From milk to Macy’s, home delivery services compete for customers

Photo by Dreamstime

You’ve probably noticed the decline in used-book stores and antique shops that’s coincided with the burgeoning growth of online retailing, particularly that related to Amazon.com and eBay. 

Unable to compete on price and selection, about all that local bricks-and-mortar establishments have going for them these days is instant gratification.   Need a DVD or a shower curtain or a Barbie doll in a big hurry and you’ll have to haul off the couch and go fetch it from a store. 

Until now. Ebay in San Francisco is testing same-day service, offering to deliver merchandise from select merchants like Macy’s, Target and Toys ‘R Us in as little as an hour, according to a report in The Los Angeles Times.  And according to Forbes, this may spur Amazon to build more warehouses so it can beat eBay to consumers’ doorsteps.  Amazon already offers a local express service, for an extra fee, on some products in some markets.

Even if these retail titans aren’t yet testing instant service in your markets, it’s a good story to hop on from a couple of angles.

First, it’s a good peg for a checkup on how online selling is affecting existing retailers in your Main Street and mall areas.  Slate says Amazon’s plans bode ill for local stores.  I noticed recently that a long-time local pet shop is offering free delivery and holding festive, money-saving VIP events to keep patrons engaged.   What are your readers seeing in their neighborhoods? 

In addition to the merchants themselves, you might want to check in with shopping-center developers, mall operators and builders about trends.  I took note of this recent New York Times piece, for example, that said malls are turning to experience-based businesses to fill holes; you can’t take ceramics lessons, get a haircut or do yoga over the Internet.  I think this is a great opportunity to localize a sophisticated retailing angle and one that will also lead you to interesting or innovative local entrepreneurs. 

Second, the eBay and Amazon news is fodder for a fun feature about a wide variety of items that consumers can order up for home delivery, and a peek at the business models of companies that offer such services. Dunkin’ Donuts offers a coffee subscription service, and of course Schwan’s frozen foods are a home-delivery staple.  As I mentioned in a recent blog post, American Airlines now will deliver baggage directly to your home or office, for a hefty fee, and as a Lex18.com story out of Kentucky notes, the days of the ‘milkman’ may be returning as home delivery of dairy products makes a tentative comeback.

The Internet sales tax issue is heating up again, with a new Senate bill proposed.  This Forbes article ponders the effect on consumers and businesses, with a link to some useful research.

And finally, stories about online retailing vs. local storefronts tend to look on the downside, but what about the upside?  Warehouse space, delivery services, packaging and package-recycling businesses must see some sort of blip.