Welcome to Five at Five, your late look at the day’s payments and conference news. Today’s coverage includes a look at why some sellers dislike a new Amazon payment tool, and a look at the high prices of incorrect commissions. A grocery startup has raised big cash, a big retail chain gets creative with delivery and a new report ties worker retention to procurement.
With the new service, companies get a credit for selling their merchandise on Amazon accounts, but buyers don’t have to actually make a payment when they hit the Buy button. Instead, they’re invoiced and have the option to have an extended payment due date.
A business with $100 million in revenues can lose millions if even 1 percent of its commission payments are higher than they should be.
Compared to Amazon, Boxed offers fewer products, and items in bulk sizes. As a result, the company uses less space and manpower in filling more orders. Boxed also boasts an average customer order of $100 and average order size of 10 items.
With the service, customers order products through Target’s app and drive to the store. When they arrive, employees deliver the goods to customers’ cars. Orders are usually ready within an hour after customers place them.
The Hackett Group explored how “world-class” procurement players — organizations that have implemented a range of digital tools within the procurement function — experience an array of benefits compared to the average firm.