Amazon Set To Launch Same-Day Delivery Grocery Service In New York

Amazon is doing a lot of good things with its' same-day delivery grocery service AmazonFresh. It is a service many experts didn't expect to go this far, yet Amazon is proving the naysayers wrong. The service is having success in various cities, as Amazon has established the service on the west coast. Now the retail giant is making leaps to expand the new service to one of the biggest cities in the US--New York.

Internet Retailer reported Amazon has announced it will be launching AmazonFresh in the New York. This will be the first actual launching of the service on the eastern coast of the US. The retail giant has already started Amazon Fresh in San Francisco, Seattle, and Los Angeles. AmazonFresh customers pay a $299 annual fee for free delivery of orders of more than $35, which includes delivery of the items Amazon is more known for selling—such as books, movies, toys and electronics. Currently, Amazon charges $10 per for all orders under $100 bucks, and if it is over $100, there is no charge for delivery.

There is some concern on whether the branding of Amazon will be received by customers to actually buy groceries from the online retailer. “To me the competitive advantage is the brand,” stated Tom Forte, a senior analyst with Telsey Advisory Group LP. “It’s having customers who are familiar with Amazon, who have been ordering with Amazon for an extended period of time, that can deliver them groceries and other items from Amazon in a timely manner.” Amazon is widely known for offering a variety of products, yet will the company be able to market Amazon Fresh just right to create the same level of trust by customers relative to groceries.

Amazon will also have its' fair share of competition on the east coast. Two of the big name online retailers that are already performing same-day delivery of groceries there is Peapod and Fresh Direct. Peapod is the leading grocery service provider, which reached $525 million in online sales in 2012. The company is already services Chicago, New York, Philadelphia, Boston, Milwaukee, Washington DC, and Indianapolis. Fresh Direct had $400 million in sales the same year, yet only services New York and Philadelphia.

Forte also stated in the report his thoughts on why Amazon is in the grocery delivery business in the first place. “AmazonFresh is another same-day-shipping-type move by Amazon that’s all about getting people to buy products on Amazon and not somewhere else. The reason that Amazon is interested in grocery is because the frequency of delivery. Amazon wants to have multiple touch points with the consumer and this is another move in that direction.” This will also add to the volume of service and increase profit per delivery, especially because the delivery price is has to remain at low cost for shoppers to buy into it.

Time will tell whether Amazon's same-day delivery of groceries in New York will be well-received by customers there. Either way, Amazon will still need an effective delivery solution to make sure the groceries arrive at the customer's front door on time. Same-Day Couriers like A-1 Express can partner e-retailers like Amazon and perform same-day grocery delivery nationwide. The New York Courier has the courier expertise and innovation to quickly implement same-day delivery to help Amazon continue to gain ground in the grocery retail market.

Reference: 12.13.13, Internet Retailer, Stefany Moore, Can Amazon sell groceries in the Big Apple?

Amazon Testing Drones For Same-Day Delivery

One thing about same-day delivery is most retailers and shoppers like the fact that it is so convenient. The ease of the service is undeniable and online business sees the benefits of offering this level of service. Amazon is one retailer that offers same-day delivery and has over 40 order fulfillment centers to aid the service to spread easily in more US cities. Now, the retail giant is testing another way to make same-day delivery in the future even more convenient.

Internet Retailers recently reported that Amazon released new information that the retailer is testing its' first new delivery model using drones. The drones will be used to deliver only small packages to online shoppers. The drones will only deliver packages that are 5 pounds or less. It remains unsaid on whether this weight limit will increase, however, 86% of all Amazon orders meet the drone delivery criteria.

The service will be called Prime Air, which is identical to the Prime family called Amazon Prime. For a $79 yearly fee, online customers can subscribe to a yearly free shipping program. Amazon may offer with Prime Air a subscription along those lines as well. The service offering a subscription is yet to be made known with the drone testing still in process, however, same-day drone delivery will probably be very attractive for all customers worldwide.

Amazon made a statement relative to drone use for same-day delivery and the company appears to be very excited about the futuristic service. Amazon stated in the report, “The goal of this new delivery system is to get packages into customers' hands in 30 minutes or less using unmanned aerial vehicles. Putting Prime Air into commercial use will take some number of years and the [Federal Aviation Administration] rules and regulations.”

The Federal Aviation Association (FAA) did stated the drone same-day delivery will take same-day delivery stated within "several years" to create the rules, which will be drone deliveries like this. The agency also state it has tested "Unmanned Aircraft Systems roadmap" last month, discussing the requirements for us to enter national airspace", Agency administrator Michael Huerta stated in the report stating all deliveries will travel correctly. "It provides a five-year outlook and will have annual updates." 7,500 drones will being flying in the US within five years, which the first commercial drone was used for surveying this past September for a health project.

Amazon is having e-retailers guessing on what will be the next big trend. E-retailers, with large volume of orders to fulfill, will need a delivery system in place via partners such as a Same-Day Courier like A-1 Express. Until this service gets off the ground, e-retailers can call on the Portland Courier the provide superior delivery services and quick service implementation as well.

Reference: 12.2.13, Internet Retailer, Thad Reuter, Amazon.com dances with the drones

UPS Rates Increasing In 2014, E-Retailers Can Use Same-Day Courier

Shipping your packages as a customer is one thing, yet shipping packages as an e-retailer is another. Transportation makes up 25-35% of the cost of a product, therefore, on a volume scale it is crucial to have a shipping system that is cost effective. Most e-retailers utilize worldwide carriers like UPS to conduct loads of shipping functions for them. If their shipping costs go up, it will directly effect the retailer.

Now with the latest news about UPS and their upcoming rates for 2014, retailers will definitely have to see how they will adjust to the rate changes. UPS has announced its’ rates will have an average increase of 4.9% in 2014, reported Internet Retailer. The new rates will actually become effective as of December 30th. of 2013. Where e-retailers will really experience the hit is in regards to small packages, which is what e-retailers mostly ship. This is what the president of LJM Consultants Ken Wood stated in the report, which is a firm that advises retailers and other shippers on shipping costs.

What happens with the increase of shipping costs by UPS, and even Fedex, is based on certain factors, which determines the types of freight that will go up the most. In the case with UPS, the price increase will actually affect lighter shipments more than heavier shipments. Both UPS and Fedex divide up their shipping destinations into zones and than bases the shipment rates on where the freight is going. For example, a shipper’s home zone traveling two zones over is shipping to Zone 3. Along with the weight classification, they both determine the overall shipment rate. The higher the combined weight and distance, the more the customer will pay.

With this in mind and the rate increase, e-retailers which ship packages that are ten pounds or less, will feel the hike in price by UPS the most. Ken Wood gave an example in the report of how a three-pound package to a zone seven will increase by 7.84%. This equates to a jump from $8.55 to $9.22. In contrast, to ship a 130-pount package to zone 5, will only go up by 2.61%, which equates to an increase from $65.01 to $66.71. For one small package for an e-retailer this doesn’t seem like much, however, when you calculate this in terms of high volume, it is a bit of an increase.

With the rate increase by UPS, many e-retailers will probably seek out new shipping strategies and concepts to get their products in the hands of their customers. Business trends are definitely changing as it relates to e-commerce. Customers are even wanting their packages faster, which has opened the door wide open for same-day delivery. This is the direction a number of e-retailers have turned to as another delivery solution. Large retailers such as Wal-Mart, eBay, Amazon, Macy’s, Target, and more, have all begun to engage in same-day delivery.

For long distances, UPS will probably be what e-retailers will have to continue to go with. However, the creation of closer fulfillment centers and shipping from physical retail stores, creates the viable option for same-day delivery to work. E-retailers can turn to a Same-Day Courier such as A1Express and have their online products delivered locally in a matter of hours. The Kansas City Courier has a national footprint as well, enabling it to assist e-retailers locally on a national scale.

Reference: 11.25.13, Internet Retailer, Paul Demery, Average UPS rates will go up 4.9% in 2014

Retailers Offer The Right Formula For Same-Day Delivery

Many retailers are in the race for same-day delivery. It is a service that has emerged as the key to unlock success in the online retail industry and growth for brick-and-mortar retailers as well. EBay, Amazon, Google, Target, Wal-Mart, and even the USPS, have all implemented some form of same-day delivery. These well-known retailers and more, are all seeking the right formula for same-day delivery to work.

The New York Times recently reported that retailers are warring regarding same-day delivery and who will make it to the last mile. The article discusses several e-retailers and the formula they are using to win the same-day delivery race. EBay uses its' bike riders, or "valets", to make deliveries within "about an hour", for a $5 fee with a minimum $25 purchase. EBay is planning to waive its' $5 delivery fee between Dec. 21 through Dec. 24 and will extend its' service hours between Dec. 16 through Dec. 23. The retailer is also planning to expand into 25 more US cities.

“One thing Amazon has done very successfully,” Ms. Mulpuru said, “is they’ve owned the entire value chain. They’ve owned the last mile, the moment that matters. That moment is when the package arrives.” She concluded: “Once you can own the moment that matters, you build a loyal customer base.” This was said about Amazon, which has its' on take on how to make same-day delivery successful. Amazon has 40 order fulfillment centers strategically placed all over the US, which cover a total of 80 million square feet of an enormous amount of products. At first Amazon spoke lightly about same-day delivery. However, now the retail giant is offering the service in 11 major US cities. It is highly probable Amazon will continue to expand.

There are other retailers looking for the right formula as well. New start-up Postmates, currently offers same-day delivery in New York, San Francisco and Seattle. Its' formula is utilizing 100 to 200 couriers per week to deliver for them. What is different about Postmates is the retailer has created "surge pricing". When demand for deliveries is higher than the supply of couriers to the point its' couriers are limited, Postmates will charge a higher price to service to its' customers.

Deliv's formula is a crowdsourcing approach. This involves using everyday people, from students to real estate agents, with time on their hands to engage in fast same-day delivery. Now, Kozmo, one of the first online retailers that tried to crack the code on same-day deliver years ago, but failed, is hinting at making another run at it. On the retailers' website, it reads, “Remember us? We’re relaunching soon with the vision to fulfill your online order incredibly fast, and on-demand.” It appears with so many retailers seeking to provide the service, Kozmo feels the time is right to try again, yet will their formula work?

There are a number of directions a retailer can approach same-day delivery, yet ultimately the actual delivery will have to be done on time. A viable option is for a retailer to partner with a Same-Day Courier like A-1 Express to not only perform on-time deliveries, but also help them develop the right formula for same-day delivery to work. This San Francisco Courier has the expertise to quickly implement a courier logistics solution and has the national footprint to help even the largest of retailers thrive using same-day delivery.

Reference: 11.23.13, New York Times, Hilary Stout, In War for Same-Day Delivery, Racing Madly to Go Last Mile

Online Retailers Making Aggressive Promotions For Holidays, Even Same-Day Delivery

With the holiday season at full swing, many online retailers are at the starting line and ready to bid the shoppers to come there way. They are pulling out all the stops to get consumers to not only visit their website, but to actually make a purchase. The latest numbers show that the web traffic is there. The key is going to be advertising and promotions.

It has just been reported by content delivery network Akamai Technologies, that consumers are viewing close to 35% more pages on average of retail web sites than this time last year. Akamai’s has provided the figures via its’ Net Usage Index, which calculates the number of retail pages that are being viewed on an average day. It measures millions of page views per minute for hundreds of companies that Akamai serves content for.

The tech company also started tracking web traffic via mobile devices this year as well. 30% of retail traffic so far, is coming from mobile devices. With the increase of technology use and the comfort level using it, consumers are now conveniently shopping from their mobile devices wherever they are. Shoppers are making their purchases from their mobile devices, but also browsing for the latest retail store deals, in which they will simply go and buy it. Some retailers are offering same-day delivery as well.

With the immediate access from web use and mobile devices, the retailer that positions itself to advertise the right deal for the right price will probably come out on top. Many retailers are frequently updating their product inventory to attract online shoppers. The report stated that Sears Holdings Corp. currently has updated pricing on 80% of its’ online inventory. Amazon and Wal-Mart have updated 40% of their online catalogs in the last two weeks.

Therefore, this is where the aggressive promotions are weighing in. In November, Amazon started releasing new Black Friday deals every 10 minutes. The online retail giant already has low prices, yet this is yet another promotion to capture the attention of more shoppers. Sears also began promoting Black Friday deals. Wal-Mart promoted other Black Friday deals on Thanksgiving. CVS launched their online deals for the holidays starting on Thanksgiving also. Retailers know that the days of the shopping season are even going to be shorter this year, therefore, it is a must to take advantage of this first holiday shopping week.

A great statistic from PriceGrabber in the article showed from one of its’ surveys that 72% of shoppers believe they will receive better discounts during the Thanksgiving shopping week than throughout the remainder of the holiday season. There is no question retailers are being aggressive with promotions right now. E-Retailers can also attract shoppers by offering same-day delivery of their online purchases. A Same-Day Courier like 1-800 Courier can partner with any retailer and deliver fast, even from local retail stores. This Chicago Courier has the courier expertise to quickly implement same-day delivery for retailers during the holiday season.

Reference: 11.25.13, Internet Retailer, Amy Dusto, Holiday shoppers flock to retail web sites