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Best Buy wants to get you goods online - fast

4/7/2016

Best Buy Co. Inc. is expanding a test of same-day delivery service from San Francisco to 13 major metro markets across the U.S.



The electronics chain started the pilot in San Francisco last fall and expanded it to New York early in 2016. It has now added Atlanta, Boston, Chicago, Dallas, Houston, Las Vegas, Los Angeles, Miami, Philadelphia, Seattle and Washington, D.C.



Best Buy is partnering with third-party same-day delivery platform Deliv for this effort. Deliv drivers pick up orders and deliver them directly to the retailer’s customers. Thousands of products are available for same-day delivery, which can be ordered using the “Expedited Shipping” option on BestBuy.com.



Prices vary, with an average cost of $10 to $20 per order. However, same-day delivery for printer ink is currently free. Orders must be placed on BestBuy.com by 3 p.m. local time and will be delivered by 9 p.m. that evening. Deliv does not provide the service on Sundays or for items weighing more than 50 pounds.



Best Buy will fulfill same-day delivery orders from stores, rather than a warehouse, to expedite shipments. The company says it has more than 165 stores in the Deliv markets it is now offering same-day delivery and that 70% of Americans live within 15 minutes of a Best Buy store.



Presumably Best Buy is making this move to combat two-day and same-day delivery of electronic goods offered by the Amazon Prime and Amazon Prime Now services. While Best Buy does not charge any annual membership fee for same-day delivery, its per-order charge means the cost would meet or exceed that of a $99 Prime membership within five to 10 orders.



Considering that most consumers order electronic items far less often than a staple such as groceries, Best Buy may be able to effectively compete with Amazon on same-day delivery. The retailer is also wise to make what may be the most frequently purchased consumer electronics item, printer ink, available for free delivery through the service.


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