Follow us on Twitter!
Blog Header Logo
DG&A's Transportation Consulting Blog
Subscribe to this list via RSS Blog posts tagged in Retail

Amazon launched a new mobile phone, the Fire Phone that could be a true “game changer,” not just for mobile communications or retail sales but also for freight transportation. Let me tell you why.

Unlike other cell phone manufacturers, Amazon is looking for e-commerce business, not mass profits from mobile phone sales. That is the raison d’etre for this phone. Like Apple, they have created an entire ecosystem. Unlike Apple, their ecosystem is not based on selling just computer hardware and software such as iTunes, iPads and iPhones. Amazon wants their hundreds of millions of registered users to buy books, consumer electronics, toys, household supplies and toasters from their massive warehouses of products.

Amazon has a huge inventory of data on consumer preferences and purchasing behavior. It can tailor its marketing messages to specific target markets and then cross-sell them on purchasing other lenses for a camera or tennis clothes to go with the purchase of a new tennis racquet. Amazon’s Firefly technology allows the user to point the phone at an object and then be transferred to an Amazon website that will sell you the product. This is a neat trick (e.g. clever software) that will allow impulse buyers to obtain instant gratification.

Last but not least, the purchase of the Amazon Fire phone provides the user with a free one year subscription to the Amazon Prime $99 a year freight delivery service. So as the user sees a product in a magazine or store, the Fire Phone can take you immediately to a website that will sell you the product and suggest others that you may like. With another click on the Fire, the user can then arrange to have the goods delivered to their home or office within two business days. Clearly the Amazon Fire is trying to create a new e-commerce business model. Like every other new business model, it will take some time to gain traction. If, and more likely when it does, it could dramatically change the world of freight transportation.

The Amazon Fire will allow consumers to “point, shop and ship” almost anywhere, any time. The speed and simplicity will appeal to anyone who prefers to look at a photo and shop without going to a mall or even searching online to find an object. Of course, the Fire Phone has a number of other interesting features like 3-D imaging and an enhanced camera so it can compete with other mobile phones.

Hits: 1689
Continue reading 0 Comments

E-commerce purchases make up 5 percent of Sales in the United States and about 3.4 percent in Canada. These relatively small percentages may cause retailers and trucking companies to downplay the role that e-commerce is having and will have on this sector on this sector. This would be a huge mistake.

Dramatic changes are coming to almost all facets of the retail sector. In the home entertainment and book distribution segment, retailers are changing product lines and the customer buying process experience. A trip to the local Chapters or Indigo store will open your eyes to the types of transformations under way. As online music sales have escalated in recent years, CDs have been almost totally removed from store shelves and books constitute a much lower percentage of the floor space. In their place, you will find dolls, toys, gifts, glassware, e-readers and tablets, blankets and a host of other items. Since so many Dell computers and other high tech products have been purchased online for the past 20 years, consumers are very confident in buying products in this manner.

A visit to the local Loblaw’s store will highlight a much larger footprint and a greatly expanded product line. Take-out meals, sushi counters, organic and non-organic food counters, in-house restaurants and a host of other changes have greatly expanded the size of these giant stores. Staples, Toys “R” Us and Best Buy Co. Inc. are shrinking their store space, expanding stock rooms for e-commerce distribution or shutting certain outlets. Toys “R” Us is converting more store space to backrooms to fulfill its growing number of online purchases. Later this year it will begin allowing customers to pick up their online orders at its stores.

Meanwhile in the United States, Amazon is investing in distribution centres in the major markets so it can provide same day delivery to its customers. This will allow them to take direct aim at a range of retailers in these markets. As they increase their e-commerce business, they will continue to draw more business away from traditional retailers.

Retailers are scratching their heads as to the appropriate footprints for their stores, the correct assortment of products, the marketing approaches they should use for their brick and mortar operations and e-commerce operations and whether to shutter or add stores.

Hits: 2385
Continue reading 0 Comments

Most Recent Posts


Tag Cloud

Warehousing truck drivers US Election USA Truck Canada Surety bond BNSF Dan Goodwill pipelines Canada's global strategy Derek Singleton Loblaw 2012 Transportation Business Strategies. Jugaad IANA Management 3PLTL CN Rail Search engine optimization Shipper Stephen Harper Trade Vision selling trucking companies bulk shipping Leadership Freight shipper-carrier contracts mentoring Facebook 2015 Economic Forecast New York Times US Economy Failure Spanx freight cost savings derailments transportation audit BlueGrace Logistics MBA Carriers CP Rail 360ideaspace rail safety autonomous vehicles Toronto Software Advice 2014 economic forecast freight costs Freight Management freight transportation in 2011 Transport Capital Partners (TCP) CRM Social Media in Transportation Trump Truckload Driver Shortage Distribution Entrepreneur Celadon Retail transportation Training New Hires US Housing Market Crisis management freight broker network optimization Canada U.S. trade driver freight transportation conference Business Strategy capacity shortages FMS freight payment freight audit capacity shortage Harper Davos speech freight audit University of Tennessee NAFTA economic forecasts for 2012 Freight Recession freight bid Sales Training future of freight industry Packaging peak season home delibery EBOR Deferred Packaging driverless TMS TransForce TMP Worldwide Transportation service Climate Change automation Reshoring LCV's Railway Association of Canada Job satisfaction ShipMax Emergent Strategy Schneider Logistics Freight contracts Load broker Inbound Transportation routing guide NCC Conway buying trucking companies Sales Management Politics NMFC Career Advice Freight Capacity LTL LinkedIn freight RFP Werner Driving for Profit NS Regina FCA Transplace Blogging Dedicated Contract Carriage Retail Transportation Twitter Bobby Harris tanker cars Omni Channel coaching Freight Rates shipper-carrier collaboration FMCSA Consulting Donald Trump Trucking dynamic pricing shipping Canadian truckers solutions provider 3PL JB Hunt Comey Finance and Transportation UP Tracy Matura CSA scores Rate per Mile Keystone Pipeline carrier conference shipper-carrier roundtable robotics financial management Canadian freight market Social Media CSX Fire Phone $75000 bond Success failure entrepreneur fuel surcharge Life Lessons Right Shoring Swift Transcom Fleet Leasing President Obama small business drones business start-up APL CSA Accessorial Charges Business Transformation Strategy freight payment Hudsons Bay Company 2014 freight volumes energy efficiency FuelQuest freight transportation FCPC Dedicated Trucking Otto Transloading Associates CN consumer centric Global experience broker security employee termination Transportation Buying Trends Survey freight agreements Business skills Horizontal Supply Chain Collaboration Canadian economy broker bonds Global Transportation Hub truck driver freight forwarders dimensional pricing Freight Carriers Association of Canada Wal-Mart cheap oil professional drivers Scott Monty customer engagement Amazon hiring process KCS transportation news Microsoft driver shortages Ferromex Muhammad Ali Education Doug Nix CITA Shipper Pulse Survey RFP Map-21 US Manufacturing MPG Crude Oil by Rail David Tuttle Success Rail Cleveland Cavaliers ProMiles Rotman School of Business Freight Shuttle System 2014 freight forecast Infrastructure freight rate increases Colilers International 2013 Economic Forecast US Auto Sales marketing transportation newspaper trucking company acquisitions economy Training shipping wine the future of transportation Adrian Gonzalez Canada-U.S. trade agreement YRC intermodal Broker Yield Improvement Masters in Logistics Doug Davis Canadian Transportation & Logistics e-commerce

Blog Archives