Amazon plans to activate same-day delivery system – Part 1

With a lot of pressure from both sides of the fence, Amazon might start the delivery service prematurely, eBay is already in action in San Francisco area

Amazon is starting to become the next Apple both in popularity and profitability. In the recent developments, the largest book selling entity is opening stores in Brazil and planning to start the same-day shipment service in the US.

Should it become a success in North America, it has a potential of spreading into other parts of the globe. However, the kick-start project is getting a mixed reaction from the likes of customers and experts.

Experts are of the view that same-day delivery is the requirement of the contemporary world when most of the things are electronic within the instant reach of the customers. Therefore paper-based media or any other product that is tangible should be available instantly as well.

Customers believe that same-day delivery is a good option but the anticipated $5 fee for a single delivery is expensive.

Reports surfaced in early July, when a newspaper ran a story that said Amazon has accepted the fact it will have to start charging sales tax in all U.S. states. To counter these higher charges, Amazon might offer “same-day delivery to more consumers,” the paper said. Its report gained traction.

While Amazon has not encouraged such speculation, a recent comment from its chief financial officer Tom Szkutak didn’t entirely scotch the idea.

“We don’t really see a way to do same-day delivery on a broad scale economically,” Szkutak told analysts on a July 27 conference call to discuss Amazon’s Q2 earnings.

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Posted by Usman Khalid on Aug 11 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.