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Home / Business / 2 reasons why it might be time to drop Amazon Prime – The Motley Fool

2 reasons why it might be time to drop Amazon Prime – The Motley Fool



Amazon (NASDAQ: AMZN) has set the standard for the delivery of online orders. The company has made delivery the norm within two days and is now leading the next day's delivery, forcing its main competitors Walmart (NYSE: WMT) and Target [19659004] (NYSE: TGT) follows.

The company was a leader and has offset its costs by causing people to pay for the privilege of delivering its prime memberships two days (and now one day). Subscription costs of $ 119 per year, or $ 12.99 per month, allow members to fully deliver two items in one day, with more than 100 million items and other perks it may no longer be necessary. Many Prime members could stop the service and not really lose anything.

  An Amazon Prime semi-trailer.

Amazon has real competition in the delivery of Walmart and Target. Source: Walmart.

. 1
Walmart Is Aggressive

Walmart's digital team, led by Jet.com boss Marc Lore, has admitted that it can not compete with Prime. To make its offer attractive, Lore has taken the bold step of making Walmart's delivery free to people placing $ 35 or more in qualified orders within two days.

This is not as convenient as ordering from Amazon in any quantity you want. However, it is a good deal as consumers do not have to pay an annual or monthly fee. Walmart's offering covers only a few million items – basically $ 100 million or more than Amazon – but for some, the selection is more than adequate.

Walmart also plans to shorten the delivery time to one day and tested how food can be delivered directly to consumers' refrigerators. The retail giant has not beaten Amazon, but has a decent range if you can order in $ 35 increments – and that's appealing.

. 2 Target is reached the same day

The goal behind Walmart and Amazon has lagged behind when it comes to offering a free two-day delivery. It has a similar offer as Walmart with a minimum order value of $ 35, but only offers a selection of a few hundred thousand items. (Owners of the REDcard of the company do not have to meet the minimum requirements.)

If Target offers a real alternative to Prime, the shipping offer via the Shipt service is the same day delivery offer. The merchant offers a four-week free trial for Shipt, which costs either $ 99 per year or $ 9.99 per order.

The company offers a robust selection of food and household items for same day delivery (sometimes almost immediately). Of course, in some markets, Amazon offers whole-food delivery on the same day and for Prime members. However, the branch base of Target offers an advantage in this area.

Do you need Amazon Prime?

The edges of Amazon are in selection and convenience. Prime members can get just about anything they want in two days, and one day soon. This means they can order without planning and arrive at your home within two days (and possibly one).

These may not be big advantages over Walmart and Target offerings. Basically, Walmart offers Prime with less choice and a minimum of $ 35 for free, while Target exceeds its limits on same-day delivery.

It's possible that many Prime fans will not be tempted, but for people on the fence, Walmart and Target have compelling offers. Amazon still has much to offer, but it's certainly not the only game in town anymore.


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