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?

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

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.