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Amazon to convince brands to ship products directly to online shoppers

Monday 3 April 2017 | 08:17 AM CET

Amazon has begun to persuade biggest brands to start shipping products directly to online shoppers and bypass chains like Walmart, Target and Costco due to ecommerce developments.

Executives from General Mills, Mondelez and other packaged goods makers will attend the three-day gathering in May 2017. The new way of selling goods will make big brands to think less about creating products that stand out in a Walmart aisle. Instead, they’ll focus on designing products that can be shipped quickly to customers’ doorsteps.

Manufacturers would have to re-imagine everything from the way products are made to how they're packaged. Laundry detergent could come in sturdier, leak-proof containers. Instead of flimsy packages designed to pop on store shelves, cookies, crackers and cereal could be packed in durable, unadorned boxes. Plants could produce products for individuals rather than trucks-full of inventory.

Persuading brands to design their packaging and operations for the online world would make it easier for Amazon to ship common household goods to urban dwellers in less than an hour, potentially making last-minute dashes to the store obsolete.

Walmart and other big-box retailers are experimenting with things like buy-online, pickup in store. Startups like Instacart and Deliv make deliveries from stores to homes, helping retailers keep up with Amazon. Looking to match the quick delivery benefits of Amazon Prime membership, Walmart offers a free two-day delivery on orders of USD 35 or more.

On the other hand, Amazon has 300 million shoppers so it can make its own products if brands aren’t willing to sell on its marketplace.

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