Amazon Prime Day 2019 - Kuebix

Amazon Prime Day 2019 – ‘Christmas in July’ for E-Commerce

Today marks the start of the fifth-annual Amazon Prime Day – a 48-hour marathon of discounts on a wide array of products offered exclusively to Amazon Prime members. Since the first installation of the unofficial holiday in 2015, Amazon has extended the event through products launched exclusively at the start of the sale and $10 to spend on Prime Day for any members who spend $10 at Whole Foods within a certain period beforehand.

2018 Amazon Prime Day sales are estimated to have hit $4.19 billion, increasing nearly 74% in comparison to 2017’s sales of $2.41 billion. With this year’s event scheduled to run for a full 48 hours in comparison to 2018’s lasting for 36 hours, sales are expected to continue to trend upward.

Participating in Amazon Prime Day

For brands utilizing the promotional frenzy, having a successful Amazon Prime Day is far more complicated than discounting a product and crossing their fingers. The first (and arguably most important) key to success is accepting and aligning yourself with the focus on Prime-eligible products. Most shoppers prefer and seek these products out, so shipping inventory to ‘FBA’ (fulfilled by Amazon) locations ahead of time is crucial. Preparing supply chains well ahead of time is necessary for many e-tailers to be successful during this important event. Brands are also encouraged to use Amazon’s discount coupons, a self-serve feature that can be set up by any vendor or seller on Amazon.

However, driving sales isn’t the only way to take advantage of Amazon Prime Day. Many brands use this day as an opportunity to increase awareness about what they have to offer and also test how their audience will receive products they are considering launching. Products that have consumers leaving rave reviews and purchasing backups make them all the more likely to remain popular once the sale is over. Consumers will also be more willing to try new products since a discounted price makes buyers more comfortable because there’s less financial risk attached with the possibility of disliking the product.

Competition

As the popularity and overall awareness about this event grows, more and more retailers are stepping up to the plate and offering their own discounts in an attempt to compete. RetailMeNot estimates that in 2019, 250 retailers will take part in the unofficial holiday by offering discounts of their own. This is a significant increase from 2018’s 194 retailers, which can be attributed to the steady incline of consumer engagement and timeline of the event.

Walmart is offering deals for a longer period of time than Amazon Prime Day in an attempt to compete, while Target is echoing the exact dates and placing a heavy emphasis on the fact that there’s no membership required to participate in their biggest summer sale.

It’s clear that whether you are a vendor, Prime member, or regular customer, opportunity is about to pour in from every direction. Gear up and get ready – ‘Christmas in July’ is officially upon us!

Prime Air Drones Kuebix

Amazon is Taking Prime to New Heights With Amazon Prime Air

With the extreme ease and convenience free 2-day shipping gives customers, Amazon is already changing the world. Many retail stores, such as Toys ‘R’ Us and Payless Shoe Source, have lost market share to Amazon, eventually leading to store closures. There is a very high demand for customers who want their packages delivered to them as soon as possible.

Now Amazon believes that they have found a new approach to provide even faster shipping – one that would allow customers to receive their packages within as little as 30 minutes! The concept of Amazon Prime Air was introduced to meet this need. Amazon Prime Air is an electric drone program that will drop small packages directly to customers’ doorsteps.

How Does Amazon Prime Air Work?

According to Amazon, safety is their priority. They wanted to ensure that the design of the drone would include stability and efficiency, so they created a hybrid design which would allow the drone to depart vertically and transition to airplane mode once in the air.

Amazon also claims that the drone is stable in windy conditions due to its six degrees of freedom, which Techopedia defines as “the specific number of axes that a rigid body is able to freely move in three-dimensional space.” The drone is able to fly up to 15 miles with an altitude of about 400 feet, using advanced sensors and artificial intelligence (AI) technologies to navigate through static and moving objects that can interfere. The drone can only deliver shipments under 5 pounds, but this isn’t a problem for the e-commerce giant which claims that 75-90% of the items it sells meet these criteria. This makes a very fast and convenient delivery option for customers who need their shipments in a pinch!

How Will Prime Air Affect the Transportation Industry?

The transportation industry currently involves plenty of physical labor such as actually driving on the road and loading/unloading shipments. Cars and trucks in transit to ship products require money being paid for the gas, money to the drivers, and wear and tear on the vehicle. That doesn’t even include the risk of damage in cases of accidents! Technology within the Amazon Prime Air drones makes them completely reliable for safe delivery of shipments. Since the drones specifically handle smaller packages, trucks and cars are still needed for bigger shipments. However, this new technology would save a lot of time and money that could be wasted from empty backhauls or trucks traveling partially empty. The supply chain of products would be less costly, more efficient and customers’ growing expectations around the speed of delivery would be met. Drones are also more fuel efficient since they are electrically charged.

So What Happens Next?

It is no question that technology is advancing very rapidly. The market for drones will be worth an estimated $127 billion by the year 2020, meaning that many businesses may be in jeopardy if they don’t compete with Amazon’s fast delivery times. If customers are able to receive their shipments within half an hour by using Amazon Prime Air, it will likely be a major hit with consumers throughout the entire world! Amazon claims that the Prime Air program will launch before the end of 2019, so the transportation industry could go through a drastic change very soon. So next time you purchase an item from Amazon, there could be a drone showing up to your doorstep!

The Evolution of E-Commerce

The e-Commerce industry is booming, and this has caused many organizations to overhaul their transportation operations due to the high volume of small orders that require Amazon-like delivery times. Logistics managers are having to get creative to find capacity for the exponential amount of trucks needed to make deliveries to/from warehouses, stores and customers’ homes. Retailers, distributors, suppliers and manufacturers need innovative and robust solutions to beat the competition and create a sustainable edge.

In a recent Logistics Management article titled, “Evolution of E-commerce: The possibilities of tomorrow,” the writer, Roberto Michel, interviewed several thought leaders and industry analysts about the trends and solutions that should be of interest to industry leaders.

In the article, Kuebix’s own Dan Clark was quoted discussing how to combat issues caused by the boom in e-commerce, which is tightening truck capacity even more. “To deal with this challenge, companies need to find all possible transport opportunities, such as tapping into otherwise empty backhauls. The name of the game is capacity,” says Clark. “You need systems that allow you to be exposed to as many capacity opportunities as possible.”

“According to Clark, a TMS should be adept at connecting to multiple freight matching marketplaces and online logistics communities so that the shipper organization can match orders with capacity from more brokers, small independent trucking firms and fleet operators. ‘You need to be able to quickly access all of those potential opportunities and match your loads with that capacity,’ he says.”

“Of course, TMS still needs good analytics and planning logic, especially when it comes to what Clark calls ‘deconstructing’ truckloads into less-than-truckload (LTL) shipments to see if breaking orders into LTL moves makes sense for both service level and costs.”

As e-commerce has evolved, new processes, trends and technologies have kept pace to facilitate the journey, including:

  • ·       Platooning, which is a group of trucks driven in a tight formation with a human driver in the lead truck and the other trucks driverless.
  • ·       Supply chain control towers that give visibility to supply chain operations combined with predictive analytics to provide even more information for better decision-making.
  • ·       Digitization of freight forwarding with cloud-based access to freight rates, quotes, etc.
  • ·       Distributed Order Management for centralized control of inventory and order processing.
  • ·       Blockchain to improve tracking and tracing of products through the supply chain.
  • ·       Predictive analytics with machine learning and AI recommended solutions to problems and answer “what-if” questions for advanced analytics.
  • ·       New transport modes such as the hyperloop for high-speed transport.
  • ·       Multi-carrier parcel software integrates with TMS and WMS for added functionality.
  • ·       Dynamic routing for real-time tracking and route optimization of fleets.
  • ·       Automated vehicle technology that powers driverless trucks.

Another trend that Dan discussed in the article was about last-mile deliveries, saying, “The growth of e-commerce is driving greater need for efficiency in last-mile delivery. For last-mile carriers, they’ll want to be able to closely track where their driver and truck assets are and match that knowledge to shipment opportunities coming from brokers and online logistics communities. Through such ‘digital matching’ of assets to deliveries, carriers can find backhauls and make operations more cost efficient. Over the longer term, the last-mile challenge in urban areas will also be addressed by the build-up of new types of warehouses or means of last-mile distribution. This might involve older shopping malls being converted to warehouse space, or new approaches such as AVs that act as mobile warehouses. I think absolutely that we’ll see some new approaches in dense metro areas, because there needs to be enough space close to population centers to hold the inventory needed for same-day deliveries.”