Wednesday, October 6, 2010

Retailers to Challenge Amazon

Many retailers are now coming together to retaliate against Amazon.com Inc. by working with ShopRunner to get rid of shoppers' biggest concerns that waste more of their money: shipping costs. Working with ShopRunner, they are offering FREE 2-day shipping. This company is mostly working towards the costumers that wills pend the most. "-U.S. e-comerce market, one of the fastest-growing parts of the U.S. retail. Mike Golden, President of Shop Runner Inc. said his market research would appeal mostly to those who buy at least eight times in a year from retailers. Unfortunately I cannot find how ShopRunner is doing this business between all of these huge retailer companies because they are not revealing much information as of now.


Its evident that consumers have now come to expect free shipping on most online purchases, at least when they spend up to a certain point. I can personally say how outraged i get when I have to pay for shipping. I have grown accustomed to buying many different things online from usually and almost every time from Amazon.com. the reason i chose to talk about this article is because when we had out last guest speaker, the Leadership one, he referred to Amazon and how Barns and Noble hasn't yet had a comeback for Amazon because Amazon has been such a hit with the consumers that until now there is real competition. It will be interesting to keep track of how sales for for ShopRunner in the future and how Amazon's cliental shifts in the next few months/years. I personally think that Amazon will continue taking the lead in retailer shopping online because aside from free 3-5 day shipping it is also beginning a new program that if you do a free trial of it you receive your shipment for FREE 2 day shipping. Also I think that by placing other cheaper products on the side that recommend you to other sites, it ultimately helps the consumer get the same product for a cheaper cost. 



-Jacky Meltzer

Market Place section in the New York Times
Article: Retailers to Challenge Amazon
Dozens Including Babies 'R' Us, PetSmart to Combine Forces to One-Up 'Prime' Shipping Service

2 comments:

  1. I personally think that it will be difficult to compete with Amazon, for the majority of the people across the nation already have heard so much about it. Not only have they done such a good job at advertising their company, but they still manage to persuade more and more people to buy their products. Free day shipping is a crucial characteristic in their business that helps them do so well , with also giving customers the opportunity to get many things for great prices. In today's society, it is all about instant gratification and so, with free 2 day shipping, customers would love to take advantage of this awesome deal. I am not saying that ShopRunner will not do well for they too provide free shipments, but I just believe that Amazon is one company that will be extremely hard to compete with.

    -Tania Dabdoub

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