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    Thursday
    Sep292016

    Retailers Getting Faster At Delivering Online Items

    If you're moving as fast as Amazon is, then you would understand that today's online retail is emerging to become a staple business within e-commerce. Online retail is expected to reach $500 billion by 2018, and Amazon is leading way, capturing 33% of sales online a year ago. One of the e-retail giant's core value-added services is its' ability to optimally perform two-day delivery, as well as Same-Day Delivery. This has given Amazon a tremendous advantage over other retailers, yet a new report shows that they are beginning to fight back and speed up their delivery times.

    Internet Retailer recently reported how several top e-retailers in the US have begun to deliver their online items. It's new “Click, Ship & Return: Fulfillment Report” showed that retailers were making delivery time improvements within the last three years. The study was based on 30 retailers, tracking KPI's such as shipping speed, order processing times and returns. The report found that the average delivery time was four days.

    The four-day time frames is a big difference from what it use to be. Based on a Slice Intelligence tracking of 238 online retailers, in January 2014 the average delivery time was 8.3 days. By April 2016, that average has decreased to 5.1 days. Therefore, there was a vast improvement within a two-year span. Consumers have become more comfortable with shopping online, coupled with the convenience of technology, the demand for faster delivery has increased. The retailer that can provide the same product, yet have the ability to get it into the hands of shoppers reliably faster, will be the one that gains a loyal customer.

    In comparison with Amazon, the e-retail holds an impressive average between one and two days to deliver. This is no surprise with the level of distribution and fulfillment center operation that Amazon has. Now, it even has the reach to provide two-hour delivery via Prime Now in major US cities. Earlier this year, Amazon's expanded its' free Same-Day Delivery program to a total 27 cities, including San Francisco Bay Area, New York, Philadelphia, Seattle, San Diego, Dallas-Fort Worth, Phoenix, Indianapolis, Baltimore, Washington DC, Chicago, Richmond, Atlanta, Orlando, and more. Soon Amazon will be nationwide.

    Other retailers are beginning to adopt Amazon's strategy. E-commerce analytic company, Slice Intelligence, performed a study and found one way retailers are successfully delivering quicker is by building more distribution centers to fulfill online orders, and these facilities are storing merchandise close to many heavily populated areas. This is resulting in faster turnaround delivery times. They are also utilizing their brick-and-mortar stores to pick up and delivery online orders. A company like Wal-Mart for example, has thousands of locations nationwide, which would enable it to easily fulfill online orders.

    Instead of perform the deliveries themselves, many retailers partner with a Same-Day Courier like A-1 Express to develop an optimal same-day delivery solution throughout the US. The Phoenix Courier has a national footprint and the expertise to exceed any company's expectations. We understand courier same-day delivery, offering route deliveries, long-distance services, return delivery services, one-hour services, and more. A-1 Express can help get retailers' delivery time decreased, resulting in being able to truly compete with Amazon.

    Reference: 9.9.16, www.internetretailer.com, Kat Fay, Top e-retailers deliver the goods faster

    Tuesday
    Sep202016

    Tesco Seeks to Compete with AmazonFresh, Goes Same-Day Grocery Services

    It's not about which retailer will surpass Amazon, but who are the ones that can at least keep up with it. The US e-retail leader is not only having competitors dig deep to keep market share in the US, it is happening abroad as well. In the UK, supermarket giant Sainsbury just launched an initiative in July to offer same-day grocery delivery in 30 ares in England before year's end. Now, it appears store chain Tesco is right behind them with a same-day service of its' own to defend off Amazon Fresh from luring its' customer base away.

    The Daily Mail recently reported that Tesco will be rolling out a same day ‘click and collect’ service for groceries from 300 stores throughout the UK. With this many stores, Tesco should generate the volume it takes to make the service work. Scale is vital with any same-day service, as the volume will ultimately make it worth while. For all orders placed by 1pm, shoppers will be able to pick up from their local store after 4pm the same day. The cost of the service will be £2 for a two-hour collection slot from Monday to Thursday, and £3 for slots on Friday or Saturday. Another option regarding Tesco's click and collect is that customers can either choose a 4pm to 6pm, or 6pm to 8pm collection window slot for all six days.

    "We know time is valuable to our customers and they expect more convenience and choice than ever before in how, when and where they do their grocery shopping", Tesco said in the article. The retailer also said relative to service convenience, "Our same day grocery click-and-collect service is available at nearly 300 stores across the UK and means our customers can get their shopping at a time and location that is convenient for them." As shoppers have become more comfortable and secure with online purchasing, retailers now seek to position their stores so customers can buy right where they are. Whether they are at the coffee shop, or at home, they can utilize their mobile device to buy online and them pick it up from a retail store.

    In today's market, shoppers are also trending to use Same-Day Delivery to have their online items dropped off at their front door. This is what Amazon has established in the 27 markets in the US, including hometown Seattle, San Francisco, San Diego, Charlotte, New York, Philadelphia, Chicago, Atlanta, Richmond, Orlando, and many more. Wal-Mart, the world's largest retailer, has launched same-day grocery delivery in a few major US cities to begin with in the last recent months. It makes sense for any grocery store retailer to offer same-day delivery, as shoppers have a constant demand for food products and would enjoy not have to leave their home to get dinner.

    Tesco's competitor, Sainsbury, announced launching a same-day grocery delivery program that will span over 30 areas in England by Christmas of this year. When the grocery store chain use to only provide grocery next-day delivery as an option, now its' customers can get their products the same day. Same-day grocery delivery will be offered for orders placed online by noon, and will be dropped off by 6pm that day. Like Tesco, Sainsbury will have a pick-up option that will be ready to pick up from 4pm as well .

    As other companies are doing, Tesco is implementing this strategy to stay competitive with new Amazon Fresh, which offers same day delivery on 130,000 goods. It takes an established system to optimally delivery that many online items per day. A Same-Day Courier like A-1 Express can partner with any grocery store chain or e-based retailer that wants same-day delivery to become a staple service. from their operation. The Houston Courier has the national footprint and logistical expertise to develop a variety of same-day solutions for any company to grow their business and compete with Amazon.

    Reference: 8.24.16, www.dailymailcom, Sean Poulter, Tesco is to offer a same day ‘click and collect’ service for groceries as it moves to fight off threat from Amazon

    Tuesday
    Sep132016

    The Fragrance Shop Steps Up Online, Launches Same-Day Delivery Testing

    If you didn't think that Same-Day Delivery would break the barrier and move beyond being just a trend, big companies are proving the shipping option can be a staple within any industry. All types of businesses are engaging in fast delivery, including UK's The Fragrance Shop which has made the shift from just offering next-day delivery to same day.

    Essential Retail recently reported the popular fragrance retailer has announced the roll-out of it's new one-hour delivery service. It will also be adding next-day delivery to its line of online shipping options. Prior to the move, The Fragrance Shop only provided online customers a standard and a nominated day delivery, as well as weekend and a click & collect service options. Once it received positive results from its fast next-day and click & collect options, The Fragrance Shop initiated implementing its one-hour services.

    Fragrance Shop's head of eCommerce Mark Kelly discussed the new one-hour service and its' strategic decisions to meet online shopper demand there. He said, "Fragrances are typically purchased as a last minute gift, so speed and flexibility of delivery is important. We want to maximize on this by making it easier for customers to make these guilt-free, eleventh-hour purchases. We chose to implement Shutl based on the company's standing as a market leader in same day delivery and the fact we share the same ethos for superior customer service."

    As other retailers in the US have done, which is partnering with a Same-Day Courier like A-1 Express to for fast shipping options, The Fragrance shop is partnering with delivery company Shutl to pick up and delivery from its' 177 stores nationwide. Kelly added, "Shutl enables us to interact with our customers quickly, and in the manner of their choosing. This doesn't just give customers greater control over when they receive their purchases, but by keeping the delivery time short, they are less likely to change or cancel their order or contact customer services for delivery updates."

    The UK has been experienced other big name retailers launching same-day services, such as supermarket grocery store chain giant Sainsbury. The company launched same-day grocery delivery in July, with plans to expand the service in 30 more areas throughout the country. Testing will begin in three stores, and then implement same-day delivery in 30 areas in the country by Christmas. With the holiday season almost here, The Fragrance Shop is looking to create a client base during Thanksgiving and Christmas.

    As with other big name retailers, the Fragrance Shop too has the product shoppers want, yet they desire for their purchase to be brought to them. This is where A-1 Express can a Los Angeles Courier that performs delivery analysis and develops a same-day solution to meet consumer demand. If Amazon is is doing it, others retailers can do it also. The Fragrance Shop will now be able to compete within the delivery sector and get their products into their customers' hands fast.

    Reference: 8.10.16, www.essentialretail.com, Caroline Baldwin, The Fragrance Shop rolls out one-hour delivery

    Wednesday
    Sep072016

    Amazon Has Record 28% 2nd Quarter Growth, Same-Day Delivery Helps

    Some revenue growth happens for any company that is good, unless you are competing against Amazon. Your results are going to have to be more than mediocre in comparison to what the e-retailer is doing, putting others in a compelling position to make innovative adjusts like Same-Day Delivery to their e-commerce.

    The recent numbers show that Amazon is outpacing many retailers, as sales increased 28.1% in the second quarter this year in the US and 30.1% internationally. Amazon's Web Services cloud computing unit also went up by 58.2% increase, resulting in an overall revenue growth to 31%. More and more shoppers have become comfortable with online shopping, as well as the convenience demand that it meets. This demand is driving Amazon and other retailers to get online items into their customers' hands right where they are. Brick-and-mortar business still remains ahead e-commerce; however, online retail is expected to reach $500 billion by 2018. This equates to Amazon's aggressive ingenuity and it is creating results.

    In fact, the article by Internet Retailer mentioned the second quarter numbers were a record net income for Amazon. Its' met income reached $857 million, which is almost ten times the net income of only $92 million in the second quarter the year prior. The positive quarter makes it the fifth consecutive profitable term that Amazon has had. In the past, Amazon often reported quarterly losses due to heavy investments into new fulfillment centers, new device development, licensing movies and TV shows for its Prime Video service. Yet, there is an overturning of investment into steady revenue.

    Here are some additional stats from Amazon record-setting second quarter:

    • North American net sales of $17.674 billion, up 28.1% from $13.796 billion in the same period a year ago.
    • International net sales of $9.844 billion, an increase of 30.1% from $7.565 billion last year.
    • North America sales of books, music and other media of $2.928 billion, an increase of 11.8% over $2.620 billion in Q2 2015. North America sales of electronics and general merchandise increased 31.6% to $14.459 billion from $10.987 billion.
    • Net income of $857 million, a sharp increase from $92 million a year earlier.

    From Amazon, it appears we haven't seen nothing yet. “We're opening 18 fulfillment centers this quarter,” said Brian T. Olsavsky, Amazon's senior vice president and chief financial officer about future implementations, according to a transcript via SeekingAlpha. “To put that in perspective, we launched six in Q3 of last year. This will bring us up to 21 net FCs for the year by the end of Q3 and that compares with 10 fulfillment centers for the first three quarters of last year on a net basis." Olsavsky went on to say, “So, why are we expanding so much? If you remember back to Q4 and the capacity constraints we had in Q4, primarily due to really strong FBA growth, we talked a lot in the Q4 call about the operational cost of that in Q4. Customers well taken care of, but we had additional fulfillment costs from being so tight on capacity.”

    Amazon is a fast moving train and same-day delivery is just one of the pieces playing a part in Prime sales growth. An example is implementing a fast shipping option for online shopping. Businesses are partnering with a Same-Day Courier like A-1 Express to offer customers on-demand services and deliver items right to their front door. The New York Courier has a national footprint and the ability to implement effective same-day delivery solutions within major US cities to attract today's online market.

    Reference: 7.28.16, www.internetretailer.com, Don Davis, Amazon reports 28% North American sales growth in Q2

    Wednesday
    Aug312016

    Same-Day Part Delivery for Toyota Begins

    When so many major companies in the retail industry are engaging in Same-Day Delivery, if you sell any type of product, it may not be a bad idea to do it too. The service thrives on volume, and if you are as robust as Toyota is, it makes sense to initiate a delivery program that can feed dealership parts the same day.

    Auto News reported that this is the direction Toyota and Lexus have taken, offering same-day parts availability to their dealerships. As dealerships are able to get their parts faster, daily operational services by technicians will be completed faster. This ultimately produces more happy customers with service, which is an area which dealerships find to be challenging to consistently provide. The service department seems to get the brunt of negative surveys, especially when a customer's vehicle wasn't repaired in a timely manner due to a part not arriving. Now, same-day part deliveries will streamline auto repairs, as well as routing part inventory from one dealership to another.

    The new same-day parts delivery will create positive changes. Parts manager Luciano Restrepo of Keyes Lexus in Los Angeles, which is already doing same day, mentioned in the article that there's been nothing but success so far. Restrepo stated, "That is the best thing Lexus ever did for us -- the fact that we can get a transmission and a vehicle in and out in one day." He went on to say, "I utilize the service every single day." Toyota has made the correlation between faster parts delivery and faster service, equals better service.

    Same-day delivery is going to be something new for Toyota, being that deliveries use to only be made next-day. Yet, faster part service can lower or even eliminate loaner car expenses. Some dealerships that offer loaner cars as a value-added service, may have specific loaner vehicles, but when those are being used, they have to use their used or new car inventory. This results in additional wear-and-tear on them. Faster parts means less loan time. Also, the amount of discounts extended to unhappy customers with delayed vehicle repairs are drastically lowered. In every industry, demand is increasing for higher service levels and companies are seeking to distance themselves from competition with same-day delivery.

    This is why same-day delivery is expected to reach $987 million by 2019. One of the most recent newcomers to provide the service is Wal-Mart. This past June, the world's largest retailer announced the launching of several same-day grocery delivery pilot program in Denver, as well as in another unidentified market in July. In the US alone, Wal-Mart has over 3,400 Supercenters in the US, which positions the retailer to easily provide same-day services within any major US city. It won't take long for a service convenience like this for loyal Wal-Mart shoppers to catch on to it.

    Service has become a big factor in customer loyalty, making it very apparent why Wal-Mart, Amazon, and now auto manufacturers like Toyota, are going in this direction. Many companies turn to a Same-Day Courier like A-1 Express to develop a cost-effective same-day solution that makes sense for them. The Pittsburgh Courier has implemented route delivery services, part returns, long-distance services, and more, all within one day. With a national footprint, Toyota and other manufacturers can outsource to A-1 Express for part shipping throughout the US.

    Reference: 8.15.16, www.autonews.com, Jim Henry, Same-day service aims to give Toyota, Lexus stores competitive edge