Update: Retail Restructuring

Update: Retail Restructuring

Recently, Amazon rolled out what it calls “Photo on Delivery,” a service that sends to a customer’s phone a photo of a package delivered to his or her home. Considering that Amazon’s net shipping costs were $7.2 billionin 2016, it is not surprising that the company wants to ensure that its customers actually receive their packages, especially given that 11 million U.S. homeowners claimed they had a package stolen in 2016. Not to be outdone on experiments surrounding package delivery, Walmart is currently testing an associate delivery program, utilizing its own employees to deliver online orders on their way home. For additional pay, workers in three stores (in New Jersey and Arkansas) can currently opt-in to drive packages to customers on their commute. The Digitally Trained Consumer desires convenience and ease, which for retailers means it is increasingly essential to deliver its products how, when and where customers want them. Although Amazon and Walmart are leading the charge in the U.S.,many retailers and logistics providers are continuing to experiment with omnichannel solutions and how to best get orders quickly and easily into consumers’ hands. The ones that do it best will have a competitive advantage.These experimental practices have implications for retailers, employment, logistics providers and warehouses, among others.

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