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

Projections Say Amazon's Same-Day Delivery To Reach 31% of US Consumers

One thing about Amazon, they are not holding back any punches when it comes to its’ e-retail growth. This is why the company is number one, doing it with power and ease. In recent years, many experts have suggested that Amazon is in the race for more same-day delivery just like every other big retailer, yet it is quietly making its’ moves. However, last year Amazon became quite outspoken about its’ plans involving same-day delivery. Amazon CEO Jeff Bezos discussed at that time, same-day delivery via drones. This was a huge statement and Bezos meant all of it.

That alone let the world know just how serious Amazon has been about getting its’ products in the hands of its’ consumers fast. Now, a recent projection shows that the retail giant will be able to provide same-day delivery to 31% of its’ customers by 2015. The projection comes from global supply chain and logistics consulting firm MWPVL. President and CEO Marc Wulfraat released the projections. At a Wells Fargo Securities webinar, Marc stated, “The concept of same-day delivery is quickly becoming a competitive requirement rather than a nice-to-have service in key markets such as Los Angeles, San Francisco and New York, where people are willing to pay a premium for this service”.

He also added that he felt Amazon wants to offer same-day delivery in the top 40 North American cities by population and that would give about half of US consumers access to same-day delivery. Amazon has not commented on the MWPVL projections, but they do make a lot of sense. Amazon’s Local Express same-day delivery program currently operates in 11 cities and metropolitan areas. Those cities include New York, Chicago, Boston, Philadelphia, Las Vegas, Washington, D.C., Phoenix, Seattle, Baltimore, Indianapolis and the metro area of San Bernardino, CA, according to Amazon. These cities give Amazon access to 21% of the US population. Therefore, it appears with simply more growth, the reach will expand to 31%.

Earlier this week, Bezos released his annual shareholder letter, in which he promised more “innovation” in fast deliveries, including the use of drones. The letter also said Amazon’s plan to expand Sunday deliveries “to a large portion of the US population” this year. He did not mention specifically same-day delivery. Amazon partnered with the US Postal Service in November of last year to launch Sunday delivery in New York City and Los Angeles. With the physical assets of the USPS and its’ need for revenue, this relationship will probably expand.

Amazon states it operates over 40 US distribution centers. This is what will be one of the major keys for Amazon to successfully offer the fast delivers that its’ after. Same-day couriers like A-1 Express can become a partner with Amazon to make their same-day delivery plans a reality. This San Francisco Courier has a national footprint and can help Amazon expand its’ current Amazon’s Local Express same-day delivery program quickly. There’s nothing like partnering with a company like A-1 Express, which is an expert in same-day delivery. A-1 Express can also be a great option for fast customer order replacements, delivery errors and returns.

Reference: 4.11.14, Internet Retailer, Thad Reuter, Amazon’s same-day delivery could soon reach 31% of U.S. consumers

Amazon Revamping Delivery Network, Could Turn To Using Same-Day Courier

Amazon knows what it takes to do retail, as it continues to beat the competition online. What the retailer feels it needs improvement in is its’ delivery network. Last year’s Christmas shopping season turned out to be a disaster for the retail giant, as their primary partner UPS failed to deliver on-time, not to mention other deliveries. It became clear that the delivery of the product is just as important as the purchase itself. The buying is the shopper’s part. The delivery is Amazon’s. It wants to make its’ delivery network stronger and Amazon is evaluating how this can get done.

The article covered the grocery and general merchandise delivery options Amazon can choose to implement to get the results it wants. A parcel carrier could work, which could entail the carrier bringing the general merchandise from their sorting location, and combine it with the grocery delivery truck at the Amazon fulfillment center. It would be very challenging to get the delivery done the same-day. Here are some of the quoted changes Amazon stated it will implement to revamp its’ delivery network:

• UPS, who has been the primary carrier, will be replaced by a network of regional carriers.
• The top 40 markets will be served by a private fleet being built by Amazon to support an expansion of its online grocery business” (Amazon Fresh). This means there will be a big expansion from the three metro areas currently served by Amazon Fresh.
• The private fleet network will co-mingle groceries with general merchandise.
• Orders will be routed through Amazon’s 55 fulfillment centers, with deliveries made the same day, the next day or, at most in two days.

The main discussion in the Forbes article was whether utilizing a same-day courier could be the key to the optimal delivery revamping that Amazon is looking for. The advantage of using a courier is a courier specializes in same-day delivery. This is their expertise and they are reliable at doing it. A courier service can transport general merchandise and groceries directly from point-to-point within hours. Same-day delivery is the goal for AmazonFresh, which currently is rolled out in a small number of markets.

The disadvantage of using a courier is primarily the cost. For this type of service, a courier can be expensive. Yet, with a same-day courier like A-1 Express within a market with the right demographics, such as San Francisco, pricing can be lowered and there will be high volume in big cities. It makes sense to use this Los Angeles Courier solely or in conjunction with a private fleet. A courier is also a great source to correct delivery errors, redeliveries and product returns.

Amazon indeed has high expectations and so does its’ customers. Whether groceries or general merchandise, Amazon has to deliver or its’ competitors will. Wal-Mart, for example, has launched a same-day grocery service of its’ own. “WalMarttoGo” not only offers same-day delivery of groceries ordered online, but shoppers can also pick up their order at a local Wal-Mart store. This isn’t an option that Amazon has for its’ shoppers. Amazon’s delivery network has to be effective to compete long-term.

Reference: 3.19.14, Forbes Magazine, Steve Banker, Amazon Revamps Its U.S. Delivery Network

Postal Service Seeking More Profits, Deliver Packages On Sundays And Same-Day Delivery

It is a great time for the Postal Service, as it has begun to see some daylight after the years of losses. The mailing giant only suffered $5 billion in losses last year, which is a big difference from almost $16 billion in 2012. This is due to some major restructuring with the company’s business strategy and it’s working. The Postal Service is now pursuing to shut down Saturday mail deliveries, which will give it even more flexibility to implement other services that generate more revenue.

The Federal Times reported that the Postal Service is now seeking after delivering packages on Sundays. This would mean it will provide package deliveries every day of the week. It is something that the Postal Service has found is being well-received by customers so far, as it currently offers package deliveries in a number of US cities already. Those cities include New York City, Los Angeles, some areas in Texas, and some Mid-Atlantic areas.

The company believes the shift to Sunday service will be pay off, as Postmaster General Patrick Donahoe made the announcement of the company changes at the annual National Postal Forum. He stated at the forum, “That is why we are moving toward the seven day model. It has caught on like wildfire in New York. We have a whole group of customers there”. When the demands and needs of the customer changes, businesses must evaluate their services and change along with them. The Postal Service is making the right changes before the company was going to clearly hit rock bottom.

At the forum, Donahoe also mentioned about the new venture of same-day delivery, which the Postal Service is offering in New York City, which is also known as Metro Post. It has been successful there as well. Same-day delivery is a service that is becoming more popular involving meeting the delivery needs of online customers. Online retail has consistently grown at 16% annually in recent years, as more customers shop and conduct business via mobile devices. Now, there is a huge market for customers that desire their online purchases to arrive at their front door the same-day.

It’s a service source that the Postal Service can have an advantage in long-term. E-retailers like Amazon, eBay, and Wal-Mart have implemented same-day delivery in a number of US cities. However, unlike the Postal Service, none of them have a vast and robust vehicle fleet that can cover the entire country. The other viable option for the e-retailers is to invest in their own delivery fleet or partner with a same-day courier like A-1 Express to perform the deliveries for them. The Charlotte Courier can help online companies with same-day delivery nationwide.

All of these e-retailers show no signs of slowing down, as they continue to make major investments to develop their own effective version of same-day delivery. Amazon and Wal-Mart even provide same-day grocery delivery services in Seattle, Los Angeles, Denver, and more. The Postal Service is currently partnering with Amazon to perform their same-day deliveries in New York and this relationship will probably grow.

Reference: 3.18.14, www.federaltimes.com, Andy Medici, Postal Service pushing package delivery into Sundays

IBM Reports Jump In Mobile Sales, Same-Day Couriers Could Help Growth

The holiday season is the greatest time for retailers to get their sales numbers up, which affects the year-end figures. IBM is just one of the companies that performed what is called a Digital Analytics Benchmark for 2013 and tracks about 800 e-commerce sites in the US. They gathered information for four retailer categories: home good retailers, heath and beauty, department stores, and apparel. The results of findings showed that online retail sales grew 10.3% in comparison to 2012.

IBM found that last year was simply another record-breaking year during the holiday season also. Thanksgiving went up 19.7%, Black Friday went up to 19% and Cyber Monday went up 20.6%. The online sales data from IBM is not provided monthly. Shoppers have become more comfortable will making purchases online, which has taken some time to happen. With the level of growth occurring with mobile sales, it only makes sense that more online retailers will create more innovative ways to do business and deliver products to the customer’s front door.

Online sales have skyrocketed in the recent years, and the growth has been steady. The numbers for the holidays show online retail is being used by more and more customers via mobile devices as well. Mobile sales were reported by IBM to have increased by 46% compared to last year’s 4th quarter. They also accounted for 16.6% of digital sales as well. Large online retailers like eBay and Wal-Mart, have also offered same-day delivery for their products, which can be easily used from mobile devices as well.

What has been key to mobile sales growth has been the use of smartphones and tablets. IBM found that they accounted for 35% of online traffic during the holiday season. This is a huge increase, up 40% from 2012. Smartphones produced double the traffic of tablets, up 21.3%. However, shoppers spent more money on tablets than smartphones, which equated to $118.09 on tablets, versus $104.72 on smartphones. This makes sense being that tablets are much more user-friendly.

The mobile devices primarily used were Apple products. They generated more sales in the fourth quarter than Google’s smartphone and tablet android software. The iPhone and iPad accounted for 22.1% of total web traffic, 12.7% of total online sales and was used by shoppers that spent $115.42 per order. In contrast, Android shoppers accounted for 10.6% of total web traffic, 2.6% of total online sales, and shoppers sent $83.56 per order.

With the way online sales grew last holiday season, retailers are sure to be anticipating an even bigger numbers this year. The key is going to be who will be prepared for it, already setting up the right delivery system to fulfill the online orders. Some online retailers are opting to perform their own deliveries. However, many other retailers are in some fashion partnering with a Same-Day Courier like A-1 Express to make the deliveries for them. One plus about partnering with A-1 Express is the courier service can be a one-stop source for deliveries nationwide and can quickly implement a same-day delivery solution.

Reference: Internet Retailer, Amy Dusto, Online sales rise 10.3% year over year in Q4