Best Buy Tops Amazon in Delivery Speed

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Best Buy Tops Amazon in Delivery Speed

By Tim Denman - 01/27/2014
When it comes to the battle between Amazon and Best Buy for supremacy in online sales the championship belt currently resides around the waist of Amazon. Despite the online-only giant's reign over cyber commerce, Best Buy has made some strides in its delivery times, besting Amazon during the ever-important holiday shopping season.

StellaService reports that the electronics retailer was quicker to the doorstep this holiday season, trumping Amazon in delivery times in October, November and December. Best Buy's average delivery time for the quarter was 3 days compared to Amazon's over 3-day shipping speed.

The biggest weapon in Best Buy's speedy delivery arsenal is its introduction of ship-from-store. With over 400 ship-from-store locations, the retailer's large brick-and-mortar network allows it shorter delivery distances on most items compared to Amazon.

"With the rollout of ship-from-store, we are now looking at our stores strategically in relation to our longer-term supply chain strategy," Best Buy CEO Hubert Joly said. "We strive to deliver inventory to our customers when and where they want to receive it."

The news has not been good for Best Buy of late, with holiday sales numbers lower than expected its bullish 2013 stock performance took a hit in early 2014. Despite the disappointing revenue numbers there is reason to be optimistic about the electronic retailer's prospects in the increasingly-important online arena.

“It’s not just that they’ve implemented ship-from-store – they’re doing it better than everyone else,” said Kevon Hills, director of research at StellaService. “Other big-box retailers have rolled out ship-from-store, but Best Buy seems to have created a blueprint that is having a tremendous impact on its business.”
Comparable online sales grew 23.5% year over year this holiday season, the lone highlight of an otherwise disappointing holiday sales report.

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