Why the Amazon Prime Price Increase is Good for Retailers

Although Amazon will set consumer expectation, the good news is that an expectation of same-day delivery evens the playing field for retailers. The proximity of stores to consumers puts retailers in a position to offer premium same-day services, such as eBay Now's 90-minute delivery or Google Shopping Express’ scheduled delivery. Even with a premium-priced offering, Amazon would be hard-pressed to offer these delivery service levels without a significant investment, leaving retailers with a competitive differentiator for which increasing numbers of customers expect to pay more.