Bindo, a tech company specializing in point-of-sale system for retailers, will be launching a hyper-local shopping website and app that assists local retailers with same-day delivery. The New York-based start-up company is a firm believer that eBay's (NASDAQ:EBAY) recent local pilot program, the Now app, which enables customers to purchase products from local stores for same-day delivery, is a step in the right direction for the future of retail. But Bindo wants to take the idea a step further in 2015.
Bindo first started out as a company looking for a solution to help connect consumers with local stores in order to inform shoppers about what products retailers carry, what's in stock and how to get them delivered. The idea is that consumers can think of products they need, then buy and receive those items almost immediately. The Bindo Marketplace website and app aim to make it as easy to shop locally as it is to shop online, which should be a boost for local retailers. The app and website will launch in Q1 of 2015.
"You want Advil, or a bottle of wine, or a white shirt and cowboy boots? No problem! Bindo shows you who carries it, lets you buy it and gets it to you all in the same day," said David Bozin, VP of growth development at Bindo. "Only local can provide that. The infrastructure exists. All that is left is to connect it into a giant network of local retailers providing for their community, and voila! Shopping on demand, at its finest."
Bozin stresses that the bonus of being focused locally is the time factor. The closer the store, the faster it can get into consumers' hands. He also sees it as a positive growth opportunity for the community because the more stores in the Bindo ecosystem, the more consumers buy locally, which eventually leads to more local stores and a stronger economy.
Of course Bozin acknowledges that there are some pitfalls to hyper locality. Small, local merchants can not necessarily outdo what giants such as eBay and Amazon can provide. And if a store is offering something that can be found in several other locations, at a cheaper price, they will not get business.
Bindo is set up to help local businesses manage their stores from inventory and employees to customers. Also, the company provides analytics and recommendation tools, so as more consumers purchase locally the merchant will be able to provide the community with more products they like.
"If I don't know a store exists or is a block too far away, they are not getting my business, even if they carry the product that I want. If, on the other hand, I can see that they have the product that I want and Bindo can deliver it to me ASAP, then I will buy! More discovery, more purchases," said Bozin.
The push to deliver products faster is coming directly from consumers. Therefore, local merchants need to adjust their strategies in order to compete with shorter delivery times. Bozin says retailers have two options: one, attempt to compete by applying the technology that empowers them to reach and deliver to consumers in the time frame they want, or two, lose business to those retailers who are willing to move fast.
Will consumers pay more for this speed? Although it's already been proven that time is more valuable than price (within reason), getting products "now" is becoming more of the norm, so consumers may be less willing to pay for it than before.
Amazon (NASDAQ:AMZN) is already paving the way, as the e-commerce giant recently announced the start of one-hour delivery to its Prime members in southern Manhattan. The service will cost $7.99 per order—or will be free to Prime members if the window is two-hour delivery—on tens of thousands of daily essentials through a mobile app.
"This being said, price will always be a driving force for consumer decisions, and will remain the more important of the two. When there will be multiple successful players in the space providing same-day delivery, then speed will become a commodity, which in turn gives the consumer the ability to compare price, as well as selection," said Bozin.
The future of retail will be driven by price, selection and accessibility. Therefore, the retailers who can provide the greatest selection, at the lowest price and greatest accessibility, will be winners. Bozin points out that many top retailers will have two of these three driving forces, however, the question is whether or not a retailer can achieve all three.
Google, Barnes & Noble unite for same-day delivery
Google expands same-day delivery service
Amazon launches Amazon Dash for delivery of groceries
Walmart To Go offers new grocery pick-up service for Denver shoppers
Google adds retail tracking feature into Google Now app