Will Same-Day Delivery Survive This Time?

Same-day delivery is really the talk of the e-retail world right now. You will not find any of the big name retailers conducting any business online without some form of the service. Whether it is Wal-Mart, eBay, Amazon, Target, and more, these companies are making huge investments into making the service thrive. However, even with all of the trending and uproar, some experts are wondering will it work this time?

MIT Technology Review wrote a report questioning whether same-day courier services will succeed and examined some of the retailers new services out there to see if it will make it. Google’s new same-day delivery service is called Google Shopping Express. With this service, you can really buy anything, from gum to a phone charger, and have it delivered to your front door for $5. Google and others usually launch same-day delivery in the San Francisco Bay Area because it has the right ingredients for the service. With all of the e-retail companies offering same-day delivery, the question is why are they pushing for this service now?

When the internet first began to grow, there were companies like WebVan and Kozmo.com, which put a lot of money into same-day delivery as well. These companies were hoping that online sales were going to grow rapidly and make the service sustainable, yet it did not. This could prove to be quite different right now since the consumer environment has changed. This is especially true because of increased usage of technology, such as smartphones, ipad, iphones, tablets, and more. This is not to mention the US population is becoming more centralized, meaning there is more time being spent at home.

Jeremy Levine, a venture capitalist at Bessemer Venture Partners, stated in the report, “Everything in retail revolves on price and availability. Price is price, and availability is a measure of how fast I get it after I click on my phone. A lot of the big guys are trying to crack that code.” Currently, online sales in the US are at $262 billion. The growth shows no signs of slowing down either. This is another reason retail giants are acting swiftly, seeking to be innovative and offer some form of same-day delivery.

Google's Shopping Express charges $5 for each store a customer order from and delivers within 2 hours. eBay has their same-day service with a $25 minimum purchase. It's service is currently available in New York, San Francisco and Chicago. EBay plans on expanding the service to 25 more US cities as well. Online leader Amazon offers Amazon Fresh, its' same-day grocery service in Seattle, and now in the Los Angeles area. This service is actually free for orders over $35. Regarding packages, Amazon created Amazon Lockers, which consist of a customer having their online orders shipped to their nearest locker location and picked up from there at their convenience.

The best option for online retailers to go with is to partner with a same-day courier like A-1 Express to perform the deliveries. A-1 Express has a national footprint and can prove to be exactly what online retailers are looking for to make same-day delivery work. The San Francisco Courier has the courier expertise to create an optimal delivery solution and can provide quick implementation as well. As e-commerce grows continues to grow in the coming years, we will see if same-day delivery will survives.

Reference: 11.14.13, MIT Technology Review, Rachel Metz, Can Same-Day Delivery Succeed This Time?

German Logistics Firm DPD Joins In, Launches Same-Day Delivery

Other countries have companies that are in hot pursuit of same-day delivery. It’s not hard to think of as we consider what is happening in our own. In the US, retailers such as Wal-Mart, Amazon, Google, eBay and others are racing to offer same-day courier services to their customers. London-based delivery company Shutl, was just bought by eBay, as the retail giant strives to service the UK more effectively online. Yet, the same is happening with logistics companies abroad.

Reuters recently reported that German logistics firm DPD has announced it will be launching same-day delivery in 19 different German cities. DPD will be partnering with courier service Tiramizoo to bring the highly sought-after service to pass in those areas. This is quite a move by DPD, yet is shows just how much same-day delivery has captured the attention of the world. DPD did not state the timeframe in which same-day delivery will be implemented in the cities, however, with so much opportunity regarding online business and competition growing globally, it will probably move fast.

The main driver for the logistics firm stepping into the same-day delivery game is to give brick-and-mortar retailers a way to compete with dominating online retailers, such as Amazon. Boris Winkelmann, chief operating office of PDP, stated in the report, “This service will help traditional retailers which are going into e-commerce to differentiate themselves from pure online players. This service allows them to generate an advantage from their store network". Physical retail stores have to create a way to compete. Otherwise, online retailers will continue to take market share and expand. Business trends and technology is changing, therefore, retailers must change along with it or get left behind.

DPD now has 20% of the stake holding in the Tiramizoo. The same-day courier already delivers goods for German online retailer Conrad and testing delivery of electronics for Metro’s Media Market electronics chain. Instead of DPD taking on creating same-day delivery, they decided to invest in a courier that already knows what they are doing, which creates a platform for quick implementation. Other delivery companies have begun same-day delivery, such as Fed Ex and the US Postal Service. This shows that the direction of technology is shaping a business world where time can be maximized and speed of deliveries means being a step ahead of the competition.

The logistics firm does expect for the same-day delivery service to be used for more expensive goods, such as electronics and high-end fashion. The cost to provide the service will begin at an additional 8.50 Euros, which equates to $11.50. The price is different from what Germans are used to said Winkelmann in the report. They are used to delivery being free. Although this is changing, DPD foresees it will be successful. More brick-and-mortar retailers will probably jump on board in Germany and partner with DPD to grow their e-commerce business segment. Many companies in the US have made different moves to get their e-commerce business to grow, such as Target and Best Buy working with eBay to have their products delivered from physical stores.

DPD recognizes that online business is the direction the business world is headed toward. As a logistics company, DPD is in a position to partner with retail companies and help them. Retailers in the US can partner with a Same-Day Courier like A-1 Express and implement same-day delivery nationwide as well. This New York Courier is an expert at same-day delivery and can create a logistics solution to meet a retailer’s online demand. A-1 Express can quickly implement same-day delivery and help physical retailers compete, especially in the upcoming holiday season.

Reference: 11.7.13, Reuters, German logistics firm DPD launches same-day delivery

Amazon announced a new partnership with The United States Postal Service

Forget about the seventh day for rest; the seventh day is now for shopping!

“We are moving toward a society where e-mail and social media have caused the week and weekend to blur,” said Jonathan Gruber, a professor of economics and labor at MIT.

Amazon announced a new partnership with The United States Postal Service today. The USP will now be making Sunday deliveries for the web based company on Sundays starting in New York and Los Angeles with other cities to follow. “We’re excited about the potential of the rapidly growing e-commerce market and what it means for the Postal Service,” declared Fredric Rolando, president of the National Association of Letter Carriers.  

This partnership comes at a fortuitous time for both organizations. With the holiday shopping season being six days shorter this year than last due to the calendar, the online retailer hopes to provide a relevant convenience for customers, while The USPS, who announced earlier in the year they were cutting Saturday mail deliveries in many areas, hopes to simply keep their doors open.

Amazon’s new partnership not only will keep them relevant during the increasingly competitive holiday shopping season, the company’s new Sunday shipping agreement is predicted to gain sales throughout the rest of the fiscal year as well. According to Amazon, customers who opt for Amazon Prime, their $79 a year subscription service that offers free 2-day shopping, video streaming, and more, buy twice as much as those who don’t. Because Amazon can now have a consumer’s products shipped to their home before they would ever have a chance to make it to the store during a regular week, Amazon intends to see an increase in overall sales with a particular increase in Amazon Prime sales.

While this new deal is mutually beneficial for Amazon and The USPS, it also opens the door for other companies to partner with courier services to offer this type of convenient delivery. One such courier service company that already has many partnerships country-wide is A1Express. The San Jose Courier can help companies and consumers ensure their e-commerce deliveries are made quickly to the front door.

Wal-Mart Start Thanksgiving Deals At 6 p.m., Will Retailer Offer Same-Day Delivery?

As the economy shows signs of getting better, retailers are very hopeful that shoppers are going to come out this year and do a lot of spending. With the holiday shopping season officially beginning on Thanksgiving, retailers are gearing up to make their big push for advertising sales. In fact, many retailers are doing a number of creative business strategies for the holiday season and they are not holding back any punches to their competitors. Wal-Mart is the largest retailer in the world and has made a move the company has never made for shoppers on Thanksgiving—until now.

Wal-Mart has announced it will open their doors at 6 p.m. on Thanksgiving Day, which is the earliest the retail giant has opened on Thanksgiving. This is two hours earlier than the retailer opened in 2012. Wal-Mart is releasing this announcement with over two weeks away from Thanksgiving. Its’ competitors are watching and probably will have to adjust their Thanksgiving and Black Friday schedules to draw shoppers. Whether this will be a trend to follow for its’ competitors remains to be seen.

During the Thanksgiving Sale, Wal-Mart is going to be offering door buster deals and slashing prices on popular items. Shoppers will be able to find deep discounts on tablets, home appliances, TV’s, and toys, yet only at specific times on Thanksgiving and Black Friday. Some of the popular items for sale will be the Funai 32-inch HD TV for $98, the Apple 16 GB Wi-Fi Enabled iPad mini for $299 with a $100 Wal-Mart gift card, an HP Pavillion TouchSmart Laptop for only $278, and much more. Wal-Mart’s chief merchandising officer Duncan MacNaughton stated in the report that Wal-Mart promises to have 65% more TV’s and double the amount of tablets in stock than last year.

Customers that arrive early on Thanksgiving Day will not have wait in line. Early customers will be given wristbands upon arrival, and they will be able to browse the store until the sale begins. The sales are being done in phases and once Wal-Mart begins the phase for the item, shoppers will have to get back in line to purchase the product they’ve been waiting for. Local store managers will also drop prices on certain categories and brands, which customers can check Wal-Mart’s Facebook Thanksgiving pages for details.

Wal-Mart also has plans for online sales as well beginning Thanksgiving morning. There will be online-only deals offered, such as the iPad 2 for $75 off and the Samsung 40-inch HD TV for $379, which is discounted $50 from its’ regular price. Wal-Mart will give customers the option to order items online, and come in the physical store to pay for it and pick it up. This is another value-added service that is very convenient for the shoppers who desire to avoid the Thanksgiving crowd. Some shoppers would probably even desire for Wal-Mart to offer same-day delivery of online purchases for a premium fee during the holiday shopping season as well.

Same-day delivery is a service that Wal-Mart has implemented in various US cities, yet will the retailer offer the service during this time is a big question. Same-Day Courier like A-1 Express is perfect to partner with because the courier is able to implement a delivery solution quickly. The Chicago Courier works for Wal-Mart or any other e-retailer looking to gain ground during the holiday shopping season.

Reference: 11.12.13, CNN Money, Emily Jane Fox, Wal-Mart Thanksgiving deals start at 6 p.m.

Shoppers Will Use Web For Black Friday, E-Retailers Can Use Same-Day Courier

Another holiday shopping season is upon us and is set to begin after Thanksgiving hits. The anticipated Black Friday kicks it off the holiday season with more than enough deals that shoppers can keep up with. Retailers are gearing up to take on all the consumers that are coming their way. Now, surveys are showing that e-retailers should not only be ready for shoppers at their physical stores, but also over the web.

A recent report by Internet Retailer is showing 35% of adults plan to primarily conduct their Black Friday shopping online. Offers.com performed the survey via lpsos Public Affairs consisting of a poll of 1,018 adults in the US. The coupon company also found that 37% of adults plan on shopping both online and at physical stores. 28% of adults surveyed stated they will only shop for Black Friday at physical stores.

“These trends show positive signs for the continued growth of online consumer activity,” Offers.com CEO Steve Schaffer said in the report. “People don't have to leave Thanksgiving dinner to get to the best sales, and they most certainly don't have to shop in a physical store to get the best Black Friday deals.” 72% of those surveyed will resort to the internet to make some type of purchase during Black Friday. This is definitely no surprise because shoppers are greatly aware of the discounts that are available online.

The survey also found out that overall 53% of adults will shop on Black Friday. With the other survey numbers, combined with online shopping increasing each year by 16%, e-retailers are sure to have big results this holiday season. Many retailers may consider offering same-day delivery to compete online. Retail giants like Wal-Mart, eBay, Google, Macy's, and more have already implemented same-day delivery in preparation for the upcoming online retail sales.

Black Friday and Black Friday weekend can be a good start for e-retailers looking to cash in for the rest of the year. Same-day delivery can be very attractive to online shoppers, especially those seeking to avoid the crowds. A Same-Day Courier like A-1 Express can deliver for e-retailers to their customers fast to their chosen destination. The Memphis Courier can also be an option for e-retailers to perform same-day delivery directly from their retail store locations. A-1 Express can be listed as a delivery option on a retailer's website, beginning Black Friday and throughout the holiday season to help their sales soar this year.

Reference: 11.8.13, Internet Retailer, Amy Rusto, Most Black Friday shoppers will head to the web