Monday, December 9, 2013

DANGER AHEAD - Jeff The Retail Giant Killer Strikes Again, But Did He Finally Make A Fatal Error ?


Jeff The Giant Killer Strikes Again,

Outmaneuvering The Retail Giants. . Again.

For years, Jeff Bezos has single-handedly led retailers away from the hidden realities (Chart 1) of the $4 Trillion Online V-Commerce Market he intends to dominate. (Chart 2)

He skillfully led them to a place of failure (Same-DAY delivery) to Jeff’s significant benefit,

Exactly as in the Fairy Tale:  Jack The Giant Killer.

As farfetched as this may seem to some of you,

Even this Fairy Tale pales in comparison to Jeff’s astonishing success, as most retailers already know the hard way.

It’s mostly due to his continuing and clever deceptions that have already led to the death of myriad retail Giants (e.g. Border Books, Circuit City, Blockbuster, etc.)  – just like in the Fairy Tale.

For years, we’ve been warning retailers that “The Key to The Giant’s Castle” is 30 to 45 minute (Same-HOUR) fulfillment and delivery (Chart 1),

But Bezos convinced them Same-DAY was the Secret to Success, instead of the Consumer’s #1 Choice:  Same-HOUR Fulfillment  (Chart 1),

And everyone quickly endorsed that erroneous conclusion,

Ignoring The Obvious Reality: 
Same-HOUR is less costly than Same-DAY when done right,

AND Same-DAY offers far less Consumer Convenience (33% want Same-DAY),

Than the Consumer’s #1 Choice: 30 to 45 Minute (1-HOUR) fulfillment (83% prefer Same-HOUR). See Chart 1

Then, To Everyone’s Complete Surprise:

Last week, Jeff announced his new 30 Minute Prime-Air “OctoCopter” DRONE Fulfillment Service,

Delivering from his huge new nationwide automated local area warehouses.

Secretly, he’s been quietly developing his Same-HOUR service for some time now,

While letting you believe Same-DAY was his sole objective !

Brilliant Deception – AND IT WORKED – AGAIN – (here’s the U-Tube Prime Air Video if you haven’t already seen it)

NO QUESTION ABOUT IT:  Jeff’s “OctoCopter” DRONES absolutely trump his Same-DAY Service for 80% of his inventory units,

Given the FAA finalizes its new rules governing use of unmanned aerial vehicles in Jeff’s favor,

This will happen when all the objections and difficulties are overcome (especially with someone like Jeff behind it).

All while most retailers are still trying to duplicate his Same-DAY service that he will eventually mostly phase out for all the right reasons.

IN THE MEANWHILE:  This huge Same-DAY Red Herring,

Just gave Jeff a clear and unobstructed pathway to the $4 Trillion Online V-Commerce Market,

Including time-sensitive items like groceries and restaurants and fast food’s “Hamburgers, Fries & A Coke”

Which collectively comprise over 60% of the $4 Trillion Online V-Commerce World Market.

All because major retailers bought into Jeff’s deception,


(1)   The Consumer’s #1 preference of 30 to 45 Minute (1-HOUR) fulfillment (Chart1)

(2)   Increased V-Commerce “Networking” Profits

(3)   The opportunity to finally offset Amazon

30 to 45 Minute (Same-HOUR) Rapid Fulfillment always has been the Consumer’s #1 demand,

Which we’ve been trying to tell Bricks and Mortar retailers for the last 7 years, with amazing difficulty,

Until J. P. Morgan came to our rescue in July, 2013 – Chart 2.

And that Jeff’s “OctoCopter” now confirms.

Then, as if that isn’t bad enough;

The Same-DAY Bridge everyone was crossing just collapsed mid-stream,

With the 2013 Cyber Monday’s 19% growth rate triple-trumping Bricks & Mortar store’s Black Friday sales, which, for thefirst time fell 2.9%.

Reality Check:

Things like “Beam-Me-Up-Scotty” and Jeff’s “OctoCopter”  (that Domino’s Pizza and others were testing months ago),

Are things that are Certainly Going To Happen sometime in the future.

But today’s Consumers want FREE 30 to 45 Minute 24 / 7 / 365 Rapid Fulfillment OF EVERYTHINGDelivered In A Flash® . . . . TODAY

Not just a few, small, light-weight items sometime in the future  . . . . . Maybe.

And remember The 4 V-Commerce Pillars which are essential to any successful 30 to 45 Minute FREE 24 / 7 / 365 Rapid Fulfillment V-Commerce Network:

1.      The RIGHT SIZE Professional WELL PAID “Shared” Workforce Pool of Drivers and Customer Service Reps.

2.      A full Consortium of local participating retailers is critical to supporting this huge workforce pool needed for V-Commerce Critical Mass,

That one retailer alone could never achieve – even Walmart.

AND Amazon is proportionately a bigger threat to local bricks & mortar “Mom and Pop” retailers than Amazon is to you.

3.      To attract the order volume needed for items 1 and 2 to achieve Critical Mass,

The right Major Anchor Tenant (Marketing Partner) is absolutely essential:

Same as Anchor Tenants are absolutely essential to every successful Major Regional Mall – NO EXCEPTIONS – NO DIFFERENCE.

And such Anchor Tenants, online & offline, get numerous added benefits for participating – such as:

a.      A low, to no cost prime location in the Consortium Network’s Online “Mall”.

b.      Net-Net 30 to 45 Minute (1-HOUR) FREE Fulfillment and Delivery 24 / 7 / 365 ON EVERY ORDER

At no cost to you as a Major Anchor Tenant

c.       Increased In-Store sales from Cross-Marketing with the other participating local area retailers (similar to any Regional Mall).

d.      Significant ROYALTIES as the Major Anchor Tenant from the added sales of the participating local area retailers

who ALSO have Amazon as their main competitor with no other effective method of competing.

e.      BONUS:  This Patented V-Commerce Network Is 100% Turnkey;
You and Your Staff Do Absolutely NOTHING Extra – EVER.

4.      A “Network Operating Partner” with our 35+ years of experience is needed to support items 1, 2 and 3 above, knowing exactly what to do and more importantly, what NOT to do.

a)      Operating liabilities such as third party product liabilities, traffic delivery accident liabilities and staffing liabilities, etc., are all the responsibility of the Network Operating Partner (similar to any Major Regional Mall and/or FedEx, UPS and USPS).


As you haven’t yet tried V-Commerce, possibly you still don’t believe the above is possible, or even necessary,

Same as you originally didn’t think Amazon and E-Commerce were possible, let alone necessary to most Consumers 15 years ago,

                        And more today than ever before.

And now comes the Amazon 30 Minute Fulfillment “OctoCopter” – Impossible You Say ???

Well Maybe for Domino’s Pizza.

Of course, you could simply continue giving your 30 – 45 minute orders to eBay or Google who are trying hard to copy our Network,

But without Anchor Tenant benefits equivalent, or even close to the above (one of The 4 Pillars to V-Commerce success),

Your order level will be less than optimal, with far more in-store assembly work, and less profitability in-store and virtually no Third Party Royalties (the biggest factor of all).

“Cyber Monday sales surged, sending online shopping toward a single-day record siphoning consumers from brick-and-mortar stores

The results deliver another blow to physical stores, which just suffered the first spending decline on a Black Friday weekend since 2009.

Web sales this holiday season are projected to climb as much as 15 percent to $82 billion, more than three times faster than total retail growth of 3.9 percent to $602.1 billion”

HOWEVER;  To get your share of the $4 Trillion Online Market J. P. Morgan recently identified (Chart 2),

You need to step out of Amazon’s Fairy Tale into the online reality of V-Commerce starting with Charts 1 and 2

The sooner the better.

BUT WAIT – What Do We Suddenly See When We Look More Carefully ?

Jeff just made a fatal error, as he was eventually bound to do:

Jeff Just Admitted His Achilles’ Heel – 30 Minute Fulfillment Terrifies Him,

Which is why he now is abandoning his Same-Day Red-Herring and touting 30 minute fulfillment – which he can’t yet offer.

Regardless, he is now professing he is way ahead on his 30 Minute Fulfillment.

When The Truth Is: 

Jeff is light years behind on what “most” (but not all) retailers now know is the future of retail – 30 Minute Rapid Fulfillment.

But for those few remaining Doubting Thomases, Jeff’s “OctoCopter” just confirmed our above statements, once and for all.

YES – drones are a great idea – but realistically not any time soon – and further away for large bulky orders (where the real profits are).

But, for sure 30 Minute Fulfillment Drones are coming,

And for sure they are less expensive (well maybe) and more reliable (well maybe not).

But for absolutely sure it’s safe to say V-Commerce is here today, and has a clear 5 to 15 year window before our enhanced version of the drone (or any other “OctoCopter” or Beam-Me-Up-Scotty version) realistically appears.

Jeff is a really bright guy and knows this all too well, including all the pros & cons,

But Jeff had no other choice,

He had to announce his claim to 30 minute fulfillment while he still had the credibility to do so.

Your Chance To Capitalize . . . But The Reality Is:

Jeff needs more time to get his 30 Minute Fulfillment Prime Air Drone into long term profitable operating realities.

And the Bricks & Mortar retailers are probably going to give him the time he needs – before competing in the 30 Minute area.

Thus missing:

(1)   The largest new $4 Trillion World Retail Market of all time, ($2 Trillion U.S.) – Chart 2,

(2)   Their stockholders’ largest market cap gain of all time,

(3)   And their new online customers’ demands.

(4)   Probably the last real chance to offset Amazon.

All in the name of:

(1)   Waiting for other Bricks & Mortar retailers to go first,

(2)   Doing everything “in-house” regardless of the realities,

(3)   Doing nothing “risky” regardless of the higher risks of actually doing nothing,

(4)   Only dealing with Fortune 500 Companies, instead of with accomplished, financially vested, entrepreneurs (Charts 3 and 4).

No wonder Jeff’s deceptions are so successful.

But his competitors (and yours) eBay and Google are not being so “generous”,

Because they grew up in this new online retail generation,

Same as Jeff did, not caring about conventional Bricks & Mortar retailing guidelines.

EBay & Google understand this new generation Consumer and their demand for the Highest Convenience, Widest Choice & Best Price.

And are determined to prevent Jeff from dominating V-Commerce as he now does E-Commerce.

However, while eBay & Google are far closer to 30 Minute Fulfillment success than Jeff is with his “OctoCopter” (and who knows what else),

They are light years away from winning the $4 Trillion World V-Commerce Market without The 4 V-Commerce Pillars.

So you can just imagine;

Jeff is working at warp speed to offset this threat to his goal to dominate the $4 Trillion V-Commerce Worldwide Retail Market.

Someone will win this huge V-Commerce market J. P. Morgan detailed a few months ago,

That we have been detailing for major retailers for the last 7 years – Charts 1 and 2,

We have the Keys To The Giant’s Castle,

But we have always realistically known we can’t do it alone,

AND We Certainly Tried,

But it was bigger than we were, and is even bigger today.

Therefore, Jeff is assured of winning . . . at your expense,

As long as you are willing to let Jeff play his already successful game uncontested.


Are you that rare retail exception that is willing to try something powerful, proven and new ?

IF SO, Call us;

We Can Get You There.

Starting with a simple inexpensive TEST City to conclusively prove all the above to you and all your Doubting Thomases.

Most Respectfully,
Gail Nichols



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