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    Friday
    Jun142013

    EBay Launches "Shoppable Window" In New York, Will Use Same-Day Courier For Deliveries

    EBay has been one the largest online retailers for quite some time, competing against Amazon for superiority. The company has been implementing various e-retail business strategies to get ahead, including one-hour same-day delivery within cities on the west coast. Now, eBay has created another service program, however, it will begin in the big apple of New York.

    EBay has announced it will be launching a "shoppable window" in New York this month. These windows are actual virtual stores in which are being set up to generate more sales from their physical store networks. The first four of the screens opened on June 8th and will continue until July 7th. The EBay window will be selling various items from current and new fashion brands. The window has been set up since late last year, however, shoppers were not allowed to make any purchases with the screen. This service window will be set up on the doors outside of closed stores.

    Shoppers will have the ability to go to the shoppable window, place an order and have their products delivered via a same-day courier to their doorstep. Payments for their orders will be accepted by the courier via Ebay-owned PayPal. This will be a very convenient service for customers and will increase the reachability of brick-and-mortar retailers to online shoppers. EBay has continued to partner will store retailers to develop a business model to increase their online sales. Companies such as Target and Macy's are just a few of the companies eBay is implementing the shoppable window business strategy.

    Ebay's shoppable windows are being stated by experts as a platform to shift to mobile shopping. "This extends the boundary of the store. Suddenly the physical store, by virtue of online technology, extends to any space that's interesting to use," said EBay's Head of Innovation and New Ventures Group Steve Yankovich. Their pursuit of mobile shopping could definitely be the case. Recently, eBay announced roll-out of a one-hour same-day delivery service. The service is available via their mobile app--eBay Now. Through eBay Now, shoppers can place on order and have it in their hands within one-hour.

    "We would never be able to fit all those products in a store in the traditional way," Chief Executive William McComb said regarding the shoppable window being used to launch a new fashion brand. He went on stating, "These things would typically require an extra 10,000 square feet of store space. But through partnerships like this eBay one we could do this through stores that are 2,000 square feet".

    EBay utilizing a courier service for the new shoppable window confirms that same-day delivery works. Same-day couriers like A-1 Express can assist any e-retailer to provide various courier innovative solutions to fit excel within the online business industry. A-1 Express has the expertise to develop same-day delivery solution, including fast service and cost savings for its' customers nationwide.

    References: 6.5.13, Reuters, Alistair Barr, EBay to open 'shoppable windows' in New York

    Monday
    Jun102013

    Will Amazon Begin Same-Day Delivery Of Groceries?

    There's no bigger online retailer than Amazon. The online giant has the lead competition for several years with innovative delivery and shipping methods, including Amazon Prime and Amazon Lockers. Its' product line has involved virtually any consumer product you could name and have it shipped quickly to you, with the exception of food on a major scale. However, from recent reports, it appears online groceries will be next on Amazon's list.

    Reuters has reported Amazon will roll out an online grocery business expansion plan, which will incorporate the selling of food with high-margin item deliveries within the same order. Its' grocery business AmazonFresh is not new, but rather has been tested for at least five years in Seattle, its' hometown. Amazon has utilized its' own fleet of trucks to perform deliveries of fresh food products. With the testing of the service, Amazon appears to be ready to expand into Los Angeles this month and also San Francisco later in the year.

    Experts approve of the move forward for the new online grocery business, apparently hailed to be tried and tested by Amazon. "Amazon has been testing this for years and now it's time for them to harvest what they've learned by expanding outside Seattle," said Bishop, chief architect at Brick Meets Click, a consulting firm. He continued, "The fear is that grocery is a loss leader and Amazon will make a profit on sales of other products ordered online at the same time. That's an awesomely scary prospect for the grocery business."

    AmazonFresh will have the warehouse capability to accommodate the big move as well. Amazon will have new warehouses that can store one million general merchandise products, as well as refrigeration areas for food. The online company has no trouble building needed facilities to specific areas of the US to meet their online demand. Amazon has opened 20 distribution centers and 79 fulfillment centers worldwide as of 2013. This is not including an announcement to build three new distribution centers in Texas earlier this year.

    The combination of food and retail products within one order is what will make the difference in making online grocery delivery successful. However, with this being food, the question still remains what effective method of delivery will be used to get these items in hands of online shoppers? It only makes sense that online groceries will require same-day delivery to make it work. Amazon will encounter online grocery chain competitors such as Wal-Mart, which is already testing same-day delivery within San Francisco and other US cities.

    The key for AmazonFresh will be to deliver its' online food products cost effectively on a large scale and fast. Same-day couriers like A-1 Express will be just the right fit for the delivery demands nationwide it will require. The Los Angeles Courier has a national footprint, which will enable Amazon to have one partner for an optimal same-day delivery logistics solution. With its' courier expertise, A-1 Express will be able to provide quick implementation of food deliveries and keep up with ongoing online grocery service growth.

    References: 6.4.13, Reuters.com, Alistair Barr, Amazon plans big expansion of online grocery business: sources

    Thursday
    May302013

    Wall Street Transcript Forecasts Consumer Demand To Increase For Same-Day Delivery

    In recent years, there has been a growing pursuit of same-day delivery by online retailers. E-commerce is currently growing at an annual rate of 16% per year. With the use of mobile devices, such as ipads, smartphones and tablets, many experts forecast online business shows no signs of slowing down. As online growth increases, the option for same-day delivery is increasing as a viable option for online orders.

    According to the Wall Street Transcript, same-day delivery will not only be a viable option, but will become a standard consumer demand within the e-retail industry. It has just published an internet services report, reviewing topics such as increased mobile content traffic, Chinese online monetization trends, internet infrastructure and services consolidation, an social networking economics. The report informs serious investors and industry executives of what is forecasted to come regarding certain sectors. The feature provides interviews with public company CEOs and Equity Analysts regarding the discussed industries.

    Within the report, the companies discussed are online retailers involved in some level of same-day delivery and online shipping. Those included in the report are Amazon, Google, eBay, Nordstrom, Yahoo, and more. Within one of the report excerpts, an expert analyst discusses the outlook of the industry and what is to come for the online retail industry. One question the expert was asked to talk about was the next battle within the e-commerce war. The above mentioned companies are engaged in fulfillment and omnichannel capabilities within e-commerce. With online giants such as Amazon and eBay, the expert also discussed other players in the e-commerce war that will have an impact on the industry in the future.

    Mr. Pitz offers insight on the companies and the impact of same-day delivery. One of his quotes from the report regarding online retailers was he stated, "We believe as companies including Amazon continue to build out their capabilities in same-day delivery, same-day delivery eventually becomes a have-to-have for the average consumer, although that customer may not even know it yet". He mentions same-day delivery will shift into the same scale of demand as two-day shipping, which Amazon launched years ago. Same-day delivery will become a value-added service to consumers.

    He continued on regarding Amazon being a key player, driving the offer of the same-day delivery option to consumers. "So we believe Amazon will continue to raise the bar and provide consumers with the merchandise that they thought they would receive in two days, but actually receive in one day or less", stated Mr. Pitz. Amazon-owned companies such as Quidsi, has brands Soap.com and Diapers.com, which are successfully offering same-day delivery. Amazon also implemented in its' fulfillment centers what is called the Kiva System. This system is used to optimize small package shipments and improves productivity for shipping. With Amazon using this system, the company will continue to create efficiencies and ship faster.

    The direction is clear that same-day delivery is creating a major revolution in the business world and brick-and-mortar stores have to make the shift. Large retailers such as Wal-Mart, Macy's, and Target are testing same-day delivery as well. Same-day courier services like A-1 Express can be partners of Amazon, Wal-Mart, or any other retailer seeking to provide same-day delivery. The Los Angeles Courier has a national footprint and can quickly implement a courier logistics solution for the increase of consumer demand for same-day delivery to come.

    References: 5.21.13, Yahoo News, The Wall Street Transcript, Consumers Expected to Start Demanding Same-Day Delivery Shipping as an Increasing Number of Online Retailers Begin to Offer the Option

    Monday
    May202013

    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

    Monday
    May132013

    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