With Megaupload.com Shutdown, How Will It Affect Online Business?

Just when it seemed like it could not get any worse, it did.  The internet struggle continues on and a large blow took place this week.  Due to piracy and criminal actions, the government shut down file-sharing site Megaupload.com.  This comes shortly after the online protest of numerous of companies against the proposed Stop Online Piracy Act (SOPA) and the Protect Intellectual Property Act (PIPA).     

The Washington Post reported Megaupload.com was indicted for paying its' users to engage in uploading illegal movies and music, which they in turn would sell to their own customers.  The company was found generating $175 million for user fees and subscriptions, yet at the same time, stealing $500 million from the creators of the movies and music.

There are supporters and opposers alike, who each have legitimate reasons for their positions.  Opposers agree the freedom withing the internet is critical for its' progress and growth.  Piracy is one issue, however, when it involves the government having authority to shut your business website down at even the accusation of infringing on any copyrighted material is another.  If a small business's website is shut down, this can be damaging their reputation and sales.

Supporters of the SIPA and PIPA, such as the Motion Picture Association of America, feel piracy is robbing their industry.  The association's head Christopher Dodd had candid remarks about lawmaker's and their decision on the two acts due to be voted on later this month.  “Those who count on Hollywood for support need to understand this industry is watching very carefully," said the former Senator Dodd in a recent Fox News interview.  "Don’t ask me to write a check for you when you think your job is at risk and then don’t pay attention to me when my job is at risk.”  

After the alarming shutdown on Thursday, many wonder how this is going to affect online business.  Business file-sharing and websites are so key to the way we do business today.  It's as essential as having a solid scheduled delivery service for the very products that are sold through your website.  Courier Services like A-1 Express can help companies that face any online challenges and deliver every time. 


References:  1.20.12, www.washingtonpost.com, Cecilia Kang, Megaupload shutdown raises new Internet-sharing fears

What Went Right And Wrong During Holiday Sales

The holiday sales season is coming to a close and shoppers are doing the same with their wallets as well.  Some retailers had their share of challenges.  Others had success stories.  It went right for some and for others, it just went wrong.

"To sum up the whole season, I would say extremely focused on bargains, that's where the consumer's mindset is, and the retailers generally, overall, delivered pretty compelling bargains, they gave the consumer a reason to shop," said B. Riley & Co senior analyst Jeff Van Sinderen from a recent Yahoo news report.  It went right for the retail market as a whole, rising 3.8% higher than sales of 2010.  Macy's came into the holiday season opening at midnight on Black Friday and didn't look back, surpassing rival JC Penney and others.  They allowed managers to make decisions regarding what item discounts would fit their specific clientele the most.

Wal-Mart made the right strategic move to bring back their popular layaway in October, which helped them edge over in layaway sales against competitors Kmart and Target.  Online sales had their greatest year ever, with an increase of 16%, hit almost $3 billion the week before Christmas.  This was mostly due to purchasing convenience via smartphone and ipad shopping.  The numbers show consumers are becoming more comfortable shopping online.

This holiday season went wrong for Sears and Kmart, resulting in the decision to close over 100 stores due to fourth quarter sales plummets of 5.2%.  Fedex and UPS received the wrong type of publicity with drivers being caught on tape flinging holiday packages.  It went wrong with Best Buy this year, having to apologize and cancel customer orders close to Christmas Day because they could would not make the deliveries on time.  Same-Day Courierslike A-1 Express service nationwide and can help with deliveries in cases like Best Buy.  Experts do agree, in spite of it all, this year was a successful holiday sales season overall. 

References:  12.28.11, Yahoo News, Jessica Wohl and Phil Wahba-Reuters:  From Macy's to Sears, tales of holiday highs, lows

Google Talks To Retailers About One-Day Deliveries, Will Use Couriers

Google has decided to not allow the current online retail leader Amazon to continue to dominate the market, as it has in recent years.  Google has a business strategy of its' own that could prove to not make Amazon's coming year so easy.

 

Google has begun talks with major retailers and shippers about a service that provides one-day deliveries of products ordered online, according to a recent report in the Wall Street Journal.  The main reason the search engine giant has ventured into order fulfillment is solely due to Amazon and its' surge of their one-to-two day "Prime" delivery service.  Online retailer delivery options currently can not compete by far.

 

This has resulted in an increase of customers bypassing Google and going directly to Amazon to conduct their online shopping. Many retailers depend on search engine optimization via Google for online activity support.  Google has already spoken to a few retailers, such as Macy's and OfficeMax.  The new one-day or next-day delivery service will involve a quick-service option on retailer's website at checkout.  It also will involve informing shoppers via a product search feature on retailers that offer it and stock availability. 

 

The best option to get Google's strategy implemented quickly at low cost is via courier.  In the same report, in fact, Google will plan to involve delivery companies, such as UPS and same-day courier companies.  A-1 Express is a nationwide courier with a solid track record that can help large companies like Google deliver their online shipments.

Black Friday Results-Online Sales Up 24%

Black Friday sales online grew an astonishing 24% from last year, reported the Wall Street Journal.  The data was received from IBM, which tracked 500 retailer's websites and gathered real-time sales data on the big sales day.   E-commerce has been a huge investment made by department stores, aware of the holiday season, and the online sales numbers show it paid off.  Their sales grew to 59% this year as well.

The success in sales online on Black Friday was not alone.  Store sales rose almost 7% this year.  ShopperTrak, the world's largest provider of retailing foot traffic, stated store sales increased to $11.4 billion, which is $1 billion more than 2010.  Interestingly enough, purchases via mobile devices accounted for 9.8% of the online sales, far surpassing the much lower 3.2% of last year.  Consumers used their mobile devices to not only shop, but to perform price comparisons.  Devices like the Apple ipad and iphone accounted for 10% of online traffic.

 

Black Friday is generally held as the beginning of the holiday shopping season and so far it's off to a great start.  The question many retailers are asking is will the strong momentum carry throughout the entire holiday season.  Companies can keep their online sales going if they can find a way to keep relatively good pricing.  Using a courier delivery service is a cost-effective delivery system that can meet online demand.  Couriers like A-1 Express have a national footprint, enabling them to assist fulfillment centers anywhere in the country.  They can provide a logistical solution to help companies to continue to do well online this holiday season.

Online Shopping Big On Black Friday, Will Companies Deliver

Forrester Research estimates U.S. online holiday sales will increase 15 percent this year to nearly $60 billion. This is a greater figure from the $51 billion last year.  Their study shows that the increase is due to consumer-use of tablet computers and online holiday deals that have increased as well.  Companies are competing for this year's consumers, seeking like fish, to have some big catches this season.

 

Shoppers are going on online this year not only for the deals, but for several other reasons.  The economy and job market has effected where consumers will spend their money.  Some shoppers will spend the extra money they have on a gift, then on traveling.  Gas prices are steadily high and online shopping is the perfect fit.  Forrester's report also shows that 58% of Americans are more price-conscious than in 2010. 

 

For companies that are going to maximize online sales this Black Friday, a good delivery system is the way to go.  A system involving a courier can prove to be cost-effective to help compete online with discounted shipping.  Having a good product is one thing, but having shoppers to come back on the next big Black Friday or other high-volume shopping event is another.  If a company can't effectively deliver to shoppers their product this year, they won't be coming back to complete their online shopping on the forthcoming Christmas or even next year.  Couriers like A-1 Express are able to meet the fast-pace demand of online shoppers, especially to meet their delivery expectations.