The Tribune

By BRENT BURROWS II

CBS Bahamas Vice-president of retail and sales

Many do not realise that the retail landscape in The Bahamas is on the verge of a seismic shift. Amazon has quietly introduced ‘Free International Delivery’ on orders of $49 or more - including to The Bahamas. This development offers immense benefits to consumers through true door-to-door service, seamless checkout and no hassles with Customs clearance, paperwork or freight forwarders.

A Boon for Consumers

With this initial roll-out, Amazon provides a curated yet extensive selection across various categories such as apparel, automotive, home improvements and more. In true Amazon fashion, pricing remains highly competitive, and is now enhanced by free shipping. Duties are calculated seamlessly at checkout and included as an ‘Import Fees Deposit’, representing Amazon’s best estimate which is typically on the higher side. If actual duties are lower, the customer receives a refund. If higher, Amazon covers the difference. Needless to say, and in true Amazon fashion, the entire process is remarkably straightforward and extremely customer-friendly.

The Challenge for Bahamian Businesses

But what does this mean for local retailers and freight forwarders? The implications are clear: An entire industry risks obsolescence. The convenience and affordability of Amazon’s service will undoubtedly draw customers away from traditional brick-and-mortar stores and freight forwarders, impacting even the emerging e-commerce sector. Only businesses that are agile, innovative and relentlessly customer-focused will withstand this new level of competition.

Addressing the Sceptics

Some may express criticism, citing concerns that the door-to-door process with DHL is too slow or that the product selection is too limited. However, these are no more than temporary growing pains. As the programme matures, we can expect faster delivery times and a broader array of products, eventually leading to the majority of Amazon’s catalogue becoming available. Logistics will improve, and the customer experience will become increasingly efficient and user-friendly. There is no reason why Amazon’s service to The Bahamas will not eventually mimic the seamless and lightning-quick experience offered within the continental US.

Adapting to a new retail era

This shift places inventory strategy at the forefront for local retailers, necessitating a more refined approach. My personal belief is that as consumer habits evolve, we will see somewhat of a ‘reversal’ in what draws customers through the doors. With this habit swap, customers will increasingly turn to Amazon for popular, high-visibility items rather than sourcing them from local shops. Instead, they will visit local stores primarily for unique or urgent essentials - specialised items needed to complete a task or solve a specific problem. Once in-store, customers may then pick up additional products - the items that used to serve as the main draw - as secondary purchases.

Directly marketing these “must-have” or “feature” items, which previously may have been responsible for a large draw of customers, will begin to prove less effective, as local retailers often cannot compete with Amazon’s pricing, and demand significantly diminishes with reduced urgency and convenient online access. This new landscape demands a strategic focus on unique, practical offerings that keep customers coming through the doors.

Enhancing the In-Store experience

Beyond inventory, two factors become essential for local retailers to stay competitive: The opportunity for customers to physically interact with products and the expertise of store associates. As well-priced online options become more accessible and appealing for standard purchases, the in-store experience must deliver value that e-commerce and low prices cannot replicate.

This shift requires a higher standard for merchandising and store layout. Attractive displays, point-of-purchase materials and thoughtfully designed environments become critical - not just to showcase products but to help customers visualise solutions and inspire confidence in their purchase decisions. Every aspect of the store should be curated to enhance the experience, making it a destination rather than just a place to buy things.

Hiring also takes on new importance. Retail associates will no longer be entry-level workers or individuals supplementing other pursuits. These roles will demand specialised skills, including deep product knowledge, technical expertise and exceptional customer service. Associates must serve as advisors and problem-solvers, guiding customers with insights that add genuine value to their in-store experience.

As a result, retail positions must be reimagined as career paths, with competitive compensation and ongoing training. For retailers, investing in highly-skilled associates and thoughtful merchandising is not just a tactic - it is essential for sustaining relevance in a market that Amazon is actively reshaping.

Embracing Innovative Strategies

To remain viable in this new landscape, I implore local retailers to think outside the box and modernise their approach to meet evolving consumer expectations. For example, introducing a rental programme can offer customers access to products they may not want to purchase outright, fostering loyalty and repeat business. Implementing price-match guarantees assures shoppers they are getting the best deal locally, reducing the temptation to turn to online competitors. Additionally, adopting lenient return policies can enhance customer satisfaction and build trust, making the local shopping experience more appealing. By embracing these innovative strategies, retailers can provide unique value propositions that set them apart from giants such as Amazon, encouraging consumers to continue supporting local businesses.

A Call to Action for the Government

While many may be looking to the Government to solve such an issue through regulation, I would 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 such as 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. This approach would not only strengthen the economy but also ensure that Bahamian retailers and service providers can innovate, grow and meet the evolving needs of their communities in a truly free market.

The Path Forward

Change is inevitable, and resisting it is futile. The arrival of Amazon’s ‘Direct to Bahamas’ programme is not just a challenge but an invitation for local 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.

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