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    Entries in Las Vegas Courier (1)

    Thursday
    Sep262013

    Chinese Retailer Delivers In One Hour, So Can Same-Day Courier

    Retailers are all diving in head first into same-day delivery and it is revolutionizing the way we do business. Whether it is brick-and-mortar stores delivering online purchases to shoppers' homes or e-retailers fulfilling their online orders fast, e-commerce is literally on the move more than it every has before. This is not only in the US, but worldwide. Ask Kuaishubao.com how to approach same-day delivery and the company will share what its' doing that is making it so successful on its' home turf.

    Kuaishubao, a Chinese online retailer, is highly successful with the great service niche of getting products delivered to its' customers within one hour. Internet Retailer reported about the company's trendy same-day delivery that is getting so much attention in China. The retailer provides a guaranteed one-hour delivery within seven Chinese cities, including Beijing, Shanghai and Shenzhen. Per Kuaishubao's CEO and Founder Zhiming Xu, most of their couriers make their deliveries within 30 minutes. This is an astounding figure for same-day delivery.

    “I can easily find shopping malls on the Internet, but I could never find an online convenience store. I founded Kuaishubao to build an online convenient store with the fastest delivery in China", said Xu. The Kuaishubao founder said he was inspired by the fast pace if McDonald's hamburger chain. The online delivery system is built on the concept of have many small 1,000 square foot warehouses in each of its' service cities. It also keeps about 1,000 SKU's of products within the warehouses, such as magazines, gifts, instant beverages, and popular books. Each warehouse services about a 3.1 mile radius. With this close proximity, a motorbike driver is able to reach any delivery address in 20 minutes.

    The company has the numbers to prove it has a same-day delivery system that works. It has 100,000 registered users and sales are expected to hit $2.5 million this year. This is all with little advertising. The reported stated 40% of its' revenue is from books and magazines, and 20% from ready-to-mix foods and beverages. The gross margin for Kuaishubao is currently 20%, yet can grow as the company seeks to expand. Xu stated he is going to expand to the company into three more cities. Although growth is slow, the longevity of Kuaishubao will depend heavily on a solid foundation to consistently meet online demand. This is exactly why retail giants such as Wal-Mart, eBay, and Amazon have tested same-day delivery before offering it nationwide.

    Kuaishubao is just an example of how even small online companies can become be successful with the right delivery system and an out-of-the-box idea. The company uses its' own couriers, however, many other e-retailers use Same-Day Couriers like A-1 Express to meet their same-day delivery needs. This Las Vegas Courier has the courier expertise to assist any e-retailer create a dynamic delivery logistics solution. If Kuaishubao is performing this level of e-retail in China, A-1 Express can help perform hour deliveries in the US.

    Reference: 9.16.13, Internet Retailer, Frank Tong, How a Chinese e-retailer delivers the goods in one hour