Same-Day Delivery Race Heats Up, Deliv Acquires WeDeliver

The competition within online retail is intensifying as more and more companies pursue to meet on-demand shopping with same-day delivery. It is gripping retailers as a "must-have" service to thrive within a technology-driven business world. Physical store retailers aren't waiting until same-day delivery is the norm, because by that time, e-retailers like Google and Amazon, will have mounds of retail market.

One delivery company has found a need and niche to meet brick-and-mortar stores with same-day delivery where they are. Deliv, widely known for its partnership with department store leader Macy's, has announced it's official buyout of WeDeliver, a large delivery competitor in Chicago. Deliv now has an extensive market control in that area, which is one of the primary cities by companies to establish same-day delivery. It is clear Deliv is after becoming the biggest same-day provider nationwide, and everything that comes along with it, including more retail partnerships.

Deliv isn't expanding for mere growth, but also to not get outpaced by Amazon. Ingrid Bekkers, Deliv VP of Marketing, stated in the article, “Two-day delivery for retailers has become the norm, but retailers are feeling the need to respond to Amazon and its same-day delivery option”. Amazon has rolled out of same-day delivery in a number of cities; however, it recently announced offering Prime members free same-day delivery. Beginning in California, Amazon plans to expand into San Francisco Bay Area, Phoenix, San Diego, Baltimore, Boston, Dallas-Fort Worth, Indianapolis, New York, Philadelphia, Seattle-Tacoma, Washington DC, Tampa Bay, and Atlanta also.

Being on the transportation side, Deliv partners with a number of malls and well-known retailers to compete with e-retailers like Amazon. Mall stores like FootLocker have Deliv on call to pick up and deliver purchases online to their customer's front door. Macy's uses Deliv for same-day delivery in Los Angeles, San Francisco, San Jose, Houston, Chicago, Washington DC, New Jersey, and Seattle. In addition, sister company Bloomingdale's utilizes Deliv in San Francisco, Los Angeles, San Jose, and Chicago.

Macy's is not the only brick-and-mortar retailer on board with same-day delivery. Retail leader Wal-Mart has same-day delivery in multiple cities in the US and free same-day service in Canada. It also has Wal-MarttoGo, which allows online shoppers to pick up their order from stores. In February, Ace Hardware rolled out same-day delivery testing in 33 of its' 4,400 stores in Arizona, Texas, Colorado, Illinois, Maryland, and Florida. Also earlier this year in January, pet food company Petco partnered with Instacart to test two pilot programs for the service in San Francisco and Boston.

E-retail requires physical store retailers to get ahead of the curve, offering the convenience shoppers want. A-1 Express is a nationwide courier that mall and brick-and-mortar retailers can partner with for same-day delivery. With the latest courier technology and expertise, the New Jersey Courier can evaluate retailer needs and implement a same-day logistics solution fit for growth. To compete with Amazon, Deliv and others, A-1 Express is a superior delivery option in a tech-focused business world.

Reference: 6.24.15, Direct Marketing News, Al Urbanski, Same-Day Deliverer Expands in Chicago

Alibaba Goes 3-Hour Delivery For Healthcare Products

In the US, we think of big name retailers like Google, Amazon, Wal-Mart and others that have implemented various models of same-day delivery. However, the service isn't only thriving in the US, but also in other countries, namely China. Retail giant Alibaba can attest to this, especially with its' recent announcement that shows it is making same-day delivery a core competency in all that it does.

Reuters recently reported that Alibaba Group Holding has announced it is rolling out a three-hour same-day delivery service for healthcare products in five Chinese cities. The five cities will include Beijing and Shanghai. This will only be the beginning, as Alibaba plans to expand the healthcare delivery service to 19 cities by the end of this year. The retailer is wasting no time with offering the service which makes sense due to economies of scale and volume profitability created by servicing more cities.

"This service is ideal for consumers who need non-prescription drugs and other healthcare products quickly," said Xu Hui, head of Cainiao Ji Su Da. "This service effectively mobilizes resources at both online and offline stores, which in turn brings the customers a seamless shopping experience." Cainiao is an Alibaba affiliate operating in partnership with logistics firms, collects and delivers orders. This is similar to a same-day courier like A-1 Express and what it does for hundreds of retailers. The nationwide courier performs same-day delivery for time-sensitive items, such as daily prescriptions and other health care goods.

Alibaba works via a partnership with five pharmacy chains that sell their healthcare products on Alibaba's Tmall.com. This shows Alibaba has a working relationship with the pharmacy chains, and as expansion became more feasible, it made sense for the pharmacy chain to join up with Alibaba. The goods are sold from several online stores within the Tmall. Ji Su Da, or "fast delivery", is what the service is referred to as. Currently, deliveries includes more than 1,500 drugstores. The article mentions how shoppers now have access to these stores and can request the new service. Ji Su Da is a part of a broader trend called "online to offline". This means Alibaba's pursuit is to bring online various offline services, from flagging a taxi to finding nearby restaurant discounts. Shoppers can use their smartphones to find someone's location and the nearest service provider also.

Rival JD.com is out to gain more share of the online market as well, with a strong logistical network and a fast delivery service similar to Amazon. In the US, Amazon has its' one-hour Prime Now service in various major US cities. The e-retailer recently launched same-day delivery in Baltimore and Miami. Right before the holiday season last year, Amazon rolled out the service in New York City, Indianapolis, Washington DC, Atlanta, Dallas, and Philadelphia. Amazon also is moving forward with same-day delivery via drones, which the FAA approved its' usage.

Same-day delivery is very beneficial for the healthcare industry, both in China and in the US. A-1 Express is a Dallas Courier that can successfully transport time-sensitive healthcare goods, including pick up and delivery from local drugstores, hospitals, residences, nursing homes, and other facilities.

Reference: 5.12.15,www.reuters.com, Paul Carsten, Alibaba rolls out 3-hour delivery service for healthcare goods

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

Wal-Mart, Google, Amazon And More In The Same-Day Delivery Race

The race for same-day delivery is as competitive as they come. Physical stores are looking for ways to get their sales up, and online is how they will do it. As they look at their web-based retailers, like Amazon and Google, it is becoming very clear that without e-commerce, the brick-and-mortar companies are going to eventually become a long-distance second option for making purchases. This is why same-day delivery has become so sought after for a number of large retailers.

In a recent report, Forbes discussed the same-day delivery race involving groceries and all of the big players trying to win first place in the online market. Amazon has its’ online grocery service, AmazonFresh, which rolled out in Seattle. It now has expanded to San Francisco and Los Angeles. Customers receive free same-day delivery for orders over $35. The online retailer is also building more and more strategically-located, fulfillment centers to get closer to their customers. Amazon knows that it can’t just be web-based. There has to be a level of physical reach to the customer to make a substantial profit and maintain the market.

Google is in the heat of the pack, as the retailer rolled out Google Shopping Express. It’s Google’s version of same-day delivery of food for a number of brick-and-mortar retailers like Walgreen’s and Target. What started last year in the Bay area, has now expanded to Los Angeles. As far as perishable groceries, product management director Tom Fallow stated, “it’s something we’re in the advanced stages of working on”. Perishables would be very attractive to shoppers; however, they must be delivered within a short time span.

The largest physical store retailer in the race is Wal-Mart and rightly so. Wal-Mart has at least 4,000 locations throughout the US and providing same-day delivery of their groceries makes sense. The company just entered its’ second market in Denver for its’ service “Wal-MarttoGo”. It includes customers being able to order online and pick up their order without having to get out of their vehicle. A Wal-Mart employee will pull the order and load the groceries for them. All the responses from those involved in the testing had on positive comments about the service. For Wal-Mart then, the issue will be the right pricing mix.

Also, the report mentioned an insightful statistic about retailers turning toward online to beef up their sales. Researcher Forrester predicts that 10% of US sales will stem from e-commerce by 2017. This stat shows that online retail can be a revenue generator and it’s no wonder so many companies are in the same-day delivery race. It’s the connecting bridge from online selling, to the customer.

Retailers, especially those that are web-based, can’t afford to not offer shoppers an online product with an optimal delivery system. A nationwide courier like A-1 Express can be just what a physical store retailer needs to improve their online delivery capacity. The Chicago Courier can implement a courier “last mile” solution quickly. Whether general items or groceries, A-1 Express can help physical retailers win the same-day delivery race.

Reference: 4.16.14, www.forbes.com, Jeff Bercovici, The Same-Day War: Amazon, Google And Walmart Race To Bring Your Groceries

FedEx And UPS Threatened By New E-Commerce Solutions And Same-Day Delivery

E-Commerce is growing bigger and having more impact on the way we do business each year. Because of its’ 16% annual growth, more companies are focusing in on innovative business strategies to meet the demand e-commerce creates, especially relative to shipping. Major e-retailers are even implementing optimal package delivery services themselves, which is keeping shipping giants like Fedex and UPS out of the loop.

Reuters reported Fedex and UPS have new threats in regards to e-commerce and may indeed need to pay attention to what is happening in the industry in the US. E-Retail leaders are not depending on Fedex and UPS like they use to. They are actually creating various delivery solutions, such as building warehouses in various locations close enough to fulfill their own deliveries. Amazon is aggressively implementing this same model, building distribution centers closer and closer to its’ customers. It equates to saving millions in shipping costs. The company has also increased usage of its’ own delivery trucks.

Global retailer Wal-Mart is making its’ own moves in the e-commerce arena as well. Instead of fulfilling online orders from its’ warehouses hundreds of miles away, Wal-Mart is simply shipping directly from local stores closest to the customer. The article stated Wal-Mart has being doing this for years and has now decided to increase their online store shipping program to 50 locations. This is double the amount it already has. "We are at least two zones closer by utilizing the stores," Anderson said. "The closer we can inject the order into our network, the more this saves the customer time and reduces what it will cost us to get it to the customer."

Wal-Mart is even testing same-day delivery to its’ shoppers in various cities nationwide. Other retailers such as Macy’s, BestBuy, and Target are taking the same delivery course, pursuing to keep their sales up at their brick-and-mortar stores. M-Commerce, or Mobile-Commerce, via ipads, tablets, etc., is playing a role in the increase of online sales. This has ultimately fueled the revenue for e-retailers to where it now makes sense to invest and deliver themselves. Fedex and UPS are essentially being cut out of the picture.

"UPS and FedEx are not only watching this, they are likely concerned about it. Big companies like Amazon and Wal-Mart will dictate which direction this goes. Those are the companies that FedEx and UPS need to fill their planes and trucks,” said Lou Tapper, an executive at third-party logistics company Longistics and former FedEx employee for 18 years. In the past, the increase in e-commerce sales would have been more guaranteed revenue for FedEx and UPS. This is not the case anymore.

E-Retailers are now seeking to get their online orders delivered faster than what Fedex and UPS can offer. Same-day couriers like A-1 Express being partnered with to develop courier logistic solutions to make their delivery systems work. This Portland Courier has a national footprint and the courier expertise to keep up with the growth of e-commerce.

Reference: 7.14.13, Reuters, Alistair Barr, Analysis: New e-commerce strategies threaten UPS, FedEx