Senate May End Tax-Free Online Shopping, Lower Costs With A Same-Day Courier

Online shopping is growing at a very fast pace. From mobile phones to ipads, people have become more comfortable with shopping online in the recent years. There are a number of issues that have risen regarding online business and one of those is online sales tax.

Currently, states collect sales taxes only if the e-retailer has a physical store within that particular state. However, based on the beginning debate regarding the issue, this could very well change. Yahoo News reported an online sales tax debate has started this week, after the Senate passed a test vote yesterday. The Senate passed the test bill by a wide margin of 74 to 20. With this level of support continuing, the real bill could actually pass as early as this week.

Instead of online sales being tax-free for online retailers and having an advantage over brick-and-mortar stores, supporters feel it will level the playing field. "I believe it is important to level the playing field for all retailers," said Senator Mike Enzi, Republican of Wyoming, who sponsored the bill. "We should not be subsidizing some taxpayers at the expense of others." It will generate lost revenue on the state level. Also, President Obama supports the bill as well.

Opposers of the bill feel it will impose complicated regulations on retailers. EBay is one of them. To rally opposition to the bill, EBay president and CEO stated, "I hope you agree that imposing unnecessary tax burdens on small online businesses is a bad idea. Join us in letting your Members of Congress know they should protect small online businesses, not potentially put them out of business." Others in opposition are Senators representing states that have no sales tax.

EBay wasn't the the only online giant mentioned in the report. Amazon also weighed in and is in favor of the bill. "Amazon.com has long supported a simplified nationwide approach that is evenhandedly applied and applicable to all but the smallest volume sellers," Paul Misener, Amazon's vice president of global public policy wrote in a letter to senators. The bill will ultimately bring more revenue to the states in which the shopper lives in. Businesses that make less than $1 million per year will be exempt for the bill.

Whether the bill to end online tax-free shopping passes or not, e-retailers will need to continue to seek for ways to manage their costs. One way is using same-day delivery. Same-day courier services like A-1 Express are a viable option keep their shipping costs down, in the event online sales taxes do increase. This Dallas courier can perform same-day deliveries at a lower cost because of route optimization and transportation expertise. A-1 Express can create a courier logistics solution specific for any online retailer's same-day delivery needs.

Reference: 4.22.13., YahooNews, Stephen Ohlemacher, Senate bill jeopardizes tax-free online shopping

Boston Consulting Group Surveys Same-Day Delivery, Will It Make It?

Same-day delivery has been in hot pursuit for a number of large corporations and businesses over recent years. With an average annual growth of online sales of 16%, it is no wonder why companies are seeking to create a competitive advantage and provide a faster delivery service to meet online demand. However, some are asking will same-day delivery last or will it be merely a trend?

Yahoo News reported The Boston Consulting Group conducted a survey of 1,500 consumers regarding shopping online. One question asked is what would attract them to shop more online. Only 9% of the consumers stated same-day delivery would inspire them. More than 75% of those surveyed stated free delivery would persuade them to shop online. Lastly, 50% of them stated lower prices would be the trigger needed for them to conduct online purchasing.

The survey also provided insight into what consumers would be willing to pay for same-day service. Consumers said they would pay an average of $7.50 to receive a $50 purchase delivered via same-day delivery. The important comparison with this fact is that this amount is lower than what retailers, e-retailers and online companies are currently charging for this level of service. Therefore, the cost issue must be resolved if same-day delivery will last.

The survey shows concerns on whether it will be profitable. In the report, the Urban Americans between the ages of 18-34, with a household income of $150,000, only account for 2% of those that will buy into same-day delivery. This means demand is a great concern. "The demand for this service and the willingness to pay do not match the cost of providing it," said Boston Consulting Group partner Rob Souza.

Many large companies have already been providing and competing relative to same-day delivery. With companies such as Wal-Mart, eBay, Macy's, Target, and more in the race for making deliveries the same day, it causes many to suspect same-day delivery must be profitable. eBay created a same-day service called eBay Now. The online giant began testing same-day delivery in San Francisco and they now provide the service in several areas. They now have same-day delivery in Brooklyn and Manhattan, New York. Delivery is $5 per order, with a minimum order of $25. Also, same-day delivery may result in the shopping advantages consumers want.

Experts even think Amazon could be after same-day delivery with the continual building of distribution centers throughout the US. Amazon's recent announcement is it will be building three new distribution centers in Texas. There will be two Dallas-Fort Worth distribution centers, which will be a 1 million-square foot site in Coppell, TX and the distribution center in Haslet, TX will be 1.1 million square foot. Another will be in San Antonio, located in Schertz, TX, which will specialize in handling large items. Amazon has opened 20 distribution centers and 79 fulfillment centers worldwide.

Many investments are being made to make same-day delivery successful. Same-day courier services like A-1 Express can assist any business develop a successful same-day delivery solution. This Cleveland courier is able to pick up anything from small packages to palletized freight fast! A-1 Express is an experienced, professional courier servicing over 1,500 clients, including Fortune 500 companies. A-1 Express is a viable option for large retail corporations to partner with and help same-day delivery last.

References: 2.5.13, YahooNews, Alistair Barr, E-tailers embrace same-day delivery, but U.S. shoppers shrug: survey

Nintendo Wii U Pre-Orders Sell Out, Companies Have To Meet Online Deliveries

Expects are predicting online shopping will go up this year. As companies gear up for this year's holiday season, technology is leading the pack. Online pre-orders have been selling out for some top tech gadgets this September.

Two of the most anticipated technology products have been the iPhone 5 and the Nintendo Wii. YahooNews recently reported Nintendo's joined the likes of Apple this month, selling out of their online pre-orders. Target, Best Buy, Toys R Us, Sears, and KMart were among the list of major retailers that have ended all pre-orders. Nintendo released their announcement last week, and customers are set to receive their new Wii's on November 18th, right before Thanksgiving arrives. The console will also be available in physical stores that day as well.

The Apple iPhone 5 was reported to have sold out of 2 million units for pre-order in the first 24 hours of their release date. With the demand for the new phone still at a strong pace, Apple has now had to inform some customers they would not receive their iPhone 5 for another 3-4 weeks. With the powerful effects of just one technology advancement such as the iPhone, shopping is being revolutionized before our very eyes. The use of the new iPhone 5 to make purchases via online for the coming holiday season this year is sure to follow.

The online orders prove that e-commerce is becoming an even stronger vehicle for shopping then ever before. With the use of technology, such as the iPhone 5, selling and shopping is very convenient. The only piece of the puzzle left to complete the success of online shopping is how fast can a customer receive their product. Same-day delivery is what online giants like Amazon and eBay are after, because they realize technology is changing the way we do business.

It is understood that this year is huge for online business. It is predicted via Internet Retailer that online sales will increase by 17% this year. Online sales, however, will only as good as your delivery system. Demand is high, but only the company that can keep up with it will ultimately win.

Courier services such as A-1 Express are able to assist companies deliver their products they sell online. This nationwide courier knows what is takes to provide same-day delivery successfully on a consistent basis. With over 1,500 clients and growing, A-1 Express continues to prove itself as a courier that is on pace with modern technology and the same-day delivery demand of e-commerce. A courier can be a strategic partner to take advantage of the anticipated growth and opportunity for the remainder of the year.

References: YahooNews, 9.21.12, CNBC-Nintendo's Wii U Already Selling Out Online

Consumeron Receives Patent Utilizing Mobile Video Devices For Same-Day Delivery

The hunt for same-day delivery is not just happening with the big boys. Many companies are following suit and in the race to provide the most sought after service option since the e-commerce boom. With the creation of mobile devices and tablets, every business knows customers are shopping all the time. This means they are buying something and that something can be their product.

The evolution that same-day delivery causes does not stop with someone just picking up your purchase and have it in your hands within hours. It is more than that with a new personal assistance on demand delivery service company called Consumeron. In a recent article from Telepresence Options, the company says what if you not only had your shopping item delivered, but you could actually see live in real time what the driver purchased for you from that same store.

Consumeron announced their patent issued on the lucrative technology this past week. It includes the patent for remote acquisition and delivery of goods with real-time video inspection. Their same-day delivery service will consist of who they term as stationed mobile delivery agents or “grabbers” throughout various areas of cities. When an order is placed for a product online, the customer will be able to locate and choose the closest grabber to make the pick up of their purchase. That grabber would go into the store and via Consumeron’s new device, the shopper will be given visibility to what the grabber sees. This is as close to feeling the product an online shopper can get.

Customers will be able to use point-of-view video streaming and inspect the very goods they are buying. “We’re so advanced in some areas but backwards in others. Today, when you have to go get it yourself. The most important part of delivery-the last mile-hasn’t really evolved at all. To be able to get anything you need when you need it is just common sense,” said Consumeron CEO and Co-Inventor Mark Barron regarding the delivery of goods in the article. He went on to say, “Consumeron could open up a world of options, and finally bridge the worlds of online shopping and brick-and-mortar retail.”

This is a testament to just how far technology has come. Online shopping is a great convenience already, yet this type of service just makes the online experience friendly and better. To be successful in the e-commerce world, in the middle of the business and consumer, will have to be a courier service.

The boom in the pursuit for same-day delivery has created a fresh and new demand for courier services like A-1 Express. This is a nationwide courier that has the expertise businesses are looking to partner with to put them over the top regarding same-day delivery. A-1 Express understands the latest online service demands and operates with the latest in courier technology to meet them.

Reference: 9.6.12, Jessie Prashar, Mobile Telepresence Adds Fuel To The Race For Same-Day Delivery

Will the US Postal Service Survive?

The US Postal Service has been in existence for centuries and it would be a travesty to even imagine what the country will do without it. However, the loss of the USPS mailing service could be a reality.

Yahoo news has reported the USPS has now defaulted on its two benefit payments, which were mandated by Congress to pay. The due date, which was August 1, has now passed and there is great concern on whether the Postal Service will survive. $5.5 billion was due in retiree health benefit payments and another $5.6 billion is due in September. The company also had to pay $1.5 billion is due to the Labor Department. Congress had discussed a new five-year plan assist the struggling company to increase profits, which including ending this billion dollar reoccurring payment. the plan also meant cutting Saturday deliveries and shutting down postal facilities.

"The impact of the postal default may not be seen by the public, but it will be felt by the business community," said Art Sackler, co-coordinator of the Coalition for a 21st Century Postal Service. "Mailers will be increasingly wary about the stability of the Postal Service. The logical and likely move would be to divert more mail out of the system." The USPS has struggled over the past years. First-class mail volume has decreased 25% since 2006, and will continue to decline. Currently, the Postal Service is incurring a lose of $25 million a day.

Many are questioning over the long-term, will the Postal Service survive? There are ideas to keep the USPS going, mainly changing it into a privatization structured company. This means the Postal Service will no longer be a government institution, which is how it has always been. Whatever is decided, the key is adjusting its' makeup to modern-day business, which will cause it to grow.

If the USPS is going to go bankrupt, it is not expected to happen anytime soon. Fedex and UPS have high stakes in the USPS for its' various deliveries like online shopping. However, consumers are desiring to get their purchases delivered much faster than Fedex and UPS can provide. Courier services like A1Express can be the alternative many businesses and online customers turn to for their e-commerce and other same day delivery services needs. If USPS doesn't survive, courier services may become highly sought after in the future.

References: Yahoonews, 8.6.12, Scott Bomboy-Can America survive without the United States Postal Service; WWLTV, 8.1.12, Post office nears historic default on $5 billion payment