Fintech & Ecommerce

Amazon Pays Customers for Pickup to Cut Delivery Costs

Amazon offers its customers a reward of $ 10 for the pickup of purchased goods.

Amazon Pays Customers for Pickup to Cut Delivery Costs

Source: Pixabay.com

Last Monday, May 8, the media reported that the e-commerce giant began sending emails to Prime subscribers, which contain information about a bonus payment of $ 10 for a purchase of $ 25 or more at such outlets as Amazon Fresh, Kohl’s, and Whole Foods stores.

This solution of the company has a huge potential to significantly reduce the level of costs associated with the process of delivering products to consumers. Also, the innovation of the e-commerce giant can help avoid the loss of expensive parcels. Another advantage of Amazon’s solution is the potential probability that the bonus offer will form the habit of consumers returning goods directly to the company.

The news about the innovation of one of the largest players in the e-commerce market comes a few weeks after reports that Amazon announced that customers returning orders to UPS stores must pay a $1 commission if they have another free refund method, such as Whole Foods or Amazon Fresh, available on the same distance. Shortly after, Walmart doubled the free shipping and return services that Walmart+ program members rely on.

Experts call Amazon’s decision on the commission fee unsuccessful. The company continues to be in the position of the dominant player in the subscription market, but customers who are thinking about ending interaction with the firm, as a result of the introduction of an additional financial obligation, have significantly approached the beginning of commercial relations with Walmart. The return of the goods means the disappointment of the buyer in his qualities, and the commission fee only aggravates the unpleasant situation of non-compliance with the purchase expectations.

Amazon is not a pioneer in the context of deciding on innovations in the delivery of goods. Experts at the beginning of this year predicted an intensification in the retail sector of the trend to reduce offers of free delivery and the emergence of new conditions for the provision of relevant services.

Companies resort to the practice of increasing the minimum cost of an order, which provides for the right to free delivery, reducing the speed of providing this service, and charging fees for improving the quality of the retailer’s activities in this direction.

As we have reported earlier, Amazon Posts $3.2 Billion Profit.