New Yorkers are known for their hectic lives, and some of those ordering from Amazon.com (NASDAQ:AMZN) recently may have gotten a pleasant surprise. According to The Wall Street Journal, the retailer has been testing same-day delivery in Manhattan. (Let's face it, how cool would it have been to get Return of the King delivered straight to the office when it was released last week?)
Same-day delivery isn't something New York customers request -- or pay extra for -- yet, since it's a test. Meanwhile, the ability to get a best-seller or a chart-topping CD online the same day could make things harder for retailers like Barnes & Noble (NYSE:BKS) (which the article said also offers delivery in Manhattan) and Borders (NYSE:BGP); the need for instant gratification has always been viewed as an Amazonian Achilles heel.
Amazon's free-shipping option was once controversial, as people questioned shrinking profit margins. In fact, the move had the positive effect of encouraging people to load up their virtual shopping carts. Well-executed risks that turned into rewards have been why this long-time Motley Fool Stock Advisor stock has proven itself the cream of the Internet crop.
The Journal stated that Amazon already offers accelerated shipping for next-day delivery of some items. Indeed, same-day or even next-day delivery, with a premium charge tacked on for impatient consumers, could be a key to Amazon increasing profit margins.
Online shopping is on the upswing, as was explored earlier this week here at the Fool. Amazon's obviously not slacking off at this critical juncture, having been working on lots of things quietly and behind the scenes.
Its online jewelry store was publicized only after it had already been rolled out; its e-commerce-friendly search engine, A9.com, is out in the Internet wilds after little fanfare. In early April, Rick Munarriz pinpointed another way Amazon "gets it," leveraging its online prowess into more bang for the customer's buck.
As much as we all might relish the idea of ordering, say, the next Harry Potter book online for same-day delivery, think of the cash infusion to set up facilities centers with the right inventory in multiple cities. So, don't hold your breath for Amazon to make it as easy to get a new DVD as ordering in Chinese food in your neighborhood.
As much as I have come to expect from Amazon (and feel that if anyone can do it, Amazon can), the name of the game for most of us Amazon customers will likely continue to be "good things come to those who wait" -- just a little while, anyway.
Will Amazon ever offer same-day delivery in more major cities? Is it a brilliant idea that could be expanded, or a money pit and logistical nightmare that would go the way of infamous Internet flameout Kozmo.com? Talk to other Fools about all of Amazon's latest moves on the Amazon.com discussion board.
Alyce Lomax does not own shares of any of the companies mentioned. She finds it interesting that another of Amazon's offerings is the site many of us go to look up movies, casts, and filmographies: IMDb.com -- though it seems surprising its search tab uses Google, and not A9.
