Would you give the keys to your house to Amazon? Before answering, read this!

Well, this new service from Amazon that will be available starting November 8th in 37 US cities will ask you to do just that: Give the Giant the keys to your house. This service is called Amazon Key.

What is Amazon Key? It is a service offered to all Amazon Prime members who order online. The operation is very simple. The deliveryman arrives at your address and scans your package. Then, you immediately receive a notification on your phone and a signal is automatically sent to Amazon Cloud, which unlocks the smart lock on your front door. At the same time, a security camera installed in your house is activated to record and film the deliveryman who deposits the precious package in your home (you can watch it live on your mobile). In real time, Amazon sends you a message that the package is delivered, including the video of the visit.

What’s the point … frankly, do we need to go so far?

There are three main reasons why this will likely be a success:

1) It’s a customer request:  The VP, Technology simply states that they are responding to a request that has been around for a long time. More than 23 million Americans said in 2017, that they had goods ordered online, delivered and then stolen. The problem is that leaving parcels in front of customers’ doors who are not there, makes it is very easy for a passerby to see them and steal them. Some services allow you to pick up your package at the nearest postal office if you are not home, but this causes a trip for the customer … so why buy online in this case? Amazon Key is Amazon’s response to this problem. The service will be available to members of Amazon Prime, a growing community of more than 85 million members across the United States. It is estimated that members spend an average of more than US $ 1,300 each year. Amazon thinks that with this free service, more consumers will be tempted to order online, including items of greater value. The ultimate goal is to destroy the barrier that exists for some buyers when it comes to buying online. Indeed, many are not there during the day and, for this reason, refuse the home delivery. 

2) Concerns about delivery are now the last obstacle to buying online! It is therefore a major business imperative for Amazon to fill this comparative disadvantage. Removing the delivery concerns allows Amazon to increase its share of the portfolio compared to traditional retail.

3) It’s a clever way to build customer loyalty: how? This “free” service is not free. Amazon praises its service as free, but in reality, it is not, since you still need to get the starter kit, that is to say the smart lock and the surveillance camera. Everything is sold for 250 USD … by Amazon, of course. So you have to be a good buyer to be able to pay back this starting fee. You will want to make your investment profitable. And Amazon knows everything about Amazon Prime’s impact on its customers’ purchases. Nothing escapes them …

We’re pushing even further: Do you want Wal-Mart to deliver your groceries directly to your refrigerator?

Another well-known American giant is testing a similar service in San Francisco: Wal-Mart has partnered with August, a manufacturer of smart locks, to deliver merchandise to its customers to make their lifestyle easier. Much more than a simple service to deliver packages ordered online, it also tests the delivery of the complete grocery. In other words, the Wal-Mart delivery guy will come to your house and not only deliver your food, but also put it in your fridge!

Although the idea may sound far-fetched at first, and especially risky, it is not so much in the end. We often find ourselves in situations where we have to trust strangers without really realizing it. Think about UBER, but also Airbnb, the site that allows you to rent your home to make a profit. So you may already be welcoming strangers to your home!

Think about it! Marketing comes down to two market opportunities: the customer wants to save money or save time. Amazon Key can do both, when you think about it. Is it so risky, finally? It remains to be seen who will be the users of this service.

Finally, we must understand that giants such as Amazon and Wal Mart seek to resolve the concerns of online shopping. They work hard to make sure more consumers use their platforms. It is not for nothing that 43.5% of the online purchase is done entirely on Amazon right now. It’s only a beginning. Let’s stay calm!

Sources
https://www.youtube.com/watch?v=8bOuVjbcTgs
https://techcrunch.com/2017/09/21/walmart-partners-with-smart-lock-maker-august-to-test-in-home-delivery-of-packages-and-groceries/
http://www.businessinsider.com/walmart-vs-amazon-in-home-delivery-2017-10

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