{"id":1172,"date":"2014-08-24T16:58:19","date_gmt":"2014-08-24T23:58:19","guid":{"rendered":"http:\/\/droneanalyst.com\/?p=1172"},"modified":"2014-10-03T08:28:02","modified_gmt":"2014-10-03T15:28:02","slug":"drone-delivery-how-much","status":"publish","type":"post","link":"https:\/\/droneanalyst.com\/2014\/08\/24\/drone-delivery-how-much\/'","title":{"rendered":"Drone Delivery: How much would you pay?"},"content":{"rendered":"<p>I love the look of the Tesla Model S, but I\u2019d never get one. Somehow, the opportunity to pay $100K to drive only 300 miles before spending 4 to 9 hours recharging does not appeal to me. I also love the idea of Amazon\u2019s drone delivery initiative\u00a0<a href=\"http:\/\/www.amazon.com\/b?node=8037720011\" target=\"_blank\">Prime Air<\/a>.\u00a0 But, like the Tesla, the opportunity to pay a lot of money for drone delivery of the latest camera just doesn\u2019t make sense.<\/p>\n<p>Amazon has successfully painted a picture of a future in which its drones push merchandise from its warehouses to nearby consumers in 30 minutes. But to qualify for Prime Air, the order must be less than five pounds, which, <a href=\"http:\/\/en.wikipedia.org\/wiki\/Amazon_Prime_Air\" target=\"_blank\">according to Bezos<\/a>, includes 86% of the packages Amazon currently sells. The order must also be small enough to fit in the cargo box that the craft will carry, and the delivery location must be within a 10-mile radius of a participating Amazon order fulfillment center.<\/p>\n<p>What is less than 5 lbs.?\u00a0 Here\u2019s some examples from some recent <a href=\"http:\/\/www.marketingprofs.com\/charts\/2013\/12195\/online-shopping-trends-most-popular-categories-top-purchase-drivers\" target=\"_blank\">online shopping trends research<\/a>:<\/p>\n<ul>\n<li>Consumer electronics<\/li>\n<li>Books<\/li>\n<li>Clothing<\/li>\n<\/ul>\n<p>Sure I get that instant gratification is clearly one element why people might use Prime Air and providing outstanding service is another; as is staying ahead of the curve with innovative delivery and order fulfillment. All highly significant points in their own right to meet Amazon\u2019s goal: \u201cto be Earth\u2019s most customer-centric company.\u201d But as <a href=\"http:\/\/robotenomics.com\/2014\/06\/17\/the-economics-of-amazons-delivery-drones\/\" target=\"_blank\">this article<\/a> says cost of transportation is another. In 2013 Amazon\u2019s incurred overall losses of $3.5 billion related to shipping costs. How long can that go on?<\/p>\n<p>The problem is that I think drone delivery is going to cost a lot &#8211; maybe not at first but eventually. If Amazon can charge $99 per year for Amazon Prime, which provides delivery within 48 hours of placing the order, how much can it (or others) charge for nearly instantaneous delivery via drone? How much would you pay?\u00a0 Would $500 per year be out of line?\u00a0 How about $1,000?\u00a0 What about an extra $100 (30% markup) to get your new GoPro delivered before you leave for the airport in an hour?<\/p>\n<p>I\u2019m curious what you would pay. So I\u2019m running a poll with three simple questions:<\/p>\n<ol>\n<li>What&#8217;s the maximum amount you would be willing to pay for a package delivered by drone?<\/li>\n<li>Which of ten items would you want delivered in 30 minutes?<\/li>\n<li>Under what circumstance would you need something so quickly that you\u2019d pay top dollar for it?<\/li>\n<\/ol>\n<p>To take the poll click this link: <a href=\"https:\/\/www.surveymonkey.com\/s\/drone-delivery\" target=\"_blank\">https:\/\/www.surveymonkey.com\/s\/drone-delivery<\/a><\/p>\n<p>I\u2019ll run this poll for a few weeks. \u00a0Check back here later and I\u2019ll post the results.<\/p>\n<p>As always, I\u2019m interested in hearing from you.\u00a0 If have something to say feel free to comment below or email me at <a href=\"mailto:colin@droneanalyst.com\" target=\"_blank\">colin@droneanalyst.com<\/a>.<\/p>\n<p>Image credit: Amazon<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I love the look of the Tesla Model S, but I\u2019d never get one. Somehow, the opportunity to pay $100K to drive only 300 miles before spending 4 to 9 hours recharging does not appeal to me. I also love the idea of Amazon\u2019s drone delivery initiative\u00a0Prime Air.\u00a0 But, like the Tesla, the opportunity to &#8230; <a title=\"Drone Delivery: How much would you pay?\" class=\"read-more\" href=\"https:\/\/droneanalyst.com\/2014\/08\/24\/drone-delivery-how-much\/&#039;\" aria-label=\"Read more about Drone Delivery: How much would you pay?\">Read more<\/a><\/p>\n","protected":false},"author":3,"featured_media":1176,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,40,29,7,23],"tags":[37,39,9,38],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Drone Delivery: How much would you pay? - Drone Analyst<\/title>\n<meta name=\"description\" content=\"Drone Industry insights and quantitative research reports.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/droneanalyst.com\/2014\/08\/24\/drone-delivery-how-much\/'\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Drone Delivery: How much would you pay? - Drone Analyst\" \/>\n<meta property=\"og:description\" content=\"Drone Industry insights and quantitative research reports.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/droneanalyst.com\/2014\/08\/24\/drone-delivery-how-much\/&#039;\" \/>\n<meta property=\"og:site_name\" content=\"Drone Analyst\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/droneanalyst\" \/>\n<meta property=\"article:published_time\" content=\"2014-08-24T23:58:19+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2014-10-03T15:28:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/droneanalyst.com\/wp-content\/uploads\/2014\/08\/prime-air_high-resolution01-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1393\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Colin Snow\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Colin Snow\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/droneanalyst.com\/2014\/08\/24\/drone-delivery-how-much\/'#article\",\"isPartOf\":{\"@id\":\"https:\/\/droneanalyst.com\/2014\/08\/24\/drone-delivery-how-much\/'\"},\"author\":{\"name\":\"Colin Snow\",\"@id\":\"https:\/\/droneanalyst.com\/#\/schema\/person\/cfaec0eaf7627b0c98cecd854c7744f7\"},\"headline\":\"Drone Delivery: How much would you pay?\",\"datePublished\":\"2014-08-24T23:58:19+00:00\",\"dateModified\":\"2014-10-03T15:28:02+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/droneanalyst.com\/2014\/08\/24\/drone-delivery-how-much\/'\"},\"wordCount\":473,\"commentCount\":7,\"publisher\":{\"@id\":\"https:\/\/droneanalyst.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/droneanalyst.com\/2014\/08\/24\/drone-delivery-how-much\/'#primaryimage\"},\"thumbnailUrl\":\"https:\/\/droneanalyst.com\/wp-content\/uploads\/2014\/08\/prime-air_high-resolution01-scaled.jpg\",\"keywords\":[\"amazon\",\"delivery\",\"Drones\",\"prime air\"],\"articleSection\":[\"Cool New Products\",\"Drone Delivery\",\"Drone Ecosystem\",\"Drone Industry Trends\",\"Research\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/droneanalyst.com\/2014\/08\/24\/drone-delivery-how-much\/'#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/droneanalyst.com\/2014\/08\/24\/drone-delivery-how-much\/'\",\"url\":\"https:\/\/droneanalyst.com\/2014\/08\/24\/drone-delivery-how-much\/'\",\"name\":\"Drone Delivery: How much would you pay? 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