Categorized | National News

Courier Services Owners Distraught over Amazon offering free delivery through DHL

By Tynia Brown
Journal Staff Writer

Bahamian courier services are grappling with significant challenges as they scramble to adapt to a new
competitive environment, following Amazon’s decision to offer free delivery on select purchases over
$49 to customers in The Bahamas. This unexpected move has caused disruption just as many local
businesses were finalizing their plans for the critical holiday shopping season.
Though Amazon’s free delivery offer currently applies only to “eligible products,” a category that has not
been clearly defined, local merchants are deeply concerned about the potential impact on their sales,
particularly as they enter the Black Friday to Christmas period, which accounts for a large portion of their
annual revenue sometimes as much as 75-80 percent.
Retailers now face the difficult choice of adjusting their pricing strategies, product selections, and
inventory to stay competitive or risk losing business to the global e-commerce giant. The challenge is
further complicated by the fact that much of their holiday stock has already been ordered, leaving little
room for last-minute changes.
Many local businesses are already working to evaluate which items in their current inventory may be
vulnerable to Amazon’s pricing pressure, particularly those that overlap with the retailer’s product
offerings. Although Amazon’s promotion currently only applies to a limited range of items, the risk of
losing customers on even a few popular products could have a significant impact on their bottom line.
Concerns also center around the logistics of Amazon’s delivery system, with many wondering about
potential hidden costs, including Customs duties, VAT, and additional shipping fees. The Bahamas’
Consumer Protection Commission has called on DHL to clarify how shipments will be handled and who
will bear the financial responsibility for these charges.
The timing of Amazon’s move has left many local retailers frustrated, particularly as they are already
facing operational challenges, such as staffing shortages and difficulties managing shipping logistics.
Some businesses may need to pay overtime to employees to help assess their inventories and adjust
strategies to meet the new competition.
For many Bahamian merchants, Amazon’s latest move underscores the broader threat posed by global e-
commerce giants. While local businesses have long understood that they would face competition from
online retailers, they had expected this challenge to come from smaller, regional entrepreneurs, not from
Amazon itself.
Despite the disruptions, many retailers remain optimistic that they can navigate these challenges. They are
focusing on ways to differentiate themselves, such as enhancing customer service, offering personalized
experiences, and developing creative sales strategies like product bundling and special discounts. These
efforts, along with a commitment to innovation, could help small businesses build customer loyalty and
maintain a strong foothold in the market.
As the holiday season progresses, it remains to be seen how well local retailers will be able to adapt to the
new competitive pressures, and how Amazon’s free delivery initiative will ultimately reshape the retail
landscape in The Bahamas. While the stakes are high, many believe that with thoughtful planning and a
focus on the customer experience, Bahamian businesses can continue to thrive in the evolving market.

Written by Jones Bahamas

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