Comment: Amazon is winning the race in retail innovation

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This week, Amazon revealed that it is developing a system to send items to shoppers before they have actually ordered them.

The retailer will use predictive demand analytics and has filed a patent ‘anticipatory package shipping’ in the US.

Using its customer database, the pure-play retailer will be able to predict what customers will order in certain locations and use this information to send the packages without an exact address to shippers’ hubs. Once the order is made, the delivery address will be added.

This development is the latest in a long string of innovations from Amazon. The past year in particular has been a very busy time at the online retail giant.

First came the news that Amazon plans to use closed ticket offices in the London Underground as collection points for its click-and-collect customers.

This will offer online consumers much more convenience by allowing Amazon to go to the shopper, rather than making the customer go to an inconvenient collection point.

Secondly Amazon is testing unmanned drones to deliver goods to customers. The drones, called Octocopters, could deliver packages weighing up to 2.3kg to customers within 30 minutes of them placing the order. Although this service may not be available for another five years, it showcases Amazon’s forward-thinking nature.

All these developments demonstrate Amazon’s ability to put the customer first and to continue improving its business model.

Amazon was the one of the first to truly tap into the power of ecommerce. However, with nearly every major retailer now providing an online business, Amazon has had to work hard to show that it is still at the forefront of innovation.

Amazon is a great example of a business that never rests on its laurels. With its Silicon Valley heritage, Amazon keeps investing in new technologies to satisfy customer demand and constantly improve its service, all the while returning value to its shareholders.

Amazon continues to give other retailers an example to follow, just as it did with its initial online business.