Will Amazon allow sellers to swim across the "Multi-channel?"

Very recently, I was shopping on an e-commerce website where, on proceeding to checkout, I was prompted with multiple delivery options – “Deliver to address”, “Pick up at a nearest store”, “Pick up at a Fed-Ex depot” etc. There were also multiple delivery services available to choose from – “Standard 4-5 day delivery”, “Express 2-3 day delivery”, “Scheduled delivery” and “Same day delivery”. The shipping price on the basket varied every time I changed the combinations and tried multiple permutations of delivery options and services. 

Just think of a retailer like Amazon or eBay. Can we have a multi-channel or a cross-channel experience with these retailers? Quite possibly. But we don’t experience this currently. Today, the delivery options and services are defined by the marketplace (Amazon or eBay), and sellers do not have the flexibility to provide their own delivery options to their customers. The marketplace would have exclusive contracts with the sellers and great deals from third-party logistics (3PL) carriers like UPS to this effect. They probably make more revenue on shipping charges than on book margins. But it’s worth considering that maintaining such varied delivery options can be a nightmare for the marketplace, unless they have a custom built solution.

Would a marketplace want to enable “sellers” on their network to provide Localized Shipping Options (LSO) wherever possible? For example, if a seller wishes to service a delivery option such as “Pick up from store” in a specific geography, then would the seller have an option to do so? Moreover, sellers should be able to customize -- or rather, personalize -- delivery options based on their business model. But will so many delivery options and charges and services confuse the customer? Needs some thought.

For multi-channel commerce to evolve on an online marketplace, it is essential for sellers to have this flexibility. I would love to buy a product from a seller on eBay and have it picked up from the seller’s nearest store or kiosk. Would Amazon or eBay really want to allow sellers all this flexibility? Probably not, because of the reasons I have cited above.

Multiple channels of fulfillment can provide ease of shopping to customers, help increase customer base and customer satisfaction, and also make it easy for sellers to fulfill orders; rather than eat into marketplace revenues. This is much better than making money on shipping charges. Moreover, the ones who adapt this strategy first, may end up being more competitive and will provide a better marketplace experience. Plus, the big-company sweetheart deals with 3PL carriers can continue. I’m sure there can be an ecosystem where multiple channels of the sellers, their “Customized Delivery options”, and Amazon’s deals with UPS can coexist.

Amazon has made an attempt at going multi-channel. I read an interesting article about Amazon Lockers, which are basically large, automated PO boxes, designated exclusively for Amazon purchases. If you choose to add a locker location to your address book, your package will be placed in one of these kiosks and you'll be given a pass code to unlock a particular slot at the location of your choice. I may not be able to take a home delivery but may prefer dropping by the nearest Amazon Locker, sign in and pick my parcel.

Will marketplace retailers such as Amazon and eBay consider jumping on to the “Multi-Channel Commerce” bandwagon? Will the deals with 3PL carriers go for a toss with the evolution of a “Multi-Channel Marketplace?”uncaptioned

I have worked extensively in the area of multi-channel order management. I have played a key role in defining the strategy and business processes for large retailers in ...