In an interview with Fool.com, Jerry Jao, CEO and co-founder of Retention Science said Amazon has differentiated itself with its shipping advantage. The online retail giant is an innovator, and more of a logistics company than an e-commerce plaform, wrote Jao in his interview.
Jao likes Amazon's approach but calls its advantage "sizable, but not completely disrupt-able," according to Fool.com. With the rumoured launch of Jet.com later this year, Amazon will have to gear up for competition. Jet.com will bring the Costco subscription model online. Jao in the interview says, large retailers such as Walmart can challenge Amazon's agile shipping model too.
While Amazon will face competition, Jet.com is a competition in theory and oher major retailers are yet to invest in shipping and logistics the way Amazon has, Fool.com says. Walmart and Target lack the investment that is needed to scale and improve their processes.
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