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Amazon and Drone Delivery: The Pros and Cons

Technology is constantly changing, growing, and advancing. With these changes come a great deal of speculation about what the result of these changes will be. One of the most significant issues that is affecting one of the largest corporations in the country are whether or not drone delivery systems should be legal and whether they invade the rights of individuals.

Amazon seems to be developing a great deal of plans when it comes to its drone delivery system. The system itself is supposed to deliver your items faster, more carefully, and without the interference of human interaction, thus cutting down on human error.

While the system does have a number of benefits, those which will be discussed below, there has also been a great deal of backlash. The backlash against these drone delivery systems is not only harmful on Amazon’s progression, but also on the image of the brand itself.

The Advantages of Amazon’s Drone Delivery System

Amazon’s business model is pretty simple – delivery quality goods swiftly and at a low price.  The problem with this system is that Amazon is rapidly growing, thus increasing demand for its product. Higher demand has led Amazon to require a more efficient and effective delivery system.

To achieve these system, Amazon has been seriously considering establishing a drone delivery system. By delivering products by drone, Amazon will be able to further increase the influence and prevalence of its brand on the online retail market.

Those who order from Amazon and utilize drone delivery will receive their products within 30 minutes of purchase via a small drone device. To further highlight how effective the drone delivery system is on Amazon and its brand, below are a few of the main benefits of the system:

A Revolutionary Move

First and foremost, if Amazon is able to achieve its drone delivery system, then its brand will be recognized as a revolutionary in drone delivery. Currently, there are no other brands out there who have been able to institute the system. By being the first brand to undertake this task and to succeed at it, Amazon will be long-recognized as an innovator in its industry.

Speedy Delivery

Another advantage of Amazon’s delivery system that is bound to heighten its brand image and increase client satisfaction is the promise of speedy delivery. With delivery time standing at a low 30 minutes, more clients that need their items quickly are going to turn to Amazon for their retail needs. Furthermore, the speedy delivery system and the investment that Amazon will make on these drones are virtually very difficult to compete with, making Amazon one of the sole companies offering drone delivery.

Positive Environmental Impact

Most people may not think of this advantage, but the reality is that Amazon’s brand stands to gain big from the drone delivery system, especially because it will portray the company as an environmentally conscious brand. With drone delivery systems, fewer transportation carriers will be traveling on roads and polluting the atmosphere. Therefore, with this system, Amazon may attract individuals who prescribe to brands that perform in a manner that does not harm the environment.

The Disadvantages of a Drone Delivery System

While Amazon and the image of its brand certainly does stand to benefit from the drone delivery system due to having a positive environmental impact, creating a speedy delivery system, and revolutionizing the way that deliveries are made, there are also a number of significant and prevalent disadvantages with the system.

The disadvantages are not only societal in scope, but they also extend into the legal realm. Below are a few examples of the backlash Amazon is receiving for its drone delivery system idea. Backlash like this can certainly be managed, but even then, it isn’t the type of trouble that a brand would want to find itself in.

Trespass on Property

One major contention regarding Amazon’s drone delivery system is that it may be a form of trespass on private property when it flies over the airspace above a person’s property. In addition to this problem, if the drone somehow fails and falls on private property, the many people are arguing that the drone ceases to belong to Amazon, including the package that the drone is carrying. These concerns are a real issue for Amazon

Federal Aviation Administration

Another very real problem with Amazon’s drone system is that the Federal Aviation Administration has tacked on some strict and constraining rules on the delivery system. Under the FAA’s rules, the drones will not be able to fly over people and when the drone is in operation, there must be an on-the-ground observer monitoring the safety of the drone at all times.

These types of regulations pose a sever obstacle for Amazon because with these regulations, Amazon may be unable to institute the system. Having a on-the-ground monitor and preventing the drone from flying over people will be too costly for the brand, thus putting into detriment the system itself.

The Insurance Industry

Another field that the drone systems are going to affect is the insurance industry. One of the main purposes of the drone system, aside from meeting customer demand, is to reduce the cost of operation for many brands, including Amazon.

With the drone delivery system, these plans may be thwarted because regulators may require brands to have insurance policies on the drone system. The insurance policies that he brands will be required to institute will not be cheap, but very costly. With the high costs involved, the revolutionary move to turn drone delivery systems into a reality throughout the country may be in detriment.

If any resolution is to be had, is that insurance companies are going to need to reduce their costs for the policies and there would also need to be lower possible damages that can result from the drone system. Amazon would need to ensure that the system runs safely and with as few problems as possible.

Injuries

Finally, the drone system can lead to injuries to both Amazon and people who are subject to having drones flown over them. In terms of Amazon’s injuries, these may arise out of the pure liability that would arise out of losing a drone that someone shot down over his property and captured for himself.

Not only is the expensive drone equipment lost, but so is the item that stands to be delivered. This can cause millions of dollars in lost revenue per year. In addition, Amazon may also have a great deal of angry customers to deal with since customers prefer systems that guarantee delivery, not prevent it from occurring.

In terms of personal injuries, the drone system is not a perfect technology, and as such, problems can easily arise. If a drone were to harm an individual or to damage personal property, then Amazon will incur a range of hefty costs and perhaps even a number of lawsuits on behalf of those who have been injured.

Conclusion

There are many things that brands who are considering a drone system can take away from this scenario. First and most importantly, brand expansion is the key to success. Customers are constantly looking for the better brand that is going to offer them the quality products and service that they are looking for.

Amazon’s attempt at increasing the effectiveness of its brand and its desire to please customers has led it to attempt to institute a system that may be extreme beneficial. However, that being said, it is also important to note that what may be a good idea at first glance may also be an idea that needs to be thought out and thoroughly considered before being implemented. Amazon not only has a great deal to gain from the drone system, but it also has a lot to lose.

The loss that Amazon may take from the drone system is mainly financial and also in its fan base. To start, the financial repercussions of the drone system are mainly apparent through the systems inability to fully protect shipments and ensure that persons below the drone systems are safe.

If someone were to take legal action against Amazon from the harm caused by the drone, Amazon could financially suffer and the image of the brand could also take a hit. This type of disaster is something that any brand should be extremely cautious of.

At the heart of it, before implementing any strategy, brands needs to consider both the benefits and disadvantages of establishing the system. In this case, drone delivery can benefit Amazon’s brand a great deal, but it also can harm it if Amazon isn’t careful about how, where, and in what manner it operates the drones.

While the FAA regulations may be something that Amazon is fighting against, these regulations could save Amazon and its image as a trustworthy, safe, and excellent brand at the end of the day because they will prevent the type of chaos that every brand should steer clear of.

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About Sean Donahoe

Sean is one of the most recognized industry leaders in business and marketing. As a popular speaker, author, consultant he has helped over 50,000 students world wide find success in their businesses and has consulted with Fortune 500 companies and businesses of every size grow and thrive...

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