The customer is dead: long life to the new kings of profit, the delivery companies

Whilst many organisations would claim that they live and breathe for their customers, current reality shows that they have become trapped in pleasing their own interests, in particular they have been bending to the demands of delivery companies.

The use of information technologies in the 1990s and 2000s brought the promise that it was possible for organisations to serve customers who were almost anywhere and any time.  Fast forward now to this current year and the reality is more complex that that.  

Customers from Amazon for instance have lost the option of paying very little or nothing to get their deliveries.  Now and in order to to be delivered their products they have to pay a considerable amount.  The so called free delivery is in fact a delivery that would probably cost Amazon next to nothing.  Customers are not assured when they are going to get their products.  It is up to the transport systems and the companies that operate within those systems.  With hefty fees to pay for short time deliveries, it is no wonder that Amazon and Royal Mail are showing sustained profits. They can dictate the terms of their services to us customers.  And who are we to complain? We are just sand grains on the beach. 

Pick now Ocado, the online grocery store.  They are increasing the price of their anytime delivery monthly membership fee to £9.99 from £6.99.  You can pick anytime you want for the delivery.  Except for the fact that if you pick a time which is too soon (for instance 7am next day when you are ordering at 5pm), you will probably will not have any slot available, or some of your products will not be available either.  Ok, you can say it is about the supply chain of products, but it is also their transport system, how they organise deliveries.  It cannot accommodate overnight demand.  But you still pay the montly fee. So I am opting out.  

IKEA offers home delivery with a standard delivery option.  It takes about a week.  IKEA work together with Parcelforce, a delivery company associated with Royal Mail.  They update you with an exact date of delivery.  So you need to be there to receive the items.  You also pay a fee.  But you do not get to choose what date to receive the items.  It is Parcelforce's decision.  Based on what? Availability or their convenience to deliver in bulk in your area? Again, this is driven by the delivery company not invididual customers.  

When did premium delivery become so expensive? 

We might be victims of our own demise.  With more customers demanding the same thing (fast delivery at almost no price), we now have to put up with the realities of electronic commerce and etailing. First class letters cost more than second class.  But when did second class become subject to what the mail service wanted it to be? It is not us customers who are driving this anymore. 

I am wondering if those deciding how the transport systems that serve our deliveries are thinking beyond their own economies of scale and their profit.  They have a social responsibility to fulfil.