Page 41 - ATR 1 2016 web

strict enough service needs that existing
carriers can’t meet those needs.
As Amazon continues to add
subscribers to its prime service, more
customers are promised free two- coNsumer iNtelligeNce research partNers
day shipping on a large percentage reported the NumBer of amazoN prime
of the website’s offerings. Consumer memBerships iNcreased 35 perceNt iN 2015 to a
Intelligence Research Partners reported total of 54 millioN, almost half of
the number of Amazon Prime member-
ships increased 35 percent in 2015 to americaN households.
a total of 54 million, almost half of
American households.
Amazon’s existing carriers couldn’t
meet service needs in December 2013, Williams argues that there’s a disso- passed on to the customer in a trans-
and as more online shoppers come to nance between consumer demand for parent, line-item way in the future is
expect free two-day shipping, the risk of speed and an understanding of how anyone’s guess, but customers don’t
additional service failure increases. much it costs. seem to mind the fee rolled into a sub-
Brent Williams has been conduct- “I think a real question has to be scription service like Amazon Prime.
ing soon-to-be-published research asked of ourselves as consumers, how They do seem to want their deliv-
on customer preference and expecta- much of the speed are we willing to pay eries even faster than the two days
tion when there is a stock outage at for? Right now, so much of the cost in allowed in Prime membership ship-
a brick-and-mortar store. Looking at online from a shipping standpoint is ments; Amazon has recently rolled out
the influence of speed and the influ- not exposed to us as the consumer, so one hour delivery on certain orders in
ence of convenience, his research team if I expect free shipping, in reality, we select cities.
found that preference is for speed know that the shipping really isn’t free.”
when replacing that out-of-stock item. Whether speedy shipping costs are 

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arkansas trucking rePort | issue 1 2016 41