With Huge First Quarter Loss, JC Penney Looks To Improve Online Shopping

In 2011, JC Penney's began pursuing to turn their retail ship around and back on a course of success. The retail company even hired former Apple retail executive Ron Johnson to lead the charge for future growth. The company has not seen the incline it has hoped for and in the first quarter of this year, JC Penney has hit huge losses for the worst.

CNNMoney reports JC Penney has suffered a first quarter loss of $289 million and a decrease of sales of 16.4% from 2012. Its' shares fell 2.2% on Thursday. This occurs after the step down of CEO Ron Johnson. The former CEO pursued to revive the company with new ideas and initiatives. He pursued to implement changes such as overhaul pricing, redesigned store layouts, and create mobile and self-checkout machines within stores. The attempt has not given JC Penney's the growth it is looking for so far.

JC Penney's now has new CEO Mike Ullman at the helm now and he knows there is work to be done. "We recognize the magnitude of the challenges that we face, and we believe we can put J.C. Penney back on a pathway to profitable growth", stated Ullman in an analyst conference call. One of the first actions the company has taken is admitting mistakes and asking customers to return via a YouTube channel ad. The company has also received a $1.75 billion loan from Goldman Sachs for the big push forward.

Former CEO Johnson did have a pursuit that has not change with Ullman, which is online retail. One of the areas Ullman mentioned about improving was relative to its' online store. "Over the last year, jcp.com functioned as a completely separate entity inside the company, with little synergy between stores and online," said Ullman. He pledged to reemphasize their private brands and increase its' online store performance.

Online shopping has had a great impact on many brick-and-mortar stores, some of which have ended up closing such as Circuit City, which JC Penney is pursuing to not have the same fate. The direction is clear that e-retail has now created a major revolution in the business world and brick-and-mortar stores must go with shift if they want to thrive. Large retailers such as Wal-Mart, Macy's, eBay, Google, and more are making online shopping a top business objective, putting the pieces together to make it more attractive and effective.

All of these online giants are even implementing same-day delivery of their online products as e-retail and mobile commerce becomes a standard in the way we do business. Same-day couriers like A-1 Express are being partnered with to offer delivery services to get online shoppers their products to their front door easy and fast. The Phoenix Courier has a national footprint and is able to assist companies like JC Penney implement profitable online store delivery ideas and solutions.

References: 5.16.13, CNNMoney, James O'Toole, Another massive loss for J.C. Penney

Amazon Offers Free Shipping Through Quidsi, Will Same-Day Delivery Become An Option?

There is no heavy-hitter so far that has come to match Amazon in the e-retail industry. They are the world's largest internet retailer and one reason is that they have an effective shipping program, namely Amazon Prime. Now, a company it owns, Quidsi Incorporated, is set to follow suit and implements its' own shipping program this year.

Quidsi Incorporated has just launched its' very own shipping program which offers its' customers the option of two-day deliveries reported Internet Retailer. The new shipping program is free, however, Quidsi will eventually charge an annual fee. Shoppers can sign up for a free three-month trial with a company code at checkout. More details about the Quidsi shipping program are not being disclosed, stated a spokeswoman for the company in the report, since it is described as being in pilot mode right now. The program applies to shopping across all of their 10 e-commerce sites, such as Diapers.com, Wag.com and Look.com.

“We will send you special insider deals every week,” Quidsi promises on its sites. There is no minimum purchase required to receive the free two-day shipping for the program. For shoppers not participated in the program, they can still receive free two-day shipping for a minimum purchase of $35. Amazon Prime has an annual membership fee of $79, for which customers receive two-day shipping on all orders and access to thousands of TV shows and films. With Quidsi, Amazon shows itself as on the cutting edge of e-retail and will continue to pursue major growth.

For the first quarter of 2013, growth did slow down for the online giant. Amazon experienced 22% growth in the first quarter, opposed to 36% growth in the first quarter last year. Inspite of the lower revenue, their profit margins did increase and one of the reasons was lower shipping expenses. Therefore, the shipping aspect of Amazon's business is a major factor in the outcome of its' future growth. It is clear with what the company is implementing with Quidsi, that a number of steps are being taken to make shipping their products efficient, easy and profitable.

Amazon continues to grow relative to their distribution centers as well, which helps their shipping strategy. Currently, Amazon has 46 warehouses in the US. They are reported to be building more and should have 54 distribution centers this year. With the number of distribution centers being built throughout the country, many experts believe Amazon is gearing up to move beyond 2-day shipping, to offering same-day delivery to its' customers. Same-day delivery is being testing by a number of retailers nationwide, such as Wal-Mart, eBay, Target, Macy's, and others. Online business has an opportunity to offer a faster delivery service than 2-day delivery and shoppers can have their products at their doorstep within hours. It could become a shipping offer by Amazon.

Same-day courier services like A-1 Express can assist e-retailers, such as Amazon, with shipping and delivery logistics solutions nationwide. This Portland Courier is able to perform same-day delivery to customers that are local to retail company distribution centers, stores, and warehouses. As e-commerce continues at develop, an optimal delivery system by a same-day courier will be just what e-retailers and online shoppers are looking for, especially for return shipments.

Reference: 5.9.13, Internet Retailer, Thad Reuter, More free shipping from Amazon

US E-Commerce Set To Reach $434 Billion By 2017, Retailers Can Use Couriers

Many have been watching the growth of e-commerce over recent years and has not slowed down. It's growth is currently at an average of 16% per year. E-Commerce sales appear they will continue to do so in the years to come as well. Experts have now put numbers to their findings and show they will reach very high by 2017.

According to eMarketer Incorporated, e-commerce sales will reach $434 billion by 2017 reported Internet Retailer. The projection is at a compounded annual growth rate. 2013 sales are expected to reach $258.9 billion. This is up from sales for 2012, which ended at $225.5 billion. This is also an increase from 2011, which was 15.8% at $194.7 billion. They project the numbers will taper off yearly and will be as the following: 14.6% in 2014, 14.2% in 2015, 13.6% in 2016 and 12.8% in 2017.

The report discussed how mobile devices are weighing in as a key component to the projected online growth. EMarketer has find that currently smartphones and tablets are accounting for 11% of e-commerce sales. They project by 2017, mobile devices will steadily grow, and they will account for 25% of all e-commerce sales. This is a large percentage considering this means one fourth of all e-commerce sales shoppers will perform transactions on-the-go, at home, or somewhere else. This shows shoppers will continue to seek convenience and speed to get their online purchases in their hands.

Web sales increase will be largely seen in the category of computers and electronics. These categories will account for $56.8 billion in 2013, equating to 21.9% of all e-commerce growth. Apparel and accessory categories will also rank as being on high online demand by shoppers. They will reach $54.2 billion this year, which equates to 20.9% of web sales this year. Shoppers have products they are looking for on the web and will be cross-shopping to get the deals they are looking for, especially with knowing there will always be a deal available if they purchase online.

Web traffic has a lot to do will the forecast as well. There is an increased online traffic for retail giants like Amazon in 2012, where online traffic grew 3% in the fourth quarter at 115 million. Macy's online traffic grew 11% in the fourth quarter at 118 million. There certainly appears to be a trend that e-commerce is steadily growing and consumers are more comfortable shopping online. With the increase of e-commerce, many online retailers such as Wal-Mart, eBay, Nordstrom's, Target, and more are testing same-day delivery for their e-commerce sales to offer the components of online shopping customers are looking for.

A same-day courier like A-1 Express can assist retailers capitalize on the e-commerce growth. This nationwide courier is able to develop a courier logistics solution that fits the online delivery needs of retailers. As e-commerce continues at this fast pace, an optimal delivery system by a same-day courier will be just what e-retailers need to compete through 2017 and beyond.

Reference: 4.25.13, Internet Retailer, Allison Enright, U.S. e-commerce sales could top $434 billion in 2017

Senate May End Tax-Free Online Shopping, Lower Costs With A Same-Day Courier

Online shopping is growing at a very fast pace. From mobile phones to ipads, people have become more comfortable with shopping online in the recent years. There are a number of issues that have risen regarding online business and one of those is online sales tax.

Currently, states collect sales taxes only if the e-retailer has a physical store within that particular state. However, based on the beginning debate regarding the issue, this could very well change. Yahoo News reported an online sales tax debate has started this week, after the Senate passed a test vote yesterday. The Senate passed the test bill by a wide margin of 74 to 20. With this level of support continuing, the real bill could actually pass as early as this week.

Instead of online sales being tax-free for online retailers and having an advantage over brick-and-mortar stores, supporters feel it will level the playing field. "I believe it is important to level the playing field for all retailers," said Senator Mike Enzi, Republican of Wyoming, who sponsored the bill. "We should not be subsidizing some taxpayers at the expense of others." It will generate lost revenue on the state level. Also, President Obama supports the bill as well.

Opposers of the bill feel it will impose complicated regulations on retailers. EBay is one of them. To rally opposition to the bill, EBay president and CEO stated, "I hope you agree that imposing unnecessary tax burdens on small online businesses is a bad idea. Join us in letting your Members of Congress know they should protect small online businesses, not potentially put them out of business." Others in opposition are Senators representing states that have no sales tax.

EBay wasn't the the only online giant mentioned in the report. Amazon also weighed in and is in favor of the bill. "Amazon.com has long supported a simplified nationwide approach that is evenhandedly applied and applicable to all but the smallest volume sellers," Paul Misener, Amazon's vice president of global public policy wrote in a letter to senators. The bill will ultimately bring more revenue to the states in which the shopper lives in. Businesses that make less than $1 million per year will be exempt for the bill.

Whether the bill to end online tax-free shopping passes or not, e-retailers will need to continue to seek for ways to manage their costs. One way is using same-day delivery. Same-day courier services like A-1 Express are a viable option keep their shipping costs down, in the event online sales taxes do increase. This Dallas courier can perform same-day deliveries at a lower cost because of route optimization and transportation expertise. A-1 Express can create a courier logistics solution specific for any online retailer's same-day delivery needs.

Reference: 4.22.13., YahooNews, Stephen Ohlemacher, Senate bill jeopardizes tax-free online shopping

Lower Gas Prices This Summer, Use Courier For Same-Day Deliveries

Gas prices have fluctuated upwards over first few months of the new year, and many have been hoping they would lower. As Summer approaches, we are finally seeing gas prices turn around and show some signs of life. It has now been reported gas prices will get cheaper in the months to come.

It has been forecasted by the Energy Information Administration that we will pay less at the pump this coming Summer reported CNN Money. The agency estimates the average price for gas will roughly $3.63 per gallon. This beats out the average around this time last year of $3.69. The EIA even projects cheaper gas prices next year, which we could very well experience a full-year average price per gallon of $3.39. This would definitely make many drivers and transportation companies very happy.

One reason prices will be kept low is due to more fuel efficient cars on the highway. Another reason is the increase in oil production in North America. The economic recovery of the US will more than likely be aided by the cheaper gas prices. Consumers will be able to have more money for spending this summer. This will also affect lower traveling costs for consumers and airlines. The affect of gas could be just what the economy needs to make a big leap for the the remainder of the year.

This highest year average on record for the US was in 2012 at $3.69 per gallon. In 2008, the US experienced its' most expensive driving season with an average of $3.81 per gallon. AAA also reported the highest daily price on record of $4.11 a gallon on July 17th that same year. The current national average for gas is $3.58, which is down from $3.69 last month. California and Hawaii have the highest current average, toppling over the $4 mark.

Gas prices decreasing is great news compared to a couple of month ago. In February, the price of gas increased for 32 consecutive days. The national average of almost $3.75 per gallon and analysts forecasted the prices could impact the US economic recovery. Known oil producer Brent Crude Oil reached its' highest oil price in nine months at $119.17. Along with projected oil production shortages, many felt gas prices could eclipse $5 per gallon this Summer.

With gas prices getting cheaper, businesses can continue to save on their transportation costs by using a courier. Same-day couriers like A-1 Express are a viable option instead of using employees for daily deposits, part distribution and time-sensitive deliveries. Even with lower gas prices, this Charlotte courier can perform same-day deliveries at a lower cost because of route optimization and transportation expertise. A-1 Express can create a courier logistics solution specific to your same-day delivery needs.

Reference: 4.9.13., CNNMoney, Chris Isidore, You'll pay a little less for gas this summer