As online retailer Amazon begins teasing deals they’ll have available July 12 for Prime Day, talks between Canada Post and the Canadian Union of Postal Workers have broken down. There’s a potential lockout coming this week and with that a work stoppage (or strike) is possible.
Amazon doesn’t seem too concerned about this and, according to a statement the company sent me, they are “monitoring the situation with Canada Post and working to mitigate any potential impact on customers.”
RELATED: Not available in Canada
Considering one of the selling features of Prime Day in Canada is that there will be three times the amount of laptop units available than there was on Black Friday and Cyber Monday combined, it’s safe to say “potential impact on customers” could be huge (Canadians love their deals).
Along with laptops, Amazon promises thousands of items will be on sale for Prime customers to eat up during Prime Day. It’s highly unlikely they can use a service like FedEx or Purolator while keeping the cost of shipping down (or free) if there is a postal strike. They also know better than to pass along extra expenses to loyal customers (especially ones that pay a yearly fee). And what about the small businesses and private sellers on Amazon? They can’t afford to lose money and are key at keeping Amazon’s model afloat.
This leads to a few possibilities. Amazon can take a hit and lose money (possible), scale back on sale items during Prime Day in Canada (highly unlikely) or use this as an opportunity to launch their own delivery service in the Great White North (I’m championing for this third option).
The idea of Amazon launching a delivery service in Canada is not that wild. In select U.S. cities, like New York, Seattle and Tampa (among many others), they are already running a service called Amazon Flex. They deliver seven days a week and can even get packages to customers within hours in some instances.
Amazon has shown they are invested in delivering their own packages around the world in the long run. They’ve mentioned they want to use drones in the future and, according to Forbes, they are looking into leasing jets. If they launched Flex in cities like Vancouver, Toronto and Montreal during a postal strike/stoppage, they are sure to make customers happy and keep them coming back. Sure makes sense to me.
Do you think Amazon should launch a delivery service in Canada? Are you concerned about Canada Post going on strike? Share your thoughts in the comments below or at facebook.com/bamcatBuzz.