Youri Kemp, Nassau Guardian, November 12th, 2024
The Bahamas Chamber of Commerce and Employers Confederation (BCCEC) said yesterday that Amazon’s free-shipping to The Bahamas initiative is an “imminent threat to market share”.
“The Bahamas Chamber of Commerce & Employers’ Confederation has noted the recent development of Amazon offering free shipping to the Bahamian market and the concerns from the business community, specifically those in the freight, logistics and retail industries whom we have been in contact with regarding the same,” the chamber said.
“Indeed, with this new initiative from Amazon, there is an imminent threat to the market share and continuity of a variety of sectors.
“It begs the following considerations: How should local retailers respond to this threat? Should they set up a store on Amazon to fulfil local orders? Given the major advantage of online shopping, are more retailers pushing to get their businesses online, truly diversifying and digitizing their products and services to serve the modern buying public? With the Trump administration proposing tariffs on some goods and services, will Amazon’s competitive pricing be impacted and does this create an opening for Bahamian retailers to import directly from China, South America, Africa and other global markets to offer products at competitive prices?”
Amazon announced that in addition to offering shipping on select items to The Bahamas, it is now running a free shipping promotion to the country as well. According to Amazon, customers that spend over $49 on eligible items will see a free delivery offer at checkout. Amazon offers shipping to The Bahamas via DHL.
Amazon’s announcement was met with praise by consumers on social media who criticized local courier companies for being too expensive or taking too long to deliver packages.
The Chamber of Commerce encouraged local couriers to get creative to keep their customers.
“Initiatives like loyalty programs, bulk discounts, and concierge services would help in retaining market share as customers still chase convenience,” it said.
“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 incentivizing consumers to buy locally is a part of the battle won.
“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.”
The chamber said it will continue to monitor the situation to ensure that it is in the best position to assist its members to “adjust their strategy to this new threat”.
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