What retailers can learn from Amazon and Walmart’s price battle

amazon

Amazon updated their website this week to reflect a new price point for free shipping, dropping the minimum order value from $35 to $25. While the 10 dollar price drop may seem underwhelming to consumers, it’s indicative of a much larger narrative in the e-commerce space.

The step down is another in Amazon’s race to the pricing bottom with retail incumbent Walmart, who had set the previous minimum by dropping shipping from $49.

The two businesses have always been designed to deliver the same service: low-cost goods, offered conveniently. With Walmart having staked their claim in brick & mortar and Amazon with their digital storefront, the two are now clearly clashing over the online shopper.

As these two giants duke it out to become consumers’ preference for e-commerce, we can glean a few takeaways about what it means for the rest of us.

Convenience is key

This whole pricing battle has been driven by shifting consumer preference. Where customers once settled for 5-day shipping or in-store shopping, they have now become accustomed to the convenience of speedy delivery.

In fact, some statistics have shown that this has been taken to the extreme, with 18% of consumers reporting that fast delivery is the largest factor when choosing their favorite store.

Most retailers aren’t Amazon or Walmart, however, leaving competing on price out of the question. So how do retailers compete without breaking the bank?

Own the customer experience

In order to remain competitive in the changing retail landscape, businesses need to be able to differentiate themselves. Choosing to do so by owning the customer experience—by making the interaction with your customers as seamless as possible—retailers can offer a heightened experience that doesn’t necessarily need to compete on price.

Deliv

Offering Same Day Delivery with Deliv allows you to control the purchase and delivery process, allowing you to differentiate with experience rather than price. As opposed to marketplace services like Postmates, where retailers are placed adjacent to competitors, Deliv allows you to fully control the relationship with your customer.

By integrating delivery, retailers are able to offer a finely-tailored customer experience. Deliv’s real time package tracking tool and scheduling abilities let consumers have the convenience of a large retail with the personal touch of a smaller brand.

With research showing that consumers are willing to pay 11 percent more for each added layer of convenience, retailers have every incentive to do just that—whether they’re Amazon or not!

Schedule a Deliv today and experience same day delivery or contact us to learn how to enable same day delivery from your website!

 

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