Amazon announce today a new delivery option called “Local Express Delivery” (ALED) in seven markets. This service gives buyers same day delivery (with a cut off that varies per city). The brilliant part of the program is that Amazon Prime users get the service for $5.99/item. Other customers pay based on a rate card per category that is in the $15-20 range.
Where is this available and how does it work?
Each city has a cut off time detailed below and you can expect your item to come by 8pm the same day:
- Seattle – Must order by 1pm. Amazon continues to push the boundaries in their home city.
- New York City – Must order by 10am
- Philadelphia – Must order by 10am
- Boston – Must order by 10:30am
- Washington D.C. – Must order by 10:30am
- Baltimore – Must order by 10:30am
- Las Vegas – Must order by 11am
Amazon also pre-announced that they will turn on Chicago, Indianapolis and Phoenix in the coming months for ALED. (Hey Amazon – what about Raleigh-Durham!?!?)
What does this mean?
Amazon is clearly continuing to innovate with shipping options as their research has shown that fast, affordable shipping is one of the top factors for online consumers. ALED is an interesting step and will be pretty heavily used in the metro areas for the holidays. I think it also makes it yet another no-brainer to use Prime – heck you save $9 right on your first item here basically – and could see Prime subscriptions rise sharply as the metros realise the benefit of this. This is a great service for the holidays as you frequently ‘need it now’.
From a third-party seller perspective, I doubt this will have a direct impact as I don’t believe this is available to FBA sellers. However, to the extent this drives more Amazon shoppers to Prime, then FBA for 3P’s will become increasingly strategic.
SeekingAlpha disclosure – I am long Amazon and Google. I am CEO of ChannelAdvisor where eBay is a minority strategic investor.