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

 

b2ap3_thumbnail_dreamstime_l_99163451.jpg

 

Here is my annual report on the top stories in surface transportation in the United States and Canada over the past year. These stories are not listed in order of importance.

Economic Stability, Political Chaos, and Tightening Freight Capacity

...
Hits: 452
0
Continue reading 0 Comments

b2ap3_thumbnail_amazon-logo.png

This is the decade of the “effect.” As  an example, we keep hearing about the “Trump Effect.” While not much of his legislative agenda has been approved to date, president Trump still has almost three and half years remaining on his first term in office. It will be interesting to see how much of his “conservative” agenda is implemented and the impact that it will have. Of particular interest will be the NAFTA negotiations that begin on August 16. Similarly, Climate Change is having profound effects in various parts of the world, whether it is from flooding, forest fires, drought, severe storms, or floating ice bergs.

We are also going through an era of major transformations in energy production/consumption and technology. The new Tesla car that was introduced to great reviews this week may be the catalyst to a shift away from gasoline-powered cars to electric vehicles. The fact that this beautifully designed car, introduced at a market friendly price, can get almost 500 miles on a charge, could be a turning point in the evolution of electric vehicles. India has recently made a major commitment to electric vehicles.  This coupled with driverless or at least semi-autonomous cars and trucks, that are a few years away, could have profound effects on energy consumption and transportation.

Smartphones, tablets, ecommerce, apps and Uber threaten to have an equally dramatic impact in many areas of business. One company that is very well positioned to capitalize on the Technology Effect is Amazon. Here are a few statistics to consider.

While total retail sales in the United States grew by 3.8 percent in 2016, ecommerce sales grew by 15.1 percent during the same period. Most of that growth is being driven by one company. According to Slice Intelligence, Amazon accounted for 53% of all ecommerce growth in 2016. During 2016, Amazon had almost 37% market share in ecommerce sales; Wal-Mart had a 2.6 percent market share and Target had a 2.7 percent share. Keep in mind, these statistics don’t reflect the potential impact of the Whole Foods acquisition.

...
Hits: 265
0
Continue reading 0 Comments

 

b2ap3_thumbnail_Amazon-shopping-cart.pngb2ap3_thumbnail_Whole-Foods.jpg

The grocery business is about an $800 billion market in the United States and about $80 billion in Canada. This is one sector of the retail market where Amazon has not achieved a significant beachhead in either country. With the deal to buy Whole Foods, the online retailer will have a small slice of the grocery market (about 1.2% in the United States) in North America, which is dominated by a handful of firms like Walmart (14.2%) and Kroger (7.2%) in the United States and Loblaw Companies, Metro Inc. and Sobeys in Canada.

Last year, the online shopping giant launched Amazon Go, an experimental grocery store with no checkout counter that's currently open to Amazon employees in Seattle. Amazon also opened its first brick-and-mortar book store in Seattle in 2015, and has since expanded to New York City, Chicago, and Los Angeles. The company is said to be evaluating various physical retail experiments that range from futuristic Home-Depot-like stores that incorporate augmented reality to Apple-like electronics boutiques, according to The New York Times. Amazon's acquisition gives the company 431 physical Whole Foods locations to potentially flesh out new concepts.

Amazon’s entry into the grocery market will expose the company to an incredible array of commodities and supply chain variables.

...
Hits: 297
0
Continue reading 0 Comments

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: 1772
0
Continue reading 0 Comments

Most Recent Posts

Search


Tag Cloud

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

Blog Archives