Last week, one of the largest, most powerful organisations in retail announced it was preparing to launch its own direct delivery service – Shipping with Amazon.

This new offer aims to start with retailers selling through the platform, before likely opening up to other businesses.

The response appears to have been one of near panic, with shares in some of the largest US delivery firms instantly falling as a result of what is – at this stage – a service limited to just the LA area.

But this news shouldn’t really be any surprise at all. Amazon already operates its own cargo fleet and logistics network, and is well known for its innovation – from Dash buttons to delivery drones - so it seems a perfectly logical step.

It’s also one that underlines just how important this part of the customer experience, and the convenience associated with it, has become.

Rather than jumping to the assumption that it’s a threat to their business, retailers should consider the motivations behind this move and take a lesson out of the Amazon playbook.

Why now?

We live in the era of ultra-convenience and Amazon’s latest move is a firm reflection of our times.

But we also live in a period of economic uncertainty – especially here in the UK, where consumer spending continues to fall while inflation reaches a six-year high. Retailers are feeling the pinch. Understanding why Amazon has chosen to launch its new service in this context is important.

“Yes, consumers are tightening their purse strings, but the truth is people will never let go of the convenience they have become accustomed to in better times”

Yes, consumers are tightening their purse strings, but the truth is people will never let go of the convenience they have become accustomed to in better times. This tougher climate is exactly the reason why it’s so important for retailers to remain competitive.

Consumers today shop on their own terms and have come to expect flexible, on-demand services from retailers, from point of purchase right through to delivery and returns.

Shoppers are becoming ever more savvy with where they direct their spend and it’s the retailers that are able to constantly innovate and evolve around the needs of their customers that will win out.

This may be a tough challenge. But for those retailers that build their offering around convenience, focusing their efforts on an agile, customer-led suite of fulfilment options, there’s a huge opportunity.

The Amazon ecosystem

Amazon is of course one of a kind, with the money and infrastructure to make big investments. One has to question how big Amazon can feasibly get before it starts prompting further scrutiny from bodies such as the EU, which is already hard on its heels on issues such as tax.

It’s clear from this move that Amazon has taken another step towards owning the entire customer experience.

Remember, this is a business that did the unthinkable only a few years ago and invested in becoming a creator of broadcast content; there is no strategy out of reach when it comes to meeting the needs of customers.

“The lesson from this announcement is just how critical same-day and tailored, convenient deliveries have become in the retail experience”

Undoubtedly this move raises the bar for the retail industry. But you don’t have to be a behemoth to adopt this mentality – sometimes small is beautiful.

The lesson from this is just how critical same-day and tailored, convenient deliveries have become in the retail experience.

This can be a challenging ask for many distribution networks; the flexibility and speed needed behind this is still difficult to get right – and retailers need to make changes to their own operation in order to match the task.

Regardless of Amazon’s next move, retailers of all sizes should continue to adapt their business to suit the needs of their customers – including fulfilment.

Innovative, flexible and fast supply chains are here to stay. And whether you’re competing against Amazon or the shop next door, the more you do for your customers, the more you’ll stay ahead.