This morning I read how Amazon is now befellows with P&G in the warehouse, further reducing friction, and lowering the cost of handling products like Pampers. To me, it's all about LIKE, WANT, NEED and how Amazon is going to meet those emotions.
Today you can order and have Pampers delivered via Amazon's courier network that is replacing, but not as rapid (yet) as UPS and FedEx. But it begs the question, are UPS and FEDex the next rungs in the distribution chain that Amazon starts to disintermediate, futher lowering costs of delivery, and increasing speed that people receive their purchases.
You have to look at what Amazon is doing more deeply to really grasp the magnitude of what they are up to. For starters, Amazon is one giant data crunching machine. If people think Google knows what you read and what apps you use, Amazon really knows what you buy, and how fast you consume it. They are to those in the supply chain, a wet dream come true, and its all about the data.
Next Amazon is a logistics team on steroids. Over the past few years Amazon has taken the approach of an edge network, placing warehouse operations all across the USA and likely the globe, and with that they deliver the products to you faster and cheaper. I for one buy from Amazon, WalMart and Walgreens, get free shipping, and use them for pantry loading of items I don't immediately need, saving money, and not having to waste time driving to Costco or even my local market. In essence, Amazon has become the virtual big box story offering access to more suppliers than any one local or national chain.
But of the online mass marketers, Amazon has that level of deeper selection and better communications with their customers who are used to "online" support processes. With the addition MayDay, or as The Verge descibes it, a virtual genius bar for apps and services for the Kindle Amazon has changed customer service--forever. Think about it. Kindle apps today. Your blender tomorrow.
Need a quick recipe, imagine talking to the cookbook expert on say, pizza, getting a list of what you need to make one-pizza stone, flour, bottled water, fresh tomatoes, cheese, oh, and yes, a pizza oven. Now imagine which of those items you can order through Amazon directly, or get from your local suppliers who supply Amazon's human network of delivery carriers can work with them and deliver it to the customer, sooner, faster and quicker.
Now take the Mayday model one step further, and go back to the blender. Pick up the Kindle, and report that your blender isn't blending any more or your mixer's not mixing. Amazon can help you get it repaired or if it's still in warranty, replaced. If it's out of warranty or beyond repair, they can sell you a new one. Now do it in reverse. Their delivery crews can pick up your electronic waste, and recycle it, supply it to parts companies, who do repair the older units, be enviromentally friendly, and help keep you updated and upgraded.
Net-Net-Shop with Amazon, get your support from Amazon, and when you need a new blender or anything else they can offer you what you like, when you want it, and get it to you when you need it.