When retailers thought they could take a breather, or even gain some ground with catching Amazon, the e-retail giant expands again.  Amazon has now launched Same-Day Delivery in Canada.

The Financial Post recently reported that Amazon Canada has announced that it will be offering free same-day delivery in Toronto and Vancouver.  The service will be available for only Prime members at no cost, which already pay $79 annually for free delivery without a minimum order required. These members will have at their disposal the fast shipping option for all orders above $25 in both cities.  Same-day delivery is more efficient within major cities that have the demographics and economies of scale that translate into volume.  This type of shipping thrives on this.

With Toronto being the biggest city in Canada, along with another top city of Vancouver, Amazon is certain to receive the response it’s looking for.
“We have been working quite hard to improve the speed of delivery and we got to a point where we are now able to offer that service,” said Alexandre Gagnon, vice-president, Amazon Canada.  He also said, “In general, people using e-commerce tend to want to receive those goods as fast as possible. In response to demand we are launching this program.”  The demand for fast delivery is justifying the expansion for Amazon.  As quickly as many shoppers can order online, is just as fast as they would like to receive what they order.  As a web-based e-retailer, same-day delivery is trending to be a value-added service that provides leverage on brick-and-mortar stores.

Jim Danahy, CEO of retail advisory firm Customer Lab, talked about Amazon and the value-adding of last-mile delivery. He stated, “With the membership, Prime is like a Costco for online, and where they really made ripples when they first did this was during the holiday season.  They have clearly demonstrated that same day and next-day delivery across the United States has made a difference. I can see this making a difference for people who are pressed for time. Many people decide which retailer they choose based on those kinds of features.  It’s an infinitesimally small piece of Canadian retail at this point, but it is where the industry is going.”

In an effort to compete with Amazon, other big name retailers have added subscription programs to their online report, namely Wal-Mart.  Wal-Mart has rolled out a new pilot program, ShippingPass, for annual membership.  Shoppers can join for only $49, in comparison to Amazon’s $99 Prime membership fee.   ShippingPass members have the option of free next-day delivery, as well as those that have already paid their fee will receive a free additional month.  Wal-Mart also is offering 30-day trial memberships to pilot program.  Wal-Mart.com will have a logo next to the products in which the ShippingPass service can be used.

For any retailer seeking to offer same-day delivery, a viable option is a Same-Day Courier like 1-800 Courier, which has the logistical expertise to create effective delivery solutions.  The Orlando Courier has a national footprint and establish same-day delivery throughout the US.  Retailers will have to do whatever it takes to contend with Amazon.

Reference: 9.27.16, Financial Post, Hollie Shaw, Amazon launches same-day delivery in Toronto, Vancouver