Question

In: Economics

What are the advantages and disadvantages of Amazon Key for the customer? What are the advantages...

  • What are the advantages and disadvantages of Amazon Key for the customer? What are the advantages and disadvantages of Amazon Key for Amazon? (Okay to use bullets for this question) Do you believe that any of these new options will enhance/hurt the relationship Amazon is creating with their customers? Explain your answer. Research other new delivery options used by (or being considered) by Amazon. Are any of these better than Amazon Key? Why or why not? Explain your answer. Would you use a service like Amazon Key? Why or why not? Explain your answer.

Solutions

Expert Solution

Advantages for the customer: Access to the parcel and no fear of getting it stolen, ontime delivery as per their need and no hassle in terms of searching for the parcel with the neighbour, or loosing the parcel and the money.

Disadvantages for the customer: Providing access to the entire household/car. Increases the chances of someone stealing the car, or the person knowing the layout of the house. The key is also an additional cost to the consumer.

Advantages for Amazon: Amazon can reduce the chances of taking the blame when the parcel is stolen, this will increase customer service and ensure timely and efficient delivery of the parcel, it will also reduce contact in such social distancing times, which will further increase orders as people want to reduce as much human contact as possible.

Disadvantages for Amazon: If anything goes wrong with the key, then Amazon will suffer as a company. If someone is able to hack the system then no one will opt for this service, proving it more riskier to buy this key, thus it will jeopardize innovation at Amazon.

Amazon is ensuring customer safety with the use of several authentications and wants to ease customers burden, thus it will actually enhance the relationship depending on the efficiency of Amazon key.

Amazon day delivery is better than Amazon key as it delivers the product when the customer schedules it to be dropped, this reduces the chances of it being stolen, of the delivery person getting access to the house, increases the chances of parcels getting clubbed together.

I would not use a service like Amazon key as I have to pay for a product, secondly I am not comfortable giving access to a delivery agent to the house/car, plus it delivers as per their convenient time, whereas I want it to be delivered as per my schedule, plus if it is grocery, the product will go waste if it is not refrigerated on time.


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