Should courier companies be worried now that Amazon is offering free delivery to Jamaica?
Jamaica is one of seven countries in the Caribbean that is benefiting from Amazon’s recent promotion for free shipping on eligible items. And you don’t even need a prime membership!
Aruba, The Bahamas, Barbados, the Cayman Islands, the Dominican Republic, and Trinidad and Tobago are also part of this new initiative that is Amazon’s first step into expanding its services and delivery options into the Caribbean.
Now I’ve been seeing many people already enjoying the service, but others have raised the question about freight forwarders suffering because of it.
Well, not so fast. While the free delivery option is exciting, there are a few things to keep in mind that will keep freight forwarding businesses in the game.
Firstly, not every item on Amazon qualifies for free delivery. So while you might get lucky with certain products, many items will still require shipping fees. Amazon has made it clear that the free shipping deal applies only to select products, so freight forwarding companies aren’t out of the picture just yet. If the item you want isn’t eligible for free shipping, you may still need to rely on a freight forwarder to get it to Jamaica.
Secondly, let’s not forget that Amazon isn’t the only online shopping giant. Other popular retailers like SHEIN don’t offer free shipping to Jamaica. So, while some Amazon shoppers may save on delivery costs, many will still turn to freight forwarders to get their items from other sites. However, some freight forwarders have expressed concern that other retailers will follow suit.
Amazon also stated that free international delivery is a limited-time offer, so it’s not certain how long this will last and if it will be a permanent change.
So, should freight forwarding companies be worried? Not just yet. While Amazon’s free shipping is a game-changer, it doesn’t eliminate the need for these businesses. The key is for these companies to stay informed, be flexible and adjust to trends to provide additional value to their customers.
In the end, it’s great news for consumers because it provides lower shipping costs and more shopping options. But the freight forwarding industry isn’t going anywhere anytime soon.
However, if you’re an investor in Mailpac, for example, keep an eye on developments in this industry. Mailpac’s stock price is down 13-percent in March, after the news broke earlier this month.
And that’s the bottom line.
What’s your take on Amazon’s free delivery deal? Do you think it’ll change the way you shop online? And for those of you who use freight forwarding services, do you think they’ll continue to play a role in your shopping experience?