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    Friday
    Jun242016

    Look Out Same-Day Delivery, Here Comes Staples

    With Same-Day Delivery on the rise with companies like Amazon and Best Buy, Staples is a close competitor, having some share in the consumer electronics market also. Its no surprise that Staples has decided to jump into offering the trendy online service option in order to increase sales and meet customer online demand.

    Staples has announced that it has officially launched "Staples Rush”, a same-day delivery program within several major cities throughout the US. The announcement comes shortly after its' denied merger with Office Depot. The initial roll-out will include parts of Boston, Dallas and Manhattan. Los Angeles, San Francisco, Seattle, Chicago, and Houston will receive the service next. Staples' same-day delivery will involve only product delivery, however, copying and printing will be available in the coming months.

    “By offering a wholly-owned, same-day delivery experience, Staples is providing businesses the type of customer service they’ve come to expect from us throughout their entire transaction,” said Mike Bhaskaran, Staples' executive vice president of supply chain and logistics. He went on to say, “The development process for Staples Rush is a truly a collaborative and cross-functional effort that brought together different areas of expertise, including supply chain, eCommerce and merchandising, to create a valuable service for our customers.”

    Staple's is somewhat in competition with Best Buy, who announced in April this year that it will be launching a pilot same-day delivery program. The consumer electronics retail leader began testing same-day delivery in 13 more major metropolitan markets throughout the US. BestBuy jumped in deeper into the service after Amazon's announcement that it was expanding its' current free same-day delivery into 11 additional US cities. Amazon is influencing several large retailers to dive into same-day delivery or risk losing market share online.

    It may not have directly turned Staple's into launching Staple Rush; however, make no mistake that there is an under-current that Amazon has created online that is leaving most retailers with no choice.

    Faisal Masud, executive vice president of global eCommerce at Staples, commented in regards to the need for Staple's to offer faster order fulfillment. He stated, “Businesses want their online orders fulfilled faster than ever. Thanks to Staples’ unmatched omnichannel capabilities, which already include the ability to buy online and pickup in store, we will deliver the products customers need when they need them, so they can make more happen without having to wait on shipped orders.”

    The closer in proximity a retailer is to their customers, the faster they can get those online items into their hands. Staple's is another big retailer that has the brick-and-mortar store volume to feed same-day delivery demand. Those locations will be used like traditional warehouses, able to not only fulfill online orders, but also correct them.

    Staple's has hundreds of locations throughout the US, yet the key is partnering with a delivery provider that can perform on-time services and develop a profitable same-day logistics solution. Many retailers like Staple's, build their same-day delivery with a Same-Day Courier like A-1 Express that has a national footprint and courier expertise to establish a sound delivery operation. With its' experience, The Seattle Courier can assist Staple's thrive as it pursues to compete with BestBuy, Amazon and more.

    Reference: 6.15.16, www.pymnts.com, Staples Jumps Into Same-Day Delivery

    Friday
    Jun102016

    Wal-Mart Competes With Amazon, Launches Same-Day Pilot Program

    Everyone was expecting for it to happen. Experts knew that the world's largest retailer was going to dive into Same-Day Delivery, it was only a matter of when. Now, Wal-Mart has said it's time.

    Wal-Mart has announced that it will launch several same-day delivery pilot program of grocery deliveries in Denver, as well as another unidentified market this month. It will utilize Uber and Lyft ride-hailing services to perform the deliveries. Walmart currently has a pilot program of “last mile” grocery and general merchandise deliveries with Deliv in Miami, which began in March. San Jose has been a city in which the retailer has been testing same-day grocery delivery. The Walmart and Sam’s Club pilot program will cost customers a $7-$10 delivery fee at the time of purchase online once they choose “same-day delivery” at checkout.

    The article mentioned that Wal-Mart appears to be partnering with start-up delivery company Deliv for its' same-day delivery pilot program. Deliv founder and CEO Daphne Carmeli stated, “We got a call from Walmart and are pretty excited to be working with the biggest retailer in the world. It’s amazing the effect the ‘A-word,’ Amazon, is having on the e-commerce landscape. They have created a customer expectation of same-day delivery. It’s the new standard. If you’re selling physical goods to customers you’ve got to figure out a way to get them to customers as quickly as possible.”

    In recent years, Amazon has been intensely focused on same-day delivery. Based on its frequent expansion, it is clear the e-retail leader's vision is to offer the service nationwide. Amazon added 11 major US cities to its' same-day delivery program. Those new additional US cities included Sacramento, Fresno, Stockton, Louisville, Raleigh, Cincinnati, Richmond, Tucson, Milwaukee, Nashville, and Charlotte. Prior to that, Amazon's same-day delivery involved San Francisco Bay Area, Seattle-Tacoma, Dallas-Fort Worth, San Diego, Indianapolis, Phoenix, Tampa Bay, Baltimore, Washington DC, New York, Philadelphia, Chicago, Orlando, and Atlanta as well. Therefore, the retailer has same-day delivery in 27 cities total.

    What makes Amazon's same-day delivery very competitive is that it is free for Prime members. For all online orders over $35, its' members get the service free within participating cities, which more than likely there will be more cities to come this year. The holiday season is becoming more and more opportunistic for physical and web-based retailers to create sales growth. Amazon, Wal-Mart, Macy's, BestBuy, and more will continue to position themselves aggressively with same-day delivery in the coming months.

    With offering last-mile deliveries, most retailers outsource to a company that can perform the actual service for them. Wal-Mart could partner with a Same-Day Courier like A-1 Express to pick up and deliver from their physical stores. The Chicago Courier has the courier expertise and the national footprint to expand with like-sized retailers like Wal-Mart. Just any delivery provider won't due for the robust operation and demand that Wal-Mart has. A-1 Express is suited for Wal-Mart and can help establish an optimal same-day solution.

    Reference: 6.3.16, www.retailingtoday.com,Dan Bethauime, Wal-Mart taking on Amazon with same-day delivery pilot

    Wednesday
    Jun012016

    Warehouse Industry Growing because of Same-Day Delivery

    Warehousing is what retailers have come to grips as a vital part of having success with Same-Day Delivery. This is something Amazon had in mind when it strategically planted state-of-the-art order fulfillment centers throughout the US. As a result, the e-retail leader is driving a trend online with fast delivery that must have close proximity warehousing to work. Now, more retailers are renting warehouse space and the numbers show it.

    Retail Dive reported via Bloomberg that online retail is now accounting for 20% of warehouse space. Also, the renting of prime warehouse space in the US rose 9.9% last year. It pointed out six markets that were among the nine with the biggest increases worldwide. Oakland topped the increases with 29.8%, which was seen also in Northern New Jersey, according to real-estate brokerage firm CBRE.

    David Egan, CBRE’s head of industrial and logistics research for the Americas, told the Wall Street Journal earlier this month, “There are huge premiums being placed right now on being close to the consumer—speed of service, speed of delivery is a critical component of why people choose to buy from one retailer over another. To get the goods to consumers fast, you have to get close to them.”

    Amazon is driving the surge in warehousing within the retail industry resulting from same-day delivery expansion. The retailer leader launched 11 more major US cities to its' free same-day delivery program. Those new cities included Sacramento, Stockton, Charlotte, Cincinnati, Fresno, Louisville, Tucson, Milwaukee, Nashville, Raleigh, and Richmond. With a total of 27 service cities, Amazon is on pace to eventually provide same-day delivery nationwide, solely enabled by its distribution systems and warehousing.

    Centrally-located warehousing won't due when it comes to same-day delivery. This use to be the model for distribution until the weigh in of e-commerce and the ability to scale operations fast. Online retail is projected to reach $500 billion by 2018, which means there will be a heavy emphasis on how close can a retailer get their products to customer markets. Brick-and-mortar retailers use their store locations as warehouses and partner with a Same-Day Courier like A-1 Express to fulfill online order deliveries. With a New Jersey Courier that has a national footprint and leading courier technology like this, it helps retailers create the competitive advantage they need.

    When demand spikes upward in specific markets, a retailer can quickly implement a same-day delivery solution there. With last-mile deliveries, just having a solid warehousing system in place isn't enough. It has to be coupled with online order fulfillment supply chain to get customer purchases to their front door. Indeed, same-day delivery is expected to reach $987 million by 2019, which will result in the inevitable growth to be seized by a company. The one with the right delivery outfit will be the one that keeps the business. Google, Amazon, Whole Foods, Macy's, and more have jumped into offering a fast delivery option and others should do the same.

    Reference: 5.25.16, www.retaildive.com,Daphne Howland, Report: E-commerce growth driving rush for warehouse space

    Monday
    May162016

    Amazon Expands Same-Day Delivery to All Service Area Zip Codes

    There has been recent speculation that minorities have not been treated equally relative to Amazon offering Same-Day Delivery in certain service area zip codes. To stamp out any allegations, Amazon has decided to fix it.

    Bloomberg recently reported that Amazon has announced that it will now offer same-day delivery in every zip code within its' service areas. The largest e-retailer in the US has been expanding its' same-day delivery program rapidly in various US markets. It provides the service free to Prime members, which pay a $99 subscription cost per year. This issue arose last month, as the service was being offered in certain areas in Boston, yet not in Roxbury, which was in the center of the city. Service boundaries by Amazon were said to not have to do with race, but rather other factors, such as the concentration of Prime members in each area, proximity to warehouses and the company’s ability to find delivery partners to serve that area.

    Amazon made a statement obtained by the caucus and shared it with Bloomberg News, which said, "Very shortly, we will be expanding Prime Same Day Service to every zip code of the 27 cities where Prime Same Day delivery is currently launched. We will further not launch the service in any new regions, until we are able to secure a carrier for every zip code. We are still figuring out the details and procuring last mile delivery for each of these zips, but we should have 100 percent coverage shortly."

    It was also mentioned in the article that U.S. Representative George Kenneth Butterfield, a Democrat from North Carolina and chairman of the black caucus, said the group "is anticipating the results of Amazon’s plan to expand its delivery services to previously excluded zip codes." Illinois Congressman Bobby Rush called for an FTC investigation, in addition to speaking about the issue on the House of Representatives' floor. Shortly afterwards, Amazon pledged in a letter to Rush to serve Chicago’s South Side in within weeks.

    Same-day delivery is forecasted to reach $987 million by 2019, and it seems that Amazon knows its' potential. Last month, Amazon adding 11 major US cities to its' current free same-day delivery program. Those new cities included Sacramento, Stockton, Charlotte, Cincinnati, Fresno, Louisville, Tucson, Milwaukee, Nashville, Raleigh, and Richmond. This brought its' total service areas to 27 cities so far, and more than likely, the retailer is far from being done. Many experts believe Amazon's goal is offer free same-day delivery nationwide.

    As Amazon continues to outpace its competition, other retailers are implementing same-day delivery in order to keep up. A Same-Day Courier like A-1 Express can partner with any business or retailer to successfully develop last-mile deliveries through the US. The Chicago Courier has the courier expertise, technology and nationwide footprint to perform same-day delivery in various service areas and zip codes. Taking Amazon seriously by engaging in same-day delivery is the wisest move for any big name retailer to make.

    Reference: 5.6.16, Bloomberg News, Spencer Soper, Amazon to Fill All Racial Gaps in Same-Day Delivery Service

    Thursday
    May122016

    Shopify Now offers Same-Day Delivery

    So many retailers are after implementing Same-Day Delivery to fulfill online orders. It's a fast shipping option that retail leaders like Amazon, Google, Macy's, BestBuy, and more have all invested into making it a staple service. Online storefront software provider Shopify says it sees the potential of last-mile services, and now itsmerchants will have the opportunity provide same-day delivery.

    Shopify recently discussed in a blog that it has partnered with Postmates to offer a same-day delivery in around 200 cities nationwide. The cities were not named, yet more than likely, they will be those in which Postmates already supplies the service. It was indicated that Postmates' current coverage area will expand also. This will result in more markets that Shopify's merchant customers can establish same-day options. Postmates is also looking to set up services in Europe, beginning in the UK.

    The new service Shopify says will help its customers to be able to get their online products picked up and delivered as little as within an hour. This is becoming a standard option for most big name retailers that offer same-day delivery. There is a segment of the end customer market that want it fast, and Shopify is entrusting Postmates to help make it consistently happen. Same-day delivery is expected to reach $987 million by 2019, therefore, demand for the service will grow.

    Its merchants were offered $50 in free Postmates deliveries through May 3rd and 5th last week. With the volume of clients that Shopify has, it makes sense to turn to same-day delivery to boost revenue. The e-commerce provider gains more than 100,000 e-retail clients annually. This mean you have an array of e-retailers with thousands of online products that are seeking to increase sales.

    One of the big reasons why more and more companies are going same-day delivery is because the largest e-retailer in the world is driving it. Amazon announced last month that it was adding 11 more major US cities to its' current free same-day delivery program. Those new cities included Sacramento, Stockton, Charlotte, Cincinnati, Fresno, Louisville, Tucson, Milwaukee, Nashville, Raleigh, and Richmond. This adds to the 17 cities that Amazon had before the expansion. Now with 27 total cities where the retailer offers free same-day delivery, Amazon's goal is clear to take the service nationwide.

    As Shopify did with Postmates, many retailers are partnering with a Same-Day Courier like A-1 Express to expand market share online. The Pittsburgh Courier is viable option to partner with for same-day logistic solutions. With a nationwide footprint, A-1 Express can help any online merchant be successful with last-mile deliveries.

    Reference: 5.3.16, www.shopify.com, Shawn French, Now Shopify Merchants Can Offer Their Customers Same-day Delivery Through Postmates