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    Thursday
    Aug252016

    UPS Revenue Increases, Will It Go Same-Day Delivery?

    When you see UPS investing into Same-Day Delivery, it shows that the service has moved beyond just being a trend. It has become a legitimate staple service that can swing sales toward your business. This is what UPS did at the beginning of this year. UPS conducted a study on same-day delivery and led a $28 million funding round for start-up Deliv. The carrier also became a minority stakeholder in Deliv and sat in on board meetings as well. It's clear that UPS is seeking innovative ways to increase sales.

    The Washington Post recently released an article detailing UPS’s second-quarter revenue results. Sales slightly improved within its' domestic and international package divisions. The report stated that the carrier's revenue increased to $14.63 billion, which is up from $14.1 billion. Analysts surveyed by Zacks Investment Research forecasted growth for the quarter to hit $14.6 billion in revenue. The US domestic package unit went up 4%, along with an average daily package volume up 2.5%.

    2nd quarter figures went up 1.1% in the international package division and 3.9% for daily export packages. Also, for the three months that ended June 30, UPS earned $1.27 billion. This equated to being higher in comparison to $1.23 billion for the same period last year. The increases may not have been what UPS would have anticipated, yet the numbers are positive, especially when you have FedEx and the US Postal Service to contend with.

    Along with FedEx and the U.S. Postal Service, now UPS may have to concern itself with Amazon. The e-retail leader has now leased 40 cargo planes from Boeing and Atlas Air for the purpose of creating an air cargo network. Amazon does state that it isn't planing to build its' own delivery service and is only looking to work closer with package-delivery companies like the UPS, USPS and FedEx.

    Amazon may not have an edge in carrier package delivery services, but it does with establishing same-day delivery. For Prime members, the same-day service is free. Amazon has same-day delivery operating in major US cities, such as San Diego, San Francisco, Seattle, Dallas, New York, Philadelphia, Chicago, Baltimore, Boston, Atlanta, Richmond, Orlando, and more. The e-retail giant has a total of 27 markets that offer same-day delivery and appears to have its' sights on providing it nationwide.

    A Same-Day Courier like A-1 Express can help UPS develop sound same-day logistic solutions throughout the US. The Philadelphia Courier takes the service areas, product volume and more into account in order to deliver at the right price. As a result, companies can experience gains in revenue and new customers due to trying their same-day delivery options.

    Reference: 7.29.16, www.washingtonpost.com, Associated Press, UPS 2Q revenue improves on strength in US, abroad

    Friday
    Aug192016

    More Online Retail Searches Likely Means More Same-Day Delivery

    Technology has affected has consumers shop online. It is no longer taking shoppers time at their home desktop to find good deals. They can easily be at the store register and find just the right discount to save money. This is just one benefit that technology has brought to customers and the latest online retail searches shows it.

    Internet Retailer recently reported that 56% of online retail searches are made via smartphone or tablet, according to a study from web measurement firm Hitwise, a division of Connexity Incorporated. The study included hundreds of thousands online search queries across 3.5 million smartphones and tablets between April 10th and May 7th of earlier this year. The searches were made by consumers based in the US, UK and Australia. The article mentioned that with Hitwise, Smartphones and tablets are considered to be mobile devices.

    Hitwise looked at the specific keywords that retail consumers used for their search. The study found that 82% of them used the words "24 hours" for their searches from mobile devices. Other top searches consisted of keywords like "where to buy...", which was 84%, "near me" at 79% and "hours" was used at 79% mobile. The results show that speed and convenience are huge factors regarding online retail. It makes sense, especially as now more retailers seek to offer value-added online services like Same-Day Delivery to attract shoppers to their sites.

    The study confirmed how mobile devices are being used more to find discounts and deals. Of all the retail searches that mentioned the words “coupon,” “return policy” and “price match”, 77% of them were made from mobile devices. 73% of searches with the words “sale” and 68% of “discount” searches are made on a mobile device also. Yet, the study showed that 59% of searches that include “promo code” are made on a desktop. Therefore, for in depth searches for promo codes that may require time, the desktop still slightly ahead of smartphones and tablets.

    Hitwise senior research and marketing analyst John Fetto talked about how online retail searches is aiding shoppers, even at checkout. He stated “Especially for traditional brick-and-mortar establishments, the smartphone has become an indispensable shopping tool providing consumers—sometimes within feet of a register—with information or offers that could seal or jeopardize a transaction". No one expected technology to impact online retail as it has, and it is dictating what retailers are doing to capture immediate sales.

    The increase in online retail searches leads to as fast purchasing online, as well as fast delivery of those items. Many retailers and companies are partnering with a Same-Day Courier like A-1 Express meet the service demand that shoppers want. The Charlotte Courier has a national footprint and the courier expertise to develop the delivery solutions retailers need, especially as the holiday season approaches. When a retailer can offer same-day delivery and store pick up services, they can capture the market segment of the shoppers that want the deal they found delivered to their front door.

    Reference: 7.26.16, www.internetretailer.com, April Berthene, 56% of online retail searches take place on mobile devices

    Thursday
    Aug112016

    London's Sainsbury Goes Same-Day Grocery Delivery to Compete With Amazon

    It takes more than online sales to compete with Amazon and most retailers know it. Grocery store chain leader Sainsbury in the UK has concluded as well that a Same-Day Delivery option is key to meeting the service demand by today's shoppers. Amazon is doing it. Sainbury announces it is going to do it too.

    Sainbury is rolling out its' own model of same-day grocery delivery service in over 30 areas in England by Christmas of this year. The grocery retailer currently does next-day delivery on all orders placed before 11pm, as long as a delivery slot is available. The new grocery service will provide grocery delivery to shoppers that order online by noon, which will be received by 6pm that day. To also meet its' customer service options, Sainsbury will have a pick-up option that will be ready to pick up from 4pm. Customers will have a variety of ways to get their online products into their hands.

    The article discussed how Sainsbury will be charging up to £7 for its same-day grocery delivery services. Like Amazon, Sainsbury’s Delivery Pass membership costs between £30 and £60 a year. Shoppers can also pay no delivery fee for all orders over £40. Amazon had found the formula to thriving online by creating a loyal customer customer base via Prime, and Sainsbury seeks to do the same.

    Sainsbury isn't the only grocery store retailers that is gearing up for the upcoming holiday season. The world's largest retailer Wal-Mart launched its' pilot program of same-day grocery deliveries in Denver, as well as another unidentified market last month. Wal-Mart partnered with Uber and Lyft ride-hailing services to perform the actual pick up and deliveries. If all goes well, Wal-Mart will probably expand the service. As the biggest shopping season approaches, it's critical to have same-day grocery delivery to have been proven, especially as retailers like Wal-Mart have same-day delivery of non-grocery items in their sights.

    Wal-Mart also has made similar implementations with Sainsbury, as it has begun to offer its' new ShippingPass membership program. Wal-Mart Stores Inc. launched ShippingPass to keep pace with Amazon's Prime services. ShippingPass provides free shipping with two-day delivery for all members, which pay only $49 per year for memberships, in comparison to Amazon's for $99. Shoppers on WalMart.com will have access to online items such as electronics, clothing, health products, and more. The retailer has over 3,400 Supercenters throughout the US and has all the pieces necessary to easily perform last-mile deliveries.

    Like Sainsbury, Wal-Mart plans to offer same-day delivery as well. As Amazon continues to expand it's own same-day delivery program, more and more retailers are implementing the service. A Same-Day Courier like A-1 Express can partner with retailers to help establish the delivery component of their web presence. The Phoenix Courier has hundreds of companies that it has provided optimal same-day delivery solutions for nationwide. Shoppers have become comfortable with online shopping and the retailer that can utilize same-day delivery to get products conveniently into their hands, will be the ones that compete against Amazon.

    Reference: 7.21.16, www.dailymail.co.uk, Sean Poultner, Sainsbury's takes on Amazon with same-day delivery pledge

    Wednesday
    Jul202016

    Amazon's Prime Day Sales Up, Shoppers Probably Used Same-Day Delivery

    It is going to take a lot for retailers to outpace Amazon online. It's most recent initiative shows why the web-based e-retailer is spearheading the strategies that make today's e-commerce work.

    Amazon's Prime Day was held earlier this week and the results from the big online sales campaign were successful. Internet Retailer discussed how Amazon captured online purchases from roughly 46 million Americans on Tuesday. Per Forrest Research, there are an estimated 244 million online shoppers in the US. Based on the numbers Internet Retailer estimated that Amazon had a $50 per average order value on Prime Day, which amounted to $2.32 billion in online transactions. This is a staggering number in comparison with other big name retailers that attempted to compete and marketed online sales of their own, like Wal-Mart, Kohl's and Target

    Amazon Prime Day was the retailers biggest sales day in history. The article mentioned sales worldwide went up 60% and up 50% in the US. This affirms that more and more shoppers have become comfortable with making online purchases. Besides the benefit of online prices are usually lower than in stores, it keeps money in your wallet by eliminating any travel costs. With Same-Day Delivery, Amazon, Google, and others enable customers to get their online items just as fast as if they went to pick it up themselves.

    Amazon is fully vested into the trendy service. In fact, its same-day delivery service is free for Prime members, which they probably utilized as a shipping option a few days ago. Earlier this year, Amazon expanded its' free Prime Now into more major US cities, bringing its' total service areas to 27, including San Francisco, San Diego, New York, Philadelphia, Chicago, Atlanta, Richmond, Orlando, and many more. Last-mile deliveries aids retailers to move product via web stores, creating the ease of buying online that shoppers like, especially when they have a peace of mind regarding the reliability of your service like Amazon has created.

    For Prime Day, consumers were fairly pleased with what Amazon, as 52.8% of consumers rated their shopping experience as excellent. Some 38.9% described it as good and 8.3% rated it fair. None of the shoppers surveyed rated their experience poor, which speaks volumes to the satisfaction that Amazon provides. Out of an Internet Retailer survey of 191 online shopper the following day of Prime Day, 19.4% of the respondents stated that they made a purchase from Amazon. Its' conversion rate for those that visited Amazon.com was 46%, in comparison to an industry rate of 3%.

    As Amazon continues to dominant online, more retailers are beginning to re-position and shift the way they do business online. If membership programs and same-day delivery are successful for Amazon, maybe they should do it also. To offer same-day delivery, A-1 Express is a Same-Day Courier that can develop optimal same-day logistic solutions quickly nationwide. The Houston Courier has the delivery expertise and the latest in courier technology to create the online shipping options that shoppers demand.

    Reference: 7.13.16, www.internetretailer, Stefany Zaroban, 46 million Americans bought something on Amazon during Prime Day

    Wednesday
    Jul132016

    UPS Aims for Access Lockers to Grow E-Commerce

    It comes down to UPS staying current with the changes that today's e-commerce creates. Just being able to perform traditional shipping options won't cut it alone. A versatile carrier is what UPS must become in order to provide what so many retailers and other companies require. This is what the latest move UPS appears to confirm what the shipment leader is in pursuit of doing.

    Small biz trends recently reported UPS has officially launched its new Access Point Lockers. UPS initially had been piloting the locker program within nine of its' stores in Chicago since 2014. With the roll out, the carrier now has added 300 self-service package pickup lockers nationwide. This is aggressive expansion for a new delivery solution such as this. Plagued with several error shipment complaints from customers, UPS is seeking to quickly implement the locker system to establish a strong customer loyalty base now, yet especially for the fast approaching holiday season.

    UPS Access Point locker program director Kalin Robinson stated in the article, “For online retailers, providing additional convenient delivery locations is one of the secrets to more shopping cart conversions, greater loyalty and happier customers. UPS Access Point lockers can be easily accessed when it fits the shopper’s schedule, giving an online retailer added value to present at checkout. The lockers enable more shoppers to enjoy the ease and simplicity of buying online." As more of its' customers desire simplicity with shopping online, so the demand grows for more retailers and carriers together to provide more simple, convenient delivery solutions.

    “The increase in online shopping parallels the interest in alternate delivery locations,” Robinson added. “UPS Access Point lockers are one of the many ways that UPS is helping our customers offer consumers a great online shopping experience.” Online shoppers are desiring options, even the options that are fast. As e-commerce grows, UPS is faced with the task of supplying consumers, retailers and others with with innovative delivery methods that all of them can consistently use.

    The world's largest package delivery company has even began to study Same-Day Delivery earlier this year. A strategic investment was made into Deliv, a start-up company that has created a niche similar to a Same-Day Courier, but utilizes a crowd-sourcing approach to perform its deliveries. The venture arm of UPS led a $28 million funding round for Deliv, making it clear that UPS is serious about developing value-added services. UPS also has taken a minority stake in Deliv and sits in on board meetings as well.

    The UPS lockers will certainly serve as another reminder of how e-commerce has affected the way we do business. Customers are driving online retail to become as close to physical store shopping as it can be. A1Express has hundreds of companies that it provides same-day delivery for, as well as develop innovative same-day logistic solutions throughout the New York area. The New York Courier operates with the latest in courier technology that is essential for on-time and accurate deliveries.

    Reference: 7.7.16, www.smallbiztrends.com, Antony Maina, UPS Lockers Serve eCommerce Customers without Delivery Address