Amazon introduces big initiatives targeting stores |
Written by Jeremy Burns & Deonne Lindsey |
Tuesday, 24 December 2013 11:56 AM America/New_York |
Kindle retailer program, Sunday delivery and the advent of high-tech drones could shake up retail Amazon.com has recently introduced a slew of changes that impact retailers, their customers and the marketplace. The development that most directly affects retailers is the Amazon Source program, billed as a partnership with retailers—including independent bookstores—through which brick-and-mortar stores can sell Amazon’s Kindle. The program offers two options: the Bookseller Program, which allows retailers to purchase Kindles for resale at a 6% discount, while also earning a 10% commission on every e-book purchased on the device for two years after purchase; and the General Retail Program, which offers retailers a 9% discount on the devices, but with no e-book commission. The online giant also is working with the U.S. Postal Service to deliver packages to Amazon Prime members on Sunday, starting in the Los Angeles and New York City areas. Amazon has also raised the bar for free Super Saver shipping to $35 instead of the $25 minimum order consumers have long been accustomed to from one of the Internet’s most-trafficked shopping sites. When Amazon began Super Saver shipping, it was a factor in the shift many online retailers made to cheap or free shipping. Speculation is already whirring as to whether or not the move may push more shoppers toward Amazon’s Prime membership, which offers free two-day shipping after a $79 annual membership. Others imagine this may put a dent in Amazon’s business. The final piece of big news to come from Amazon’s camp was the company’s unveiling of a revolutionary new delivery method: flying drones. A prototype drone was revealed by Amazon CEO Jeff Bezos on CBS’s 60 Minutes, along with the company’s plans to roll out the Amazon Prime Air service in the next several years. Drone helicopters would transport packages of up to five pounds from one of Amazon’s expanding number of fulfillment centers across the country to a customer’s doorstep in 30 minutes or less. The company faces a number of hurdles—from Federal Aviation Administration rules on drone aircraft to the prototype’s range limitation of 10 miles—before the program can get off the ground. |