are not able to go with this offer or want to, can Bezos its customer loyalty. He makes it harder for them to cancel the Prime membership. Second, Bezos has with the investment, the tax gifts to the government of Trump in the visor.

But behind the Scenes Amazon a harder fight. The company confirmed last week that the online profit is the business still profitable, but the growth will subside rates. Responsible for retail companies such as Walmart , Target or Macy's that were declared dead years ago, because you can supposedly keep up with the aggressive methods of Bezos.

Bezos is investment

The decision is forced, the delivery periods shorten from two to one day, is a consequence of the now re-hardened competitive struggle, says Frank Poore, CEO of the consulting company Commerce Hub. "It shows that Amazon now has to keep up with rival companies, the also free deliveries, Free returns and home deliveries offer." Although Walmart is not yet in a position to copy the one-day service from Amazon. But at least Walmart, according to market researchers must build in addition to the 156 existing distribution centers in the United States, only eight distribution centers, in order to be competitive. Also for Target the shorter delivery is the new Standard: The fashion house chain to supply the loyal customers already, within a day, if you buy for at least $ 35.

"This explains why Bezos is forced to re-investment in the last mile," says John Mercer, head of Research of core sight Research. This insight may explain why Walmart made fun of the Bezos-plans. "A one-day delivery without a membership fee (like Amazon) – that would be a real innovation," said Walmart on Twitter. This suggests that the company next plans to counter-attack in the Form of a free 24-hour Services. (Editorial Tamedia)

Created: 01.05.2019, 20:26 PM

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