The Tribune

By NEIL HARTNELL

and ANNELIA NIXON

Tribune Business Reporters

Bahamian retailers, courier companies and freight forwarders were yesterday put on alert over a “seismic” competitive threat after Amazon confirmed it is offering ‘free international delivery’ to this nation.

Brent Burrows II, CBS Bahamas’ vice-president of retail and sales, told Tribune Business that “now’s the time” for operators in these industries to develop a survival strategy after the world’s largest online retailer and e-commerce marketplace confirmed that the free delivery on purchases of “eligible products” worth $49 or more currently has no end date.

“The ‘International Free Delivery’ is available on eligible products shipped to The Bahamas (all major islands) and are part of orders worth $49 or more,” Amazon wrote in reply to this newspaper’s inquiries. “Not all items are eligible for the Free Delivery promotion. Look for ‘FREE Delivery to Bahamas’ when you spend over $49 on ‘eligible items’ throughout your shopping journey.

“Once you have a cart with eligible items and exceed the threshold, you will see the ‘Free Delivery’ promotion option at checkout. The promotion is part of our continuous effort to provide greater value to our customers worldwide, and we have not announced an end date to this promotion.”

So-called ‘eligible products’ were not defined, but Mr Burrows said Amazon’s move is a wake-up call for Bahamian retailers, couriers and freight forwarders to quickly assess and adjust their business models to remain competitive and differentiate themselves from global corporate giants given that others will likely follow Amazon’s lead.

Writing on Page 18 in Tribune Business today, he called on companies in those sectors to stay close to customers and their needs. From a retail perspective, Mr Burrows suggested that merchants assess their product offerings and focus on those goods that are either “unique or urgent essentials” or ones that shoppers traditionally like to test and try-on before purchasing.

And, to gain further competitive advantage, he argued that Bahamian retailers may have to move up-market and focus on higher-end, specialist items to escape having to compete with the likes of Amazon on price. This, in turn, will require the industry to improve customer service and no longer rely on “entry level staff” as consumers will want to engage with workers knowledgeable about what they are selling.

While some were likely to call for regulatory intervention by the Bahamian government, Mr Burrows dismissed such an approach. Instead, he argued that it must now create a ‘level playing field’ for Bahamian companies to compete as equals by eliminating unnecessary red tape, bureaucracy and regulations that add to already-high expenses and undermine ‘the ease of doing business’ in this nation.

Mr Burrows, in a subsequent interview with this newspaper, said he had tried out and completed - but not submitted - an ‘international free delivery’ application on Amazon’s website. Bahamian import duties are “calculated seamlessly” at checkout and, if the actual payment is lower, Amazon refunds the difference. If the duties are higher, the online marketplace also covers the balance.

The CBS Bahamas chief added that such a system has already been proven as effective by Starlink, the satellite Internet provider created by billionaire entrepreneur and now prime Donald Trump backer, Elon Musk. Bahamians, he said, can go on Starlink’s website, put in their address, “the price sets itself” as a full price with no import duties added, and good ordered are delivered via DHL.

Stating that Starlink’s operation has been going on for about a year, Mr Burrows said there was nothing to stop the likes of Wal-Mart, Home Depot and Target following its and Amazon’s lead and using their buying power, economies of scale and market clout to launch similar operations that undercut local operators on price. 

“People need to understand that now’s the time to figure out what they’re going to do about this, and it’s only going to get harder with more competition,” Mr Burrows warned. “It’s time to figure out what goods are working for them, and position yourself so that you don’t get left behind from a retail point of view.

“People need to look at what they’re doing, what is bringing in customers through the door. It’s something we’re worried about as well, but it’s also a cool opportunity as well.” He explained that CBS Bahamas is focusing on the goods and items for which shoppers seek advice from its associates for as these will not be such popular sellers on online marketplaces such as Amazon.

Amazon’s move was greeted with a mixture of trepidation and uncertainty by Bahamian retailers, couriers and freight forwarders yesterday, with many declining to comment amid suggestions - which proved incorrect - that this nation was not being targeted for ‘free international delivery’.

Mr Burrows said such scepticism “worries me”, as local businesses then get complacent and lulled into a false sense of security, thinking that the delivery and logistics process takes too long or that there are insufficient products available. “

“They’re going to get it to work pretty quickly,” he added of Amazon, “and then there will be Wal-Mart, Home Depot and Target, so there’s no reason to think they can’t get it to work that way..... It’s a good eye opener and something to prepare for.

“Amazon quietly added The Bahamas’ option a few months ago. It’s only gaining traction because they have just started shipping orders. The main beneficiary here is the customer. They’re either going to have reduced costs with the Amazon experience or a much better customer experience locally as local businesses try to keep up.

“It will be interesting to see. A lot of people in true Bahamian fashion will expect the Government to come in and regulate this. My hope is that the Government steps in to make it easier to do business in The Bahamas and, if done, that will be the proper solution.”

Writing in Tribune Business today, Mr Burrows said: “While many may be looking to the Government to solve such an issue through regulation, I’d argue for exactly the opposite. To support Bahamian businesses in remaining competitive in an increasingly globalised market, it is imperative for the Government to reduce restrictions and streamline regulatory processes that currently burden local enterprises.

“Excessive red tape, complex import procedures and restrictive trade policies place Bahamian businesses at a disadvantage, especially as international giants like Amazon expand their services here. By easing these restrictions, simplifying tax structures and fostering a more business-friendly environment, the Government can empower local companies to compete on a level playing field.”

Warning that “resistance to change is futile”, the CBS Bahamas chief said Amazon’s move was both a challenge and an invitation for Bahamian businesses to innovate and improve.

“Businesses that have relied on outdated models or have been slow to adopt new technologies will find themselves left behind. By embracing competition and focusing on areas where they can excel beyond the capabilities of an online giant, businesses can not only survive but flourish,” Mr Burrows added.

“In the end, consumers stand to benefit the most from this evolution, enjoying better services, more options and competitive pricing. It’s up to local businesses to rise to the occasion, adapt to the changing landscape and continue to play a vital role in our economy.”