By FAY SIMMONS
Tribune Business Reporter
jsimmons@tribunemedia.net
The Bahamas Chamber of Commerce & Employers Confederation (BCCEC) yesterday acknowledged that Amazon’s ‘free delivery’ move poses an “imminent threat” to the survival of several local industries.
The private sector body, in a statement, urged Bahamian shipping and freight companies to innovate in response to the competitive threat posed by the world’s largest online retailer and e-commerce marketplace offering free delivery to this nation on all purchases of “eligible products” worth $49 or more.
And it also called on local retailers to consider how they can diversify their offerings, and digitise products and services, to meet consumers in an increasingly digital and online world. “Indeed, with this new initiative from Amazon, there is an imminent threat to the market share and continuity of a variety of sectors,” said the Chamber in a statement.
“It begs the following considerations: How should local retailers respond to this threat? Should they set up a store on Amazon to fulfill local orders? Given the major advantage of online shopping, are more retailers pushing to get their businesses online, truly diversifying and digitising their products and services to serve the modern buying public?”
The Chamber also questioned how Amazon’s competitive pricing will be impacted by the Trump administration’s potential new and increased tariff proposals, and if this will create an opportunity for Bahamian retailers to import goods directly from China, South America, Africa and other global markets at more competitive prices.
“BCCEC has been working closely with the Trade Commission to launch the Trade Diversification Programme, and Bahamas Bureau for Standards and Quality (BBSQ) for quality control, to provide access to alternative markets to improve our competitiveness and combat the inflation we have seen over recent years, which may be viable options considering these developments,” said the Chamber.
It added that Amazon is only offering a streamlined list of products for free delivery to The Bahamas, while delivery times for the new ‘free delivery’ option may be longer than those provided through local courier companies. Shipping companies were encouraged to capitalise on providing shorter delivery times, and work to collaborate with Amazon to establish shipping hubs.
“We note, even if only initially, that there is a streamlined list of products available for the free shipment method, perhaps as an introduction to the local market,” said the Chamber.
“Anecdotal evidence suggests extended estimated delivery times with the free local shipment option. This provides the opportunity for local couriers to capitalise on procurement and importation of the goods, offering much shorter delivery timeframes not presently available for the free shipping option, while strategising for collaboration with Amazon as alternative shipping hubs with their local offices as well.”
The Chamber encouraged merchants to improve their competitiveness by implementing initiatives that benefit consumers, such as loyalty programmes and bulk discounts, to incentivise consumers to shop locally.
“For the retail market, customers have the benefit of instant gratification through real time purchasing power without incurring lengthy delays to receive goods and services required. There will inevitably be clients that still opt for delayed fulfillment of their retail needs should the price and specificity be met,” said the Chamber.
“The BCCEC encourages the impacted business community to be creative in the way they market and incentivise clients to continue patronising their businesses despite this new avenue, even as they work to move their business online.
“Initiatives like loyalty programme, bulk discounts and concierge services would help in retaining market share as customers still chase convenience. This may also entail rate adjustments and customer service enhancements to ensure competitiveness in the refined market.
“Marketing campaigns that promote the features and benefits of their products and services, while encouraging and incentivising consumers to buy locally, is a part of the battle won.” The Chamber also encouraged shipping companies to form an association that can represent their views and help solve industry-related issues.
“Moreover, we strongly recommend that local couriers form an association to better foster the solidarity needed to address challenges like these that may arise. Together, their collective efforts would yield the best results for the industry,” said the Chamber.
“BCCEC would be pleased to assist with this process should there be shared desire among the local companies. As the voice of the business community, BCCEC has begun our initial assessment of the landscape and potential partnerships while working with the local couriers and retailers to chart the course ahead. We will continue to monitor this situation to ensure that we are in the best position to assist our members adjust their strategy to this new threat.”
Comments
ThymeOnline 1 week, 2 days ago
Customs duties, and the insane costs of freight forwarders pose a bigger threat no?
rosiepi 1 week, 2 days ago
That depends on whom the threat is directed and given who the BCCEC represents and the consumer has not nor will be protected from any such threats. Especially given that the Bahamas Bureau for Quality Standards has so far been a non performer as well for Bahamian consumers!
This is a big deal for small businesses here given their reputation for price gouging and for long suffering customers. My example below shows the inequities.
For example once I put my address as in Nassau Bahamas I was offered a long list of products to choose from in every category, certainly not “only a stream lined list” and the customs duty and VAT is shown as well. There are some delivery charges within the Bahamas shown such as for a large screen TV ($188) (and the VAT & customs duties are shown and they are correct) but it must be noted that DHL offers pickup as well.
If I choose to purchase a smaller Dell laptop 12th Gen Inspirion 15” 16RAM 512SSD for $578 there is no duty of course but the VAT/1% fee calculated to roughly $65 is much lower than the retail store in Nassau offering it for $900 VAT inc. The weight is under 4 lbs.
So yes the end is nigh!
truetruebahamian 1 week, 2 days ago
Also the ridiculous. Value Added Tax slammed on duty charges.
Porcupine 1 week, 1 day ago
Welcome to the real world Bahamas. Where gross inefficiency is a thing of the past, except for government employees. Where real customer service is there for all to see. Where price gouging will only remain in taxes and food prices. When the day of reckoning is upon us and we realize we have been asleep at the wheel for far too many decades. Perhaps we would have the vision to eliminate Customs Duty altogether and move toward an equitable and fair way of taxation that spreads the burden over all our people instead of just the poor and wor,king class. Customs has been the perfect way to help keep this country corrupt and the corrupting influences of Customs officers, politicians and the rest of us. To move ahead in this country with vision and fairness to bring about a true middle class means removing every entrenched politician that resides in this country. The present PLP administration will go down in history as one of the most corrupt and incompetent administrations in the history of The Bahamas. Time to clean house completely. Leave none standing to infect the newcomers. Get rid of them all.
GodSpeed 1 week, 1 day ago
I don't really get the fear because it's not like people are just now going to start ordering from Amazon, been ordering from Amazon for years. Know how you could beat Amazon though? Just do what they do, build a website that works well where I can shop Bahamian stores online, come all together and build one website if need be, then allow me to order and pay online, deliver or allow me to pick up from a secure location. But you're too lazy and incompetent for that.
moncurcool 1 week, 1 day ago
You hit the nail on the head. We don't like competition and fail to realize the world is global. Next, you will hear the unions start crying about what Amazon is doing.
bcitizen 1 week, 1 day ago
Do not care and do not give a sh$t. The Bahamas gov, retailers, and consumers hung the agri sector out to dry decades ago and no one cared. I can not wait for a Walmart to open up in Nassau. I think it should be a national priority. It is all about the consumer right? Until no one has jobs to be able to consume anything. I guess I could always get me one job at road traffic or the post office or something.
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