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    Tuesday
    Sep012015

    Amazon Expands Again, This Time It's Seattle

    Amazon expands again, as it moves closer and closer to providing same-day delivery nationwide. USA Today reported how Amazon has literally come home with the popular service. Seattle is Amazon's hometown, and the web retailer has now implemented same-day delivery of thousands of products there. Prime Now will cover not only Seattle, but also Bellevue, Redmond and Kirkland zip codes and more will probably follow.

    The fast service is taking the retail market by storm, especially with offering free same-day services in Seattle and California. More cities are set to be added, such as San Francisco Bay Area, Baltimore, Boston, Dallas-Fort Worth, Indianapolis, Philadelphia, Phoenix, San Diego, Tampa Bay, Washington DC, New York, and Atlanta. These are all major cities that the service can ideally thrive in, being they have the economies of scale to make same-day delivery profitable. Prime Now started last December, and will span the US soon enough.

    How the service works is Prime Now is currently free for all members, which is performed within a two-hour window. For even faster service, Prime Now one-hour delivery is available for $8. Deliveries are made between 8am and 12am local time, seven days a week. Prime members pay $99 per year for free two-day shipping as well. Each option fits different shoppers and how they define convenience. With tech gadgets within an arms' reach, shoppers can purchase anything from wherever they are. This makes Amazon and other companies position themselves to have their online products accessible from anywhere too.

    The article mentioned how Amazon's Prime Now is helping the web-based retailer to compete with big-box retailers like Wal-Mart and Target. Wal-Mart is not only involved in same-day delivery in several US cities, but has also acquired online giant Yihaodian, which provides same-day and next-day delivery in China. It won't be long before we find Wal-Mart offering more same-day delivery in the US. Target is gaining ground online as well, experiencing 26% web sales growth and partnered with Google Express to make their delivery model work.

    Macy's is not far behind in the same-day delivery race. In fact, it may be ahead. The retailer expanded into nine more US markets this month. Prior to the holiday season in 2014, Macy's aggressively rolled out same-day delivery in 8 major US cities, which included San Francisco, Los Angeles, San Jose, Houston, Chicago, Seattle, Washington DC, and New Jersey. Now, not only with the new nine markets, Macy's will launch the service in a total of 14 new markets this year, making its' span larger than Amazon's. Both companies are gearing up for the holiday season only a few months away.

    Amazon's market reach is compelling other retailers to expand their own. A same-day courier like A-1 Express is a viable option for web-based and physical store retailers to partner with and grow. The Seattle Courier has a national footprint and develops fast implementation for same-day delivery expansion. No matter where a retailer needs to deliver within big cities for their same-day models, A-1 Express can logistically get it there.

    Reference: 8.26.15, Yahoo News, Don Reisinger, Amazon's same-day delivery comes to Seattle

    Tuesday
    Aug252015

    More Ship-From-Store Deliveries For Target

    There is so much that store retailers are doing online to compete with web-based retailers like Google and Amazon. Target has made strategic improvements to its' e-commerce and the numbers show it. Yet, it is doing something that web retailers can't do, which is utilize their physical stores for shipping.

    Internet Retailer reported how Target is now planning to expand its' ship-from-store capabilities, as second quarter sales have thrived. The same time last year, Target's e-commerce accounted for only 2.2% of its' overall sales, versus 2.7% in 2015. This doesn't appear like much, however, it equates to an almost $100 million jump from last year, resulted in increased web sales of 26.1%. With all of the online growth, Target is setting itself to triple the number of stores that will fulfill online orders in the second half of the year from 140 to 450, more than likely to gear up for the holidays.

    “Ship-from-store capabilities allow us to balance inventory across the network, leverage the capital and labor already in our stores, and reach guests more quickly", said Target CEO Brian Cornell. Store shipping allows products to be sourced from any store, but get it to the customer in the same request time frame. A few more duties are added to the retail clerk to get items picked, packed, and shipped out. Speed is the element that Target will benefit from the most, adding the versatility that satisfies customer delivery needs, even with same-day delivery. Shipping from stores within a close radius makes last-mile delivery execution easy. This could be an underlying driver for Target.

    Macy's is like Target, yet the retailer since last year has made a strong push to make ship-from-store delivery a core service product. However, Macy's is out front primarily with same-day delivery from its' stores. Prior to the holiday season last year, Macy's launched same-day delivery in 8 major US cities, including San Francisco, San Jose, Los Angeles, Houston, Seattle, Chicago, Washington DC, and New Jersey. Customers can get same-day delivery with Macy's for all online orders placed daily by 1pm and by 11 am on Sundays. Now, the popular retailer is expanding into 14 new markets this year, making its' span larger than Amazon.

    Target already works with Google Express in several cities to handle its' fast online pick up from stores. The question is will it heavily expand like Macy's? Increased online sales show that Target could go in that direction. Same-day delivery works with volume and it would fit, as Target is just about everywhere in the US. Nationwide retailers like Ace Hardware and Petco have also jumped into the race of same-day delivery. A same-day courier like A-1 Express is ideal for brick-and-mortar retailers to thrive and do it quickly. A-1 Express has a national footprint and is capable of implementing same-day solutions fast. The Dallas Courier is equipped to handle robust delivery programs.

    If Target focuses on 2-3 day, ship-from-store options for some of the market, the other market of shoppers that enjoy fast, convenient delivery will need Target's attention too. As companies like Google and Amazon expand online to meet these customers at the door with same-day delivery, Target knows it must venture out farther with same-day services in order to continue growth.

    Reference: 8.19.15, www.internetretailer, Matt Lindner, Target goes full speed with ship-from-store

    Thursday
    Aug202015

    Macy's Expands Same-Day Delivery Again

    There is no slowing down for Macy's with same-day delivery. Earlier this year, Macy's has announced that it was moving its' fulfillment center in West Sacramento, California, to a larger facility. It's clear what the reason for the investment is. Macy's has been planning to expand the service, and now, it has made another move to put their facilities to use.

    Macy's has announced yet another expansion of same-day delivery. USA Today highlighted days ago the department store retailer is continuing to grow and be a frontrunner for the fast service within the store-based retail industry, mainly with its' sights on competing against Amazon. Macy's is planning on entering into 14 new markets with the service beginning this month. More than likely, the retailer is gearing up early for the holiday season.

    Late last year prior to the holiday season, Macy's launched same-day delivery in 8 major US cities, including San Francisco, San Jose, Los Angeles, Seattle, Chicago, Houston, Washington DC, and New Jersey. Bloomingdale's, its' sister company, launched the service out in 4 of those cities: San Francisco, Los Angeles, San Jose, and Chicago. Macy's offers customers same-day delivery for all online orders placed by 1pm. Orders must be placed by 11 am on Sundays as well.

    The fast service is one reason Macy's is making huge investments into its' growth. Macy's stated in the report that it expects capital expenditures to hit $1.2 billion this year, an increase from $1.07 billion in 2014. The online retail market is anticipated to grow to $500 billion by 2018, and Macy's knows it. The more shoppers become use to tech gadgets getting items to their door step, the less time they'll spend commuting to brick-and-mortar stores. Yes, customers will still travel to stores to shop; however, Macy's wants to capture those shoppers that decide to buy online.

    Macy's is racing for good reason. Google is on the move, as well as Amazon, which recently rolled out free same-day service in California to Prime Members. The retailer has stated that more major US cities are to come, including the San Francisco Bay Area, Baltimore, Boston, Dallas-Fort Worth, Indianapolis, New York, Philadelphia, Phoenix, San Diego, Seattle-Tacoma, Tampa Bay, Washington DC, and Atlanta. There will be more than 500 cities and towns included at the launch in the future.

    As Macy's expands, there will be more physical store retailers that desire to create more sales outside of their stores to compete too. Just like Macy's, other retailers can obtain a delivery partner to perform their deliveries for them. A same-day courier like A-1 Express has all of the components needed for a sound last-mile delivery program, including a national footprint to meet current same-day expectations and future expansion. As a San Diego Courier that knows courier logistics, A-1 Express can help Macy's and other retailers make online retail a core competency.

    Reference: 8.5.15, USA Today, Hadley Malcolm, Macy's expands same-day delivery

    Tuesday
    Aug112015

    EBay Shuts Down EBay Now Same-Day Delivery

    Ebay is one of the top online retailers in the market, in spite of the recent news of its move regarding shut down same-day delivery nationwide. EBay Now had a lot of potential, however, it just didn't produce the results eBay was looking for.

    CNet reported how eBay has totally put to rest eBay Now. Former CEO John Donahoe said last October that the service is "not essential to our core target customer". It's an end to eBay Now that many saw coming, as the e-retailer stopped growing the pilot program service and pulled the plug on its' eBay Now mobile app. EBay's shut down of the service shows no matter how popular a service can be and what competitor is doing it, it has to make sense for you to sustain and continue forward. EBay started the service three years ago in hopes to compete with Amazon and Google, two of its' other competitors that have a web-based arsenal. Both of them have heavily invested in same-day delivery services as well.

    Amazon has put itself on the fast track to make same-day delivery an integral part of its' business. What started with around a small fee for Prime members, is now going to be free. The retailer has set up Prime Now in several major US cities, including the San Francisco Bay Area, Baltimore, Dallas-Fort Worth, Indianapolis, New York, Philadelphia, Phoenix, San Diego, Seattle-Tacoma, Tampa Bay, Washington DC, Boston, and Atlanta. With the launch, more than 500 cities and towns included, as well as additional cities that Amazon plans to add in the coming years.

    Google has launched Google Express in major US cities as well. It's no longer just a search engine, but has found partnering with physical store retailers is a niche that it can gain revenue from. Target, BestBuy, Wal-Green's, Toys-R-Us, and others have partnered with Google to pick up and deliver retail items directly from their stores to customers. EBay was in the race too, but decided to throw in the towel, even shutting down the same-day delivery pilot program in Brooklyn that began last December. The retirement of the Brooklyn service involved roughly 80 local merchants. The service will slowly cut away at eBay Now until it has totally been eliminated.

    The article stated that EBay Now was available in New York, Chicago, Dallas and in the San Francisco Bay Area. Both the Brooklyn program and eBay Now will gradually end completely by this Friday. The retailer will also stop using eBay Motors, eBay Fashion and eBay Valet, which are three of its' less popular apps to cut down customer confusion and streamline attention to it's primary eBay app. Same-day delivery isn't just about having a same-day courier like A-1 Express to help with the delivery aspect of the service. The San Francisco Courier has a national footprint to help eBay thrive, yet, it shows that a business model ultimately has to to be profitable in order to stand long-term. We will see if eBay chooses to try same-day delivery again in the future.

    Reference: 7.27.15, www.cnet.com, Ben Fox Rubin, eBay Now rapid delivery service shut down

    Tuesday
    Jul142015

    Diapers.com Says Busy Moms Using Same-Day Delivery

    It use to be challenging for parenthood moms taking care of their newborn or infant when those "suddenlies" occur, like running out of diapers. Not any more. Now for those moments, moms have turned to having their baby in one hand and a phone in the other, as they turn to same-day delivery for all sorts of baby items.

    Mashable recently reported how Diapers.com is in a growing mobile market of moms buying immediate baby needs. Diapers.com experienced 50% of purchases made from a mobile device last year. This is up 25% from the year prior. Within a US retail market in which only mobile shopping accounted for 1% of total sales, Diapers.com is seeing a thriving trend as moms are going mobile. Moms are seeing the convenience in fast delivery when they run out of not only diapers, but other baby products like baby food, baby wipes, formula, and more.

    "Moms send us stories all the time of nursing her baby at 3 a.m., realizing she's almost out of diapers or some other essential, placing an order with us through our app, and having the package show up at her door later that day," commented Michal Geller, a senior vice president of marketing and business development for Diapers.com. He went on to say, "Same-day delivery is a game-changer for busy moms". Most of the mobile shopping is happening from home or at work, not on the go. "Many of our customers cite that they place orders on their Diapers.com app while rocking or nursing their baby," Geller added.

    The article mentions how the diaper market itself is forecasted to reach $52 billion worldwide by 2017. This is just one dynamic of a vast baby retail market, and the growth in one product will certainly affect another. Another relative forecast is how online retail overall is expected to reach $500 billion by 2018. With these figures, it's not a coincidence that Amazon made the move to buy Diapers.com and its family of sites — Soap.com and AfterSchool.com — for $550 million in 2010. Diapers.com now has access to Amazon warehouses, making their supply chain for delivery even more effortless to go along with its' popular app.

    The app is specifically designed for one-handed use, which is great for moms. Customer shopping carts also stay connected to their account throughout the browsing process, even when toggling between laptop and smartphone. Geller mentioned that tablet use has "decreased significantly" in spite of its' mobile growth within the past year. "The modern mom — I see it from my wife and from my wife's friends — the phone has become such a useful tool to have at her side and in her pocket and in her hand. We're going to continue to see growth in that area. We absolutely believe that the phone is mom's co-pilot to some degree. To the extent that we want to be her best friend, we see those things go hand in hand", He said.

    Diapers.com isn't the only retailer involved with same-day delivery. Google, Wal-Mart, Petco, Target, and more have all decided to dive into meeting on-demand shoppers where they are. Therefore moms have plenty of retail options, as well as couriers to deliver to them. A same-day courier like A-1 Express can help moms get baby products fast and retailers has a superior delivery partner to turn to. The New York Courier has a national footprint and the same-day logistics expertise needed for mobile shopping now and in the coming growth years ahead.

    Reference: 7.8.15, www.mashable.com, Adrienne LaFrance, Mobile shopping's early adopters: New moms