Snapdeal and dPronto Partner For Same-Day Delivery In India

Big names like Amazon, Google, Macy's, and others come to mind when you think of US retailers that have implemented, and they are gradually expanding Same-Day Delivery in the US. Yet, same-day delivery is not only growing in the US, but worldwide. With a forecasted growth to reach $987 million by 2019 in the US, the marks are even higher globally, which shows why Snapdeal and dPronto have joined in partnership to take e-commerce to another level.

First Post reported that Snapdeal has partnered with dPronto to offer same-day delivery across India. The purpose of the partnership is to enable Snapdeal to reach a larger customer base via the last-mile service. Snapdeal raises $200 mn in fresh funds led by Canada’s Ontario Teachers’ Pension Plan. dPronto’s trained delivery staff will pick up packages from Snapdeal’s sellers or fulfillment centers and then deliver same day to its' customers. Currently, Snapdeal has an on-time success rate of 90% with same day delivery.

DPronto is a last-mile delivery company with a business model niche of working with e-commerce companies (including hyperlocal market places). It provides last mile logistics services for e-commerce companies by leveraging trained fresh manpower supply, disruptive technology and efficient processes that minimize delivery turnaround times and optimize costs. The deliverer's driving staff will be trained to service 600 towns across in India, which will create more jobs in the area.

The report also mentioned how the partnership will help kids in India acquire some of those jobs that will be created. Ashish Chitravanshi, Vice President, Operations at Snapdeal, commented in the article regarding dPronto's initiative. He stated, “dPronto’s initiative of empowering the less privileged youth by making them employable is highly commendable. We are excited to be partnering with them to further strengthen our last mile delivery capabilities as we remain committed to our promise of catering to every customer in every pin code.”

More and more companies are after same-day delivery. Even UPS appears to be making strides to dive offering it. The carrier giant has made a strategic business investment into start-up company Deliv to study the same-day delivery model and see how that market is evolving. The Strategic Enterprise Fund, UPS's venture arm, is leading a $28 million funding round for the Palo Alto, California-based Deliv. With UPS being a global shipper, and the growth of same-day delivery, it makes sense for the company to finally position itself to be able to offer last-mile deliveries, as well as being able to partner with businesses that demand it.

Several companies are partnering with a Same-Day Courier like A-1 Express to enter the same-day delivery market and get their e-commerce synchronized with today's business trends. The Chicago Courier has the courier footprint to cover same-day services nationwide and the technology infrastructure needed to develop efficient delivery solutions.

Reference: 3.3.16, www.firstpost.com, FP Staff, Snapdeal partners with dPronto to expand its customer base for same day delivery

More Free Same-Day Delivery For Amazon In Chicago

It's amazing to see the growth of Amazon implementing same-day delivery programs in most of the major US cities already with more to come. What makes its' service so competitive is that it is for free. Other well-known retailers, be it web-based or brick-and-mortar, have their various fees for their services. However, its' going to take some ingenuity to topple Amazon.

The Chicago Tribune recently announced that Amazon expanded its' free same-day delivery service into Chicago and Orlando last week, adding to the already 14 same-day markets in the US. Those cities include San Francisco Bay Area, Seattle-Tacoma, San Diego, Phoenix, Baltimore, Boston, Dallas-Fort Worth, Indianapolis, New York, Philadelphia, Tampa Bay, Washington DC, and Atlanta. Making the service free began in 14 Los Angeles metropolitan cities earlier this year and the other cities will probably follow.

A spokeswoman stated in the article that the free same-day delivery in Chicago will extend north to Evanston and Arlington Heights, south to Oak Lawn and west to Glen Ellyn and Downers Grove. This will be a big move and makes sense for Amazon being that Chicago is a popular city for holiday shopping. The coverage area for Orlando was not mentioned.

Same-day delivery will be free for all prime member orders placed over $35. Although Amazon's online Prime catalog offers 20 million items for shoppers, the current free service only includes 1 million of them. Time will tell, yet more than likely, this will grow the more and more established the service gets. All orders placed by 12 noon, will be delivered by 9pm the same day. All orders placed after 12 noon, will be delivered the following day.

The fulfillment centers for Amazon have been the key for its' growth, which act as localized warehousing in order to generate fast deliveries. This is the same model for big name physical store retailers that are competing against Amazon. For example, department store leader Macy's launched same-day delivery starting last year and fulfilled its' online orders from actual store locations. In that regard, delivering same day is very viable.

As Macy's jumped into same-day delivery, Kohl's decided this year to dive in head first as well. It recently added six more major US cities to its' same-day delivery list, which included Los Angeles, Boston, Brooklyn/Queens, Northern New Jersey, Philadelphia, and Miami. Kohl's was already offering same-day delivery in Chicago, as well as in San Francisco and in the Bay Area. Therefore, the retailer is gearing more towards providing same-day delivery in as many feasible US cities as possible for the upcoming holiday season.

Online shopping continually increases every year and retailers know it. During the biggest shopping season of the year, e-commerce sales are expected to increase 13.9% in November and December, and an overall increase of 5.6% during the same time frame. To keep up with Google, Amazon and more, A lot of retailers are partnering with a Same-Day Courier like A-1 Express in order to offer same-day delivery too. The Chicago Courier supplies the same-day logistics solutions and the driver delivery expertise, performing the actual service too.

Reference: 10.21.15, www.chicagotribune.com, Meg Graham, Amazon brings free same-day delivery to Chicago

Forrester Says Retailers Have Hurdles with In-Store Pickup Services

It's clear that shoppers want convenience and pick up of online purchases at physical stores meets demand. However, will it profit retailers? Internet Retailer recently reported about this challenge, highlighting Forrester Research analyst Brendan Witcher's "Nailing In-Store Pickup". Over 53% of the more than 3,000 online U.S. adults surveyed stated they expect notification in two hours or less that orders are ready for pickup and those expectations are likely set by some retailers’ aggressive promises. An example mentioned is how Best Buy Canada guarantees orders placed online will be ready for in-store pickup within 20 minutes.

This means retailers have to be very efficient operationally. This will directly reflect all repeat customer ratios as well. To be as efficient as demanded, in-store pickup requires merchants to have up-to-the-moment inventory data, sufficient store staff and a designated pick up areas, which must have oversight. Witcher stated retailers should not offer all products stocked in their stores for pickup because some are too taxing on the store to manage in a timely fashion, like bulk appliances. They also are in high demand and affects actual guaranteed inventory. Witcher also says whether a product is available should be called out on product description or product listing pages.

These are all customer expectations that they stated will rise in the future, which are valid. Another aspect of the survey polled 70% mentioned they mostly use online pick-up to avoid shipping costs. Other reasons in the survey included convenience, to ensure the product is available and reserved for the shopper, to get the product the same day and to avoid taking the time to find a product in the store. Interesting enough, retailers are offering online customers the ability to get their items the same day via numerous same-day delivery programs through a nationwide courier or other partner.

Online retail is on pace for nearly an estimated $500 billion in growth by 2018, which is over $200 billion more than sales last year. Web-based and brick-and-mortar retailers are on track innovating faster shipping options for shoppers. A number of big names have also implemented same-day delivery options for shoppers to meet convenience demands that attract consumers. Macy's is a department store example, aggressively launching the service in 8 major US cities, including Los Angeles, San Jose, Houston, San Francisco, Seattle, Washington DC, New Jersey, and Chicago. Sister company Bloomingdale's launched the same-day delivery in some cities also.

Low prices for same-day delivery is a key component and many retailers have roughly the same model. Some use a same-day courier like A-1 Express to handle performing deliveries. The Chicago courier can partner nationwide also. Macy's charges a flat rate of $5 for orders over $99, and shoppers with smaller orders pay standard shipping rates plus $5. Amazon Prime Now is only $5 for bike messenger service in New York. Amazon offer Prime members in other same-day cities for $5.99. Non-Prime members pay $9.99 for the first item and $.99 cents for each additional item. Google Express charges $4.99 per order or customers can pay $10 per month and $95 annually.

Reference: 1.6.15, Internet Retailer, Allison Enright, While shoppers like in-store pickup, it is tough for retailers to do well

Will Deliv Win Out In Same-Day Delivery?

With all of the hype regarding Google, Amazon and eBay, it's tough for shoppers and retailers to hear news of an underdog like Deliv with its' crowd-sourcing approach to win out in same-day delivery. The Washington Post recently discussed how Deliv could become the frontrunner in the last-minute delivery race.

Deliv's founder and CEO Daphne Carmeli started the company in 2012 with a different core objective than her predecessors like Kozmo and Webvan. Her take on what should be driving what shoppers want may even be in contrast to Google and Amazon. “The market opportunity for same-day delivery has very little to do with meeting the needs of people who want things fast,” Carmeli said. Others in the same-day delivery race are indeed after making the service cheap, hence attractive to shoppers. From Carmeli's standpoint, customization is what will ultimately attract and keep shoppers.

She touted in the article that shoppers desire flexibility and predictability. A shopper can have their items delivered within a two-hour window between their haircut and their kid's soccer game. Also, its' for shoppers who have to change their delivery time for whatever reason and Deliv gets it done. This is definitely a high level of service, even the type of first-class service that a hotel provides its' guests. If it is built right, it is a service that shoppers will pay for, especially if the service is inexpensive.

Currently, Deliv is making a lot of head way relative to growth within its' primarily partner markets. Deliv has amassed 250 retail partners, including Macy's, Foot Locker, Brooks Brothers and Neiman Marcus. It also has expanded to 8 metropolitan areas throughout the US. When Carmeli first began conceptualizing Deliv, she found that the majority of the stores of the top 200 retailers were in malls. “I can walk around Disneyland, buy stuff, and have it show up at my hotel. Why can’t I do that at the mall?”, Carmeli told mall owner and Macerich operator Art Coppola.

To Coppola, it makes sense for malls to get on board. Shoppers don't have to be concerned with totting heavy bags around the mall all day. If the customer lives in one of Deliv's service zones, for a $5 fee, they can have Deliv transport those bags to the front door of their home while they stay at the mall. Macerich vice president Kurt Ivey stated in the article, “we are not making money on this. We are not trying to generate revenue, we are trying to enhance the [shopping] experience.” Ivey mentioned this service keeps the shopper at the mall, instead of going to their cars to drop off their bags, because many shoppers don't come back afterwards.

Deliv could have a same-day delivery system that works, however, one downside is the company has no control of merchandise pricing. Pricing is totally set by the retailer. Also, what if the retailer decides to offer same-day delivery itself like Wal-Mart. Retailers can partner with a same-day courier like A-1 Express and offer the same level of service, even for item returns. The Chicago courier also has a national footprint, which is ideal for mall retail chains to have a one-stop source for all of their locations.

Reference: 12.12.14, Washington Post, Sarah Halzack, Will the same-day delivery war be won by a competitor you’ve never heard of?

EBay's App For Same-Day Gone, Could Other Retailers Fail?

There is no doubt that there is something huge behind same-day delivery, because if there was not, there wouldn't be so many consistent investments by big name retailers into it. EBay is one of the e-retailers that was hoping to strike gold with the service, pushing to make eBay Now work. However, it appears the results eBay was hoping for didn't materialize, leaving eBay to pull altogether the eBay App last week.

EBay's retooling of its' same-day delivery program is the reality that even with a high profile, heavy investments and resources, if all of the pieces of puzzle aren't there, the service will not work. No matter how much marketing and advertising is done, the costs involved with same-day delivery is what will ultimately impact the success of a company. EBay had all the components, but it came to the point where it was about the ability to grow it, versus just the establishment of it alone.

The well-known web-based retailer launched its' service in 2012 in San Francisco and grew. EBay had plans to expand into 25 other cities this year, especially after its' acquisition of delivery company Shutl. This would be eBay's link into utilizing independent couriers to perform same-day delivery for it. Therefore, a same-day courier like A-1 Express would become a partner for eBay to outsource to, depending upon the location of the service request. This happened after eBay Now showed signs of a downward spiral when the independent valets no longer were being used. The Shutl idea was set in place to reduce the delivery costs of eBay transporting itself.

Even with all of the shifts, eBay Now just didn't have the order volume to sustain itself. The question is will this happen to other retailers? EBay was charging $5 for the service, which is what many other high profile retailers are charging right now. One of the latest top retailers Macy's has joined the ranks, completely diving into same-day delivery right before the holiday shopping season began.

Formerly partnered with eBay, Macy's has now rolled out same-day delivery in Houston, Los Angeles, San Francisco, San Jose, Chicago, Washington DC, New Jersey, and Seattle. Sister company Bloomingdale's rolled out the service Los Angeles, San Francisco, San Jose, and Chicago also. From Monday through Saturday, orders placed with Macy's by 1 pm, are delivered the same day within a selected two-hour delivery window option. Orders must be placed by 11 am on Sundays.

Macy’s charge for its' service is $5 bucks as well. Experts think Macy's will work, especially with its' volume of locations to keep down delivery costs. Wal-Mart is in the same boat also, yet charges $10 for its' service, regardless of order size. Amazon offer its' Prime members same-day delivery for $5.99. Google Express charges $4.99 per order or customers can pay $10 per month and $95 per year, which has a source of partnering with physical retailers for its' same-day service. Other retailers failing with same-day delivery is yet to be seen, however, A-1 Express is a viable option for retailers to save on delivery costs. The Chicago courier is a source nationwide for same-day delivery and has the logistical expertise to help any retailer thrive.

Reference: 12.4.14, The Motley Fool, Rich Duprey, Same-Day Delivery Application Killed Off by eBay: Who Fails Next?