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Amazon has understood where its customers should place all the gifts they buy from the online retail giant during the holiday season: under a Christmas tree grown in Michigan.
The company began shipping real full-size Christmas trees for the first time this week, some of which are from Michigan farms, said Amazon spokeswoman Saige Kolpack.
This makes the e-commerce giant the newest retailer in the $ 27 million Christmas tree wholesale business. Michigan is the third largest producer of Christmas trees behind Oregon and North Carolina.
According to the National Christmas Tree Association, only 1% to 2% of the 27 million real Christmas trees purchased last year were purchased online. But Amazon has always disrupted the way people buy goods. Those in the industry, however, remain skeptical.
"It's just another way of bringing real trees to people," said Amy Start, executive director of the Michigan Christmas Tree Association. "I think it might be a more popular choice for people who live in a city and may not have a car, so it will affect the industry a lot. "
Dutchman Tree Farms in Manton, one of Michigan's largest wholesalers, is not worried, said Chris Maciborski, Dutchman's partner.
The 8,000-acre farm in several central Michigan counties has been providing fresh trees for eight years. During the high season, 130 tree trucks are shipped mainly to the eastern half of the United States. Until now, it's sold to half a million this year.
"Whenever a real tree is sold, there is no harm," he said. "… The real attraction of choosing a tree is to go to see the tree, to feel it, to share the experience of choosing one's own tree. To be able to buy a tree and to having it delivered is a benefit to the customer, can not be bad. "
Ana Serafin Smith, senior director of communications at the National Retail Federation, said that Amazon's movement and success in the retail sector reflected the changing state of affairs. consumers' minds.
"Most consumers want as transparent a way as possible to shop," she said. "It is not much different to have food delivered, all of which is motivated by the convenience factor – Amazon would never have made that decision if there was no market." for that, and it is so. "
Last year, the average retail price of Christmas trees was around $ 75, according to the National Christmas Tree Association.
Hallmark spokesman Andy DiOrio said the company was not able to provide Michigan producers' names for the Detroit News program because of confidentiality agreements.
Amazon's packaging includes a tree stand, maintenance instructions, a tree preservative and a biodegradable bag to be removed. It takes one to two days to process orders and two to five days to ship. Delivery is not available in Hawaii and Puerto Rico.
Amazon sold trees less than 3 feet last year, and other traders used its market to sell larger ones. Shorter trees, wreaths and garlands are also available this year.
Michigan wholesalers said the new venture was a good opportunity for the trade in live Christmas trees, as the popularity of artificial trees has increased. According to the Michigan Christmas Tree Association, Michigan will provide about 2 million trees to the country this year. In 2017, the industry received $ 27 million on 27,000 acres of commercial land and $ 1.3 million more in sales of wreaths, cut branches, garlands and other greens.
Retailers, however, have said that Amazon's delivery could affect their business.
"I do not know if it will affect my retail business," said Fred Stempky, a second-generation farmer with a 100-acre nursery and a retail store in Livonia. "It has been seen over the years, I am shocked that they do it.I can not believe that they can have such a dramatic impact.It is just a little too early to find out. "
Stempsky said that competing with low prices at retailers such as Costco, Home Depot and Lowe's may already be a challenge. It is diversifying by selling nine species of trees and the "monsters", trees up to 16 feet tall. These cost up to $ 150, although the majority of its trees sell for between $ 40 and $ 60.
The good news, he said, is that until now, this year has been one of the best years of wholesale farming.
"I have never received as many calls out of the country as last year," he said. "I've had a lot of requests for information on trees from retailers located in states, and I'm not even a big producer."
Stempsky said that a severe drought in the Carolinas nearly a decade ago is probably one of the main reasons for this added interest.
Start also said that this year's supply was limited, as slow plantings during the Great Recession catch up with the market. On average, according to the National Christmas Association, it takes seven years for trees to reach 7 feet, although some reach 15.
"Many people came out of agriculture or did not plant as much," Start said. "I would not say that there is a shortage, but if you are in Arizona and you wait until the last minute, you may not be able to find what you want."
Mary Hauk, owner of Mary's Farm Market in Canton Township, has more than 150 trees this year. She also struggled to find vegetables to make crowns and blankets.
"A lot of trees are coming out west and south, and Michigan vendors are short-circuiting," she said. "You run out of trees unless you have ordered this summer.Trees are rare and rare.This is hectic."
Hauk said its regular supplier had shipped eight semifinals to a state it had not served for years, citing demand for fires in the west and hurricanes in the Carolinas.
Hauk trees start at $ 60 and go up to a few hundred for 14-foot trees. Since she started selling last week, business has been slow, she said, although trees over 12 feet have disappeared.
Mary's Farm Market delivers and sets up large trees locally for a fee. She said that she thought that Amazon's prices were high.
"It can have an effect," said Hauk. "This could work for busy people who usually use this and only that (website)." For most of our customers, it's a whole family affair.Many people like to do that. "
Kim Lucas, vice president of Lucas Nursery & Landscaping in upper suburbs and Plymouth Township, said the Amazon service would erase memories of selecting a Christmas tree.
"How will people see what their tree looks like?" Lucas said. "Amazon is a good company, but it's a cool product, maybe Gen Y will use it, but people of my age, like in their fifties, I do not think that's a good thing." they would do it, I do not think it will fly. "
Lucas' two sites sell 1,200 trees grown on his 127-hectare farm in Kalkaska, and for more than a decade, Santa has visited on Ford Road by helicopter. This year's visit is scheduled for 11 am on December 1st.
"We have loyal customers because we cut ours," Lucas said. "People know it, so they always come back, we've seen kids grow up and they always come every year."
These experiences, said Tony Stefani, second-generation owner of Hillside Christmas Tree Farm in Manchester, exceed all expectations. On average, the cut-and-sell farm sells trees for $ 45.
"Amazon is a big win in the real tree industry," he said. "But we sell souvenirs and traditions, doing an experiment rather than selling a tree – it's not just business and money, it's families coming in and kids smiling, and that's all. is a good feeling. "
Freelance writer John Russell contributed.
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