Skip to main content

Advertisement

Advertisement

As delivery woes continue, Amazon’s bumpy Singapore debut raises eyebrows

SINGAPORE — Amazon’s bumpy debut in the Republic, with consumers unable to place fresh orders for a second consecutive day, has caught consumers and experts alike by surprise. But they said the initial setback is unlikely to dent the online retail giant’s appeal — for now.


Singaporeans who tried to shop using the company’s Amazon Prime Now app on Friday (July 28) were told that their orders could not be fulfilled, as all the delivery time slots up to Saturday had been taken up. Photo: Koh Mui Fong/TODAY

Singaporeans who tried to shop using the company’s Amazon Prime Now app on Friday (July 28) were told that their orders could not be fulfilled, as all the delivery time slots up to Saturday had been taken up. Photo: Koh Mui Fong/TODAY

Follow TODAY on WhatsApp

SINGAPORE — Amazon’s bumpy debut in the Republic, with consumers unable to place fresh orders for a second consecutive day, has caught consumers and experts alike by surprise. But they said the initial setback is unlikely to dent the online retail giant’s appeal — for now.


Users in Singapore who tried to shop using the company’s Amazon Prime Now app on Friday (July 28) were told that their orders could not be fulfilled, as all the delivery time slots up to Saturday had been taken up. The message was later revised to a more generic one that gave no indication as to when orders could be fulfilled.


Those who successfully placed orders were not completely satisfied either.


Ms Rachel Ng said she had to wait for more than six hours on Thursday before she was given a delivery time slot. The scheduled delivery time for her groceries - between 2 to 4pm at her home in Hougang on Saturday (July 29) - was also pushed back by two hours.


The 36-year-old accounts executive told TODAY: “I tried to change the delivery timing, and told them if that was not possible, they could cancel my order. But that could not be done.


“I can’t believe that Amazon, an international company, can be so inflexible.”


When asked about the hiccups involving its service, an Amazon spokesperson said the company is “rapidly opening up new windows to ensure we can continue delighting customers in Singapore.” The spokesperson did not elaborate. 


The delivery woes had surfaced as early as Thursday, hours after Amazon’s official launch in Singapore.
E-commerce experts said that the Seattle-based company could have underestimated the strong demand in Singapore.


“The demand here (for online shopping) could be higher than what it used to be. Demand now could be twice, or thrice as much as historical records show,” said Associate Professor Ang Swee Hoon of the National University of Singapore Business School.


While teething problems are to be expected in new operations, she said she did not expect a global player like Amazon to experience major delivery issues, adding: “I was a bit surprised that they would encounter such a problem as they are so established, and considering that they would have had to handle a lot more orders in the United States.”


Mr Samuel Tan, a course manager in retail management at Temasek Polytechnic, said one reason for the delivery woes could be that Amazon’s receiving systems here are unable to handle the surge of incoming orders.


“The turnaround time – the time need for orders received and workers to pack the orders – could also have led to the delay of deliveries,” he added.


The Amazon spokesperson said the company “works with a variety of locally-sourced delivery partners to get thousands and thousands of packages to customers each day”.


Assoc Prof Ang said that Amazon could have done more to circumvent the problem, such as by increasing their inventory before their launch. “They could have prepared not just for sales in Singapore, but regional sales as well,” she noted.


But both experts agreed that Amazon’s strong global image will help the retailer weather the initial setback.


“Consumers have short memories. They may be put off and infuriated in the beginning but companies like Amazon can easily make up for it,” said Assoc Prof Ang. “They may also be more forgiving seeing as the retailer is new and has just launched their service.”


Marketing executive Lim Zi Jian, 24, said that the two hour delivery time does not affect him much, so as long as he gets his goods on the same day. Photo courtesy of: Lim Zi Jian

 

Some early Amazon customers here have been forgiving so far. Marketing executive Lim Zi Jian, who received his order in four hours instead of two on Thursday, said he did not mind the longer delivery time.


“It was launch day so I gave them some slack and adjusted my expectations,” Mr Lim told TODAY. “To me, the two-hour delivery time does not matter much, so as long as I get my goods on the same day.” 


The 24-year-old had ordered some office supplies for a start-up business he was working for, located at Blk 71, Ayer Rajah Road. 
He added that he hoped to see corporate discounts offered for bulk orders.

“I think some consumers make bulk orders for their companies, so having corporate discounts would be good,” he said.

Read more of the latest in

Advertisement

Advertisement

Stay in the know. Anytime. Anywhere.

Subscribe to get daily news updates, insights and must reads delivered straight to your inbox.

By clicking subscribe, I agree for my personal data to be used to send me TODAY newsletters, promotional offers and for research and analysis.