Analysts Upbeat On Amazon.com Inc. (NASDAQ:AMZN)’s Sunday Delivery
The S&P 500 index tracked Amazon.com Inc. (NASDAQ:AMZN) has introduced its customers and competitors to new ways of doing business over the past few years. Continuing its pioneering approach to keep ahead of competition and guard itself from losing its customer base to competition, the mail order firm pulled out another first from its seemingly inexhaustible hat of tricks.
It announced that it has tied up with United State Postal Service to offer delivery service to its customers even on Sunday’s. In the initial phase the $161.5 billion market capped online retailer will be rolling out this service only to customers who are residing in New York and Los Angeles at no additional freight charges.
Analysts opining on this innovative approach of the firm to steal a leg up on competition are predicting that this service will get extended to other cities in U.S over the next few months as Amazon’s working relationship with United State Postal Service settles down and the initial operational hiccups ironed out. In what seems to be a win-win situation the courier service provider too would be happy to be part of this deal since this means it is taking business away from its larger rival UPS.
Trade guru’s who have been studying Amazon.com Inc. (NASDAQ:AMZN)’s go to market strategy for long have explained that this is a further attempt by the quick thinking online player to gently nudge more of its non prime customers into the growing legion of its prime customer base. These customers who are upgrading to Prime services are being lured by the yet to be uniformly offered “Same day Service” that Amazon is attempting to roll out to its user base.
These fresh moves by the e commerce behemoth have forced its competition to respond. Last heard its competitors like Target are aligning with other mail service providers to offer similar services in near future.