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    Thursday
    May292014

    Amazon To Use Robots In Warehouses And Same-Day Delivery For Online Orders

    When it comes to aggressive, pioneering technology in e-retail order fulfillment, there are few companies doing what Amazon does. The robust, web-based retailer numerous of fulfillment centers strategically placed throughout the US, and the number is growing rapidly. Yet, Amazon is not only after quantifying its’ growth, but also optimizing the quality of the warehouses. This is where Amazon’s next step could be groundbreaking and revolutionize how retailers fulfill their orders as soon as this year.

    Amazon is about to increase the current 1,000 robot worker scale in its’ warehouses to 10,000 by the end of 2014 reported CNN Money. Amazon CEO Jeff Bezos held a meeting with its’ shareholders explaining the new initiative and its’ benefits. It will save time and money, as fulfillment cost will go down.

    The retailer bought robot-maker Kiva Systems two years ago and is using those same robots today. The report stated the robots operate on a highly, complex grid, which requires months of planning and testing to make it work. The new robots will not change Amazon’s employee numbers at the warehouses, but will enhance order fulfillment. This is one aspect of Amazon fulfilling orders, utilizing the latest in robot technology. However, Bezos showed last year that not only technology innovation for order fulfillment is high on the retailer's list, but also the speed in which online packages leave the warehouse and into the shopper’s hands.

    Using actual flying drones for same-day delivery of online orders was announced by the CEO as a serious implementation, which Amazon televised drone footage on 60 Minutes. The "octocopters" will be used for Prime Air, another service option within Amazon's Prime family. Customers will be able to receive the online orders within thirty minutes or less. Drones may be quite a hefty investment on the front end, but at the latter, its' definitely worth it. 86% of all Amazon order types actually meet the drone delivery criteria. This translates into volume to cover its' drone costs and gain profit share.

    The Federal Aviation Association (FAA) does provide some hurdles that the warehouse robots won't have to consider. The agency stated it will take "several years" to create the drone rules. The agency did state that it has already tested an "Unmanned Aircraft Systems roadmap" last year and is reviewing national airspace requirements. 7,500 drones will fly in the US within five years, which the first commercial drone was used last September for surveying. Inspite of the red tape, Amazon is as focused on drone use, as it is in warehouse robots.

    These floor-based robots are for the purpose of getting orders fulfilled faster, but its' for naught if Amazon can’t deliver the order just as fast, when it leaves the warehouse. This is where a Same-Day Courier Services like A-1 Express can make the difference, especially within a thirty-mile radius. The San Jose Courier can be a national source for Amazon to match its' speed inside the warehouse. With the logistical expertise and latest courier technology, A-1 Express can meet and exceed all of Amazon's same-day delivery needs. There is no need for Amazon to perform its' own deliveries, when A-1 Express can do it and make for lowering delivery costs long-term.

    Reference: 5.22.14, CNN Money, Katie Lobosco, Army of robots to invade Amazon warehouses

    Monday
    May192014

    More Battles By E-Retailer Amazon and Competitors For Same-Day Delivery

    It is not secret that same-day delivery is what retailers have honed in on and are determined to be the first to the finish line. Newcomers are springing up, roll-outs are being made, and new service innovations are being tossed around, trying to find what will fit. Enormous investments are being made by the largest "e-tailers" in the game, including Amazon, eBay, Google and more. All of them are certain success is at the door, and so the battle continues.

    Forbes reported recently about how the battles are intensifying regarding same-day delivery. Each of the big boys are all putting their formula to the test and are now expanding their versions. The idea is to make same-day delivery the norm for shoppers in big, highly populated cities, which will not only help e-tailers, but also brick-and-mortar retailers that manufacture the products. It will be a win-win, but the win only comes with the same-day delivery that works—with longevity. Seeing the growth being made by the heavy hitters, it appears all of them are confident with using their respective delivery models.

    Amazon has been quietly after same-day delivery for a while and now the e-tailer has been unfolding more of its' strategy as the battle heats up. The company has announced expanding its' same-day delivery into Los Angeles, San Francisco and Dallas. This means Amazon now has 12 metro cities in which it will offer same-day delivery. For orders placed between 8am and 12:15pm, Amazon will deliver by 9pm the same day. Not only is this coming, but Amazon is planning to bypass a same-day courier for online retail deliveries and perform its' own deliveries. Amazon will launch its' own delivery fleet, consisting of its’ own trucks and drivers. This is also being tested in San Francisco, yet Amazon could be planning to expand it to Los Angeles and New York City.

    The e-tail giant may be expanding, however, other competitors are making big moves of their own. EBay has rolled out eBay Now, which offers shoppers a one-to-two hour same-day delivery from local retailers into 25 cities. It has an "AM-PM" approach to its’ service levels. This consists of orders that are placed in the morning, will be delivery that afternoon. Orders placed in the afternoon, will be delivered the following morning. Via EBay Enterprise, the company is also offering a "ship-from-store" product, where customers can have their online orders picked up from a physical store, and then, delivered to their front door.

    Google is battling with its' Google Shopping Express, expanding into West Los Angeles and Manhattan. Newcomer Uber, has now launched UberRUSH, which includes delivering packages via a mobile app using the same transportation arrangement it has with its' urban passengers. Uber's charge is a flat $15 within a certain delivery zone and $5 more bucks for an outer zone delivery.

    Which of these e-tailer's models will work? Time and results will tell. Another viable option for e-tailers and brick-and-mortar stores is to turn to partnering with a same-day courier like A-1 Express. This Los Angeles Courier has the courier expertise and technology to implement a cost-effective delivery solution. A-1 Express has a nationwide footprint as well, able to roll-out same-day delivery in the US cities where retailers want it the most.

    Reference: 5.6.14, www.forbes.com, Robert Bowman, Battle Intensifies for Local and Same-Day Delivery Service by Amazon and Its Rivals

    Tuesday
    May132014

    Atlanta Business Chronicle Nominates A-1 Express As Second Fastest Growing Company

    With all of the work involved in the courier industry, it is a great achievement to be recognized on a large scale. For this to be done, a same-day courier must be doing something right . A-1 Express is growing fast and The Atlanta Business Chronicle not only took notice, but highly awarded the courier for its’ superior efforts.

    A-1 Express was honored on Friday by the Atlanta Business Chronicle as the second fastest growing private company in Atlanta. The award was given at the 19th. Annual Pacesetter Awards, an event recognizing Atlanta’s 100 fastest growing private companies. This is a very prestigious award and the courier is very pleased to not have only been named as one of the fastest growing companies, but to have also been so highly ranked. The courier finished second, only behind tech company Cloud Sherpas, which developed cloud technology services.

    The qualifications for the award consisted of being privately-owned, based in the Atlanta or Metro Atlanta area and a non-subsidiary of another company. The company also had to be established in the first quarter of 2011 or earlier, experienced a two-year growth of over 50% in sales, and generated between $1 million and $300 million in sales. Companies were ranked by a growth index formula, used to balance all business involved for accuracy also.

    The courier service has had some major revenue growth offering same-day delivery in the past few years. A-1 Express has more than doubled its’ revenue in 2012, jumping from $6 million to $14.5 million last year. To be a company performing well in a slow economy is something A-1 doesn’t take for granted either. CEO Mark McCurry mentioned in the Atlanta Business Chronicle that A-1 Express is ready to provide same-day delivery services that meet customer challenges via web solutions, GPS tracking, signature capture, and unsurpassed customer service.

    With a goal of $40 million annually by 2015, the nationwide courier is implementing many strategic moves in order to handle the growth headed its’ direction. Their major online retail partner is doing the same and A-1 Express has to keep up. The retailer has launched same-day delivery in California and is planning to enter into a number of major US markets, including Atlanta.

    Since 1997, the same-day courier has been providing same-day delivery, messenger, and a number of other transportation services nationwide. The Atlanta Courier offers a variety of courier services and solutions including same-day delivery, nationwide courier services, same-day bike messenger service, multiple location courier services, mail route logistic solutions, long-distance freight same-day delivery, straight truck delivery services, payroll deliveries, less-than-truckload shipping and more.

    The driver is same-day delivery, which has been in major headlines more and more in recent years. Amazon, Wal-Mart, eBay and more are all in the same-day delivery race, even with groceries, seeking after the key to unlock more business online. A-1 Express is a premier same-day courier and has a national footprint, enabling it to implement efficient same-day delivery services to any online company desiring growth.

    Reference: 4.25.14, Atlanta Business Chronicle, Byron E. Small, 19th Annual Pacesetter Awards

    Tuesday
    May062014

    Wal-Mart, Google, Amazon And More In The Same-Day Delivery Race

    The race for same-day delivery is as competitive as they come. Physical stores are looking for ways to get their sales up, and online is how they will do it. As they look at their web-based retailers, like Amazon and Google, it is becoming very clear that without e-commerce, the brick-and-mortar companies are going to eventually become a long-distance second option for making purchases. This is why same-day delivery has become so sought after for a number of large retailers.

    In a recent report, Forbes discussed the same-day delivery race involving groceries and all of the big players trying to win first place in the online market. Amazon has its’ online grocery service, AmazonFresh, which rolled out in Seattle. It now has expanded to San Francisco and Los Angeles. Customers receive free same-day delivery for orders over $35. The online retailer is also building more and more strategically-located, fulfillment centers to get closer to their customers. Amazon knows that it can’t just be web-based. There has to be a level of physical reach to the customer to make a substantial profit and maintain the market.

    Google is in the heat of the pack, as the retailer rolled out Google Shopping Express. It’s Google’s version of same-day delivery of food for a number of brick-and-mortar retailers like Walgreen’s and Target. What started last year in the Bay area, has now expanded to Los Angeles. As far as perishable groceries, product management director Tom Fallow stated, “it’s something we’re in the advanced stages of working on”. Perishables would be very attractive to shoppers; however, they must be delivered within a short time span.

    The largest physical store retailer in the race is Wal-Mart and rightly so. Wal-Mart has at least 4,000 locations throughout the US and providing same-day delivery of their groceries makes sense. The company just entered its’ second market in Denver for its’ service “Wal-MarttoGo”. It includes customers being able to order online and pick up their order without having to get out of their vehicle. A Wal-Mart employee will pull the order and load the groceries for them. All the responses from those involved in the testing had on positive comments about the service. For Wal-Mart then, the issue will be the right pricing mix.

    Also, the report mentioned an insightful statistic about retailers turning toward online to beef up their sales. Researcher Forrester predicts that 10% of US sales will stem from e-commerce by 2017. This stat shows that online retail can be a revenue generator and it’s no wonder so many companies are in the same-day delivery race. It’s the connecting bridge from online selling, to the customer.

    Retailers, especially those that are web-based, can’t afford to not offer shoppers an online product with an optimal delivery system. A nationwide courier like A-1 Express can be just what a physical store retailer needs to improve their online delivery capacity. The Chicago Courier can implement a courier “last mile” solution quickly. Whether general items or groceries, A-1 Express can help physical retailers win the same-day delivery race.

    Reference: 4.16.14, www.forbes.com, Jeff Bercovici, The Same-Day War: Amazon, Google And Walmart Race To Bring Your Groceries

    Monday
    Apr282014

    Amazon's First Quarter Revenue Goes Up 23%, Still Will Advance Delivery System

    There is one online retailer that has it's grip on the industry, and it doesn't appear it is going to let go any time soon. Amazon is doing many things right and continues to impress experts at how its' branding, marketing and services is right in line with what shoppers want. So far this year, the retail giant has posted excellent results, increasing their revenue to 23%.

    Internet Retailer discussed the recent Amazon results, as the retailer seeks to improve every facet of its' business. Its' revenue went up to $19.74 billion this year, which is an increase from 22.8% during the same period in 2013. Within that revenue figure, Amazon's net product sales were $15.70 billion and $4.04 billion originated from outside merchant commissions. Some other notable figures included a net income of $108 million in the first quarter, compared to $82 million last year.

    "Based on the recent expansion of Amazon Fresh and the launch of Amazon Dash and Amazon Pantry, it is clear Amazon is increasing its focus on building a more robust consumables business, which we think could have broader implications for traditional hardlines retailers like Wal-Mart, Target and even Costco," stated Wells Fargo Securities analysts in the article. Amazon launched Prime Pantry early this year. The service gives Prime customers a 4-cubic foot box to fill up to 45 pounds of items within Amazon's new pantry section. Customers pay a flat fee of only $5.99.

    Amazon Dash is an interesting service device for AmazonFresh customers to use for their grocery shopping. Items can be added to their online shopping list via voice commands or bar code scanning. AmazonFresh, which originated in Seattle, has now spread to a small amount of other US cities and there are more cities to come. Wal-Mart is probably the largest retailer competing with Amazon on this front, as it has launched same-day delivery of groceries in US cities as well.

    The retailer does desire to make their delivery network better and better. UPS had a negative impact on Amazon's Christmas season last year and shoppers were not pleased with receiving their packages late. Amazon is not wanting this to happen again, therefore, their delivery system has to be efficient. The report mentioned how Amazon was testing a "last-mile" delivery service, in which it will use its' own trucks and drivers to transport products the final distance to their customer destinations. Experts agree that Amazon is pursuing to have their fulfillment centers as close to metro areas as it can.

    Recently, Amazon had a discussion in the Forbes article about revamping their delivery network as well, which is what the company expressed it is going to do this year. It did tackle the idea of utilizing a same-day courier to accomplish their same-day delivery initiatives. A same-day courier like A-1 Express has a national footprint to match such a robust online retailer like Amazon. The Miami Courier can optimally perform "last mile" deliveries, even redeliveries and returns. The courier can transport various products, even groceries, within hours. This is what Amazon is looking for, especially with AmazonFresh.

    Reference: 4.24.14, Internet Retailer, Thad Reuter, Amazon's revenue increases nearly 23% in Q1