Any company who uses Deliverr is going to quickly figure out that they have placed their most important business process in the hands of a third party, and that they have very little control over it.
eBay, Wal-Mart, and Shopify are in the business of delivering products. They don't make the products, they make them available to the consumer. Delivery is like 90% of that. This is why amazon runs their own fulfillment centers, it's the most important part of their process.
It would be better for eBay, Wal-Mart and Shopify to merge and compete against amazon as one, rather than fighting over the table scraps that amazon leaves them.
First any business should ask for metrics on past performance and that is how you should judge the performance and not by assertions or business models - Case in point -- Taxis were fully controlled they all looked the same, the drivers were all trained the same way -- yet the consumer experience was bad. Then Uber/Lyft came in and they don't drive the taxis but they are able to orchestrate demand and supply and offer visibility and a better price to customers. So going by your analogy Taxis >> Uber. But I think it is settled that Uber/Lyft >> Taxi. Judge Uber/Lyft with their metrics such (a) time to get a taxi (b) on time delivery and (b) cost to consumer. And businesses and consumers are smart enough to do that.
Second - marketplaces are in business of connecting buyers with sellers; laying out rules of engagement so trust is built for discovery and transaction. They are enablers. But a merchant participates in many markets and not just one. You cannot ask each marketplace to do fulfillment for the merchant because that will mean the merchant will have to predict and send inventory for eBay and Walmart and Shopify separately which is not efficient for anyone in the market.
Ok, I hear you, but I think you're missing the forest for the trees - Why did amazon beat these businesses in the first place?
It wasn't because they connected buyers with sellers, people have been doing that for decades. It has nothing to do with the rules of engagement, amazon is full of fake products and reviews. It wasn't because the user experience was bad, the amazon UX is pretty bad, it's very cluttered, and Shopify's UX is really impressive.
Amazon beats Wal-Mart et al. because their delivery is faster. And that takes control. The difference between delivering in two days and delivering in three days comes down to seconds.
And for what it's worth - Sometimes I am unable to get an Uber, but every time I call the taxi company, a taxi shows up.
(All of this isn't to say Deliverr won't provide value, just that I am doubtful it can beat amazon)
Amazon leads the market for many reasons among those price, selection [1], reviews, and then with more recent shifts faster shipping. The goal isn't to beat Amazon the marketplace. The goal is to bring the Prime experience to other marketplaces. I don't believe it's a zero sum game.
Amazon is a lot more comfortable than they were 10 years ago, and you can already see that as a result in higher prices [1][2] and lower shipping SLAs. Lifting the rest of the market increases competition and helps all buyers have a better experience.
Personally, I think Amazon's original advantage was definitely in a high-quality experience. (FWIW, I've been a customer since 1997, but didn't join Prime until 2010.) They used to have pretty reliable reviews and real products. They used to have better prices. And they used to have a much better user experience.
What I really want is shopping as a utility. I want to spend the minimum time possible and get great results with no worries. Speedy delivery is sometimes part of that, but not always. If there were something as reliable as the Amazon of 2010 but defaulted to 3-day delivery for free, I'd switch in a heartbeat.
I trust the interface much less. Just this week I had to send back two things that were mistakenly ordered. One was clothing. I set the size I wanted, then clicked on the color I wanted. The size I wanted wasn't available, so it switched the size without telling me. The other was a tool. I was searching for Dremel sanding accessories. Mixed in with Dremel-specific stuff were things that weren't compatible, but I didn't notice the switch.
It is now packed with ads of various forms. I want them to be on my side, showing me the best stuff. But instead, they are getting paid to show me stuff without regard to quality or usefulness.
The mixing in of stuff from others stores is another area where my trust has declined. If it were a separate site, that would be fine. But when I want to just buy something from Amazon, I now have to evaluate a bunch of possibly-dubious vendors on the basis of too-little information.
The reports of counterfeit products and comingled inventory has left me much more skeptical when buying things there.
The reports of terrible warehouse work conditions mean that I trust them less to take care of the people doing the work.
The way many people are now making bank doing store arbitrage, where they buy things at Target, Walmart, Trader Joes, etc, and sell it at high markups means I trust the pricing much less. I also suspect Amazon of marking things up more now than they used to.
And finally, their experiments with various shipping options means less reliable delivery. If something comes via UPS or Fedex, I know when it will arrive and trust the drivers will put it in the right place. But their various other shippers provide a different and usually worse experience.
When they started, it was magic. They took all the confusion and stress out of mail order. Now they've slowly been putting it back in. I'm sure it has increased the revenue metrics of various sub-sub-teams. But they've taken me from being a loyal customer to one ready to switch.
I'm with the other person saying much of the same thing. Far as less reliable, they might mean all the people and companies paid for fake reviews. Google for that to find a lot of reasons for not trusting Amazon results.
Another thing Amazon is doing is competing with companies selling product through them. Competitors might differentiate a bit by making a deal, contract and/or charter, that they will never make products that compete with those using them as an intermediary. They'll always be a facilitator and nothing else far as those kind of contracts are concerned. That could help in that current and long-term risk might be reduced.
>> And for what it's worth - Sometimes I am unable to get an Uber, but every time I call the taxi company, a taxi shows up.
FWIW from me, I have had taxi companies fail to send me a taxi, or send me one hour+ after they said they would, every time I have called them in the small cities I've been in that didn't have uber. I can count the times I didn't get an uber when I wanted one on one hand, and I get dozens of them a week...
Having worked at Amazon; one of the things I respect a lot about Amazon is that they not competitor focussed - they really do not spend much time thinking about competition; they are maniacally customer focussed. I am sure Amazon is really working on upping the game on faster delivery whether is 1 day prime for large number of SKUs or same day.
eBay, Wal-Mart, and Shopify are in the business of delivering products. They don't make the products, they make them available to the consumer. Delivery is like 90% of that. This is why amazon runs their own fulfillment centers, it's the most important part of their process.
It would be better for eBay, Wal-Mart and Shopify to merge and compete against amazon as one, rather than fighting over the table scraps that amazon leaves them.