New digital business models makes Target Restock & Amazon Prime Pantry a reality

Target has begun testing a next-day delivery service, similar to Amazon Prime Pantry. Will it succeed?

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eCommerce Achille’s heal is delivery cost – the last mile. Any company that solves this problem wins the eCommerce game. Amazon has been experimenting in this field for years and it looks like some are really popular with customers and beneficial to Amazon. Case in point: Amazon Prime members spend 5x more than other consumers because they feel shipping is “free”. Amazon grocery delivery will put thousands of trucks on the road effectively making delivery cost marginal for Amazon. And here, with repetitive restocking, delivery costs can be reduced by shipping in bulk and high volume.

Farid Mheir