VF Corp Expects 25% E-Commerce Growth, Could Need Same-Day Delivery

There is nothing like a company that knows where it going, how it will get there and has the results to prove it. E-retailers are pursuing to stake their share of the online market, which is revolutionizing the way we do business. VF Corp is showing they understand e-commerce and the future of it. Their online sales have continued to increase and show no signs of slowing down.

VF Corp has plans to grow its’ e-commerce sales 25% annually through 2017, reported Internet Retailer. The company’s goal is the reach $17 billion in global sales by that year, which forecasts $4.4 billion of that figure will consist of retail store and e-commerce. $17 billion is an aggressive projection; however, they have the numbers to back it up. VF brought in $215 million in online sales in 2012, compared to $177.9 million in 2011. We see a steady progression of online business and with the right direct-to-consumer sales strategies, VF’s goal is attainable.

VF is the parent company of 25 brands, including Wrangler, The North Face, Lee, Smartwool and Ella Moss. The growth strategy the company plans to implement consist of all of its’ brands increasing its’ e-commerce sales. VF operates 1,129 stores currently, yet plans to build an additional 645 stores by 2017. With more store locations, this can make VF more effective in the order fulfillment of online orders. Same-day couriers such as A-1 Express is a viable option to partner with to deliver online purchases that are made via e-commerce.

“Each of our brands is in the process of building a road map, bringing them to their state of excellence,” said vice president of VF direct/customer teams, Michael Gannaway. Gannaway said in the report these brand road maps included what could improve areas of marketing, social, usability, and fulfillment. All of these areas are vital within online retail and to make strides against the competition. Many large e-retailers, such as Wal-Mart, eBay, Amason, and more, are pursuing same-day delivery to meet the fulfillment aspect of online retail.

The e-commerce industry is expected to rise from 16% to 17% this year and experts forecast it will continue. One main driver is the increase in the use if smartphones, iPads, tablets, and iPhones. Technology has created the ease and comfortability needed for shoppers to engage more in online purchases. Technology will continue to grow speedily, and e-commerce will grow right along with it. With this type of growth, online demand for products to be delivered to shoppers faster is becoming pivotal to e-commerce. This is why many large e-retailers worldwide are being innovative with delivery solutions, which also can provide an edge over competitors.

VF Corp has a number of brands to develop e-commerce for and A-1 Express can assist the fulfillment of all of them. This nationwide courier has the transportation expertise to create a courier logistics solution to fit their e-commerce business model. With the emergence of same-day delivery of online products, it is inevitable VF will need a superior delivery system. A-1 Express is able to quickly implement same-day delivery for VF or any company to help meet online demand.

Reference: Internet Retailer, Kevin Woodward, VF expects e-commerce sales to grow 25% annually through 2017

Ahold USA Created Pick-Up Service, Could use Same-Day Delivery

Many grocery stores are at work pursuing to create just the right shopping experience for the future. It appears the next innovation in grocery shopping is here. You can ask Ahold USA about their new idea, which is showing even the biggest of grocery retailers how to be successful.

Internet Retailer recently reported Ahold USA has created a grocery pick-up service called Peapod. With Ahold, customers do not have to come and wait in long lines to finally get to the register. Customers can actually go right online, buy the groceries they want and then, pick their grocery order up at their local supermarket. In their case, it is Stop & Shop or Giant Foods. There are no fees involved with the service as well.

The Peapod also offers home delivery service, which has been in operation for over a decade. This means the operation has been proven and Ahold optimizes on productivity. With this innovative service, productivity and efficiency is key. It is a two-hour window delivery service. If a customer has the time to wait, this is a great option for receiving your groceries.

A customer goes to Peapod.com to shop for the groceries and the supermarket fulfills the order. You can set the time they would like to pick up their order. Upon arrival between the pick-up time, a supermarket employees confirms who the recipient is. The plus about Peapod is, if you order something online that is not in stock, you have to option of allowing them to substitute for it or credit the account for a full refund.

With the growth of online retail consistently growing annually, it is inevitable that grocery online services were bound to follow. Online retail is also creating a higher demand for the speed in which products are delivered. This opens the door for competitors with an edge in this area, to capture more market share. Retail giants such as Wal-Mart, are currently testing same-day delivery of online products. Wal-Mart is exploring a Peapod type service as well.

Grocery pick-up and delivery services both have a place for same-day delivery by courier services like A-1 Express. This nationwide courier can be a viable option for grocery store chains to turn to for grocery deliveries to their customers. A-1 Express is able to develop superior courier logistic solutions to meet any online grocery service needs. Ahold USA could potentially partner with A-1 Express to pick-up a customer's grocery order and deliver to them.

Reference: Internet Retailer, Danny Silverman, 6.26.03, Skipping the checkout line: a first look at Ahold USA's pick-up service

Could Amazon.com Become A Courier?

It sounds strange at first, but it could very well be true.  Amazon is after the momentum that Apple has and are analyzing what they can do to issue more blows to their greatest competitor.  Amazon's next possible move is to become a courier.

Amazon is the world's largest retailer; doing business online with products we have come to love crave for.  The kindle fire sold an estimated $5 million units last year and is doing well the first quarter of 2012.  The company sell e-books by the millions and has control of this  specialty market.  The online business industry grew over 15% and Amazon is one reason why.  The online giant shows dominance in the retail world.

A recent Forbes reported how Amazon already performs Fed-ex like services to its' customers.  They provide third-party logistic services to businesses that utilize Amazon for selling their products.  They also spent over $4 billion last year building 17 fulfillment centers.  This enabled Amazon to offer their retail business clients warehousing and shipping services for product stored.  According to the Mercent Corporation, online sales specialty company, Amazon commissions about 10 percent on any item sold by a third party as 100 percent profit and also charges fees to those same retailers that utilize their warehousing.

Amazon is providing services just like shipping giant Fed Ex, which is a global courier.  Colin Gillis, a BGC Partners LP analyst, stated in an interview, "They're building out fulfillment because they realize that fast and predictable delivery of product is a huge driver of their business".  Essentially, Amazon can meet all their customers' needs.  The only service left is the actual physical transportation and product delivery.  It would make sense to gradually begin to deliver their products to the end user themselves.  The Forbes report mentions Amazon is testing pick up stations where customers can have packages delivered.  

Either way, Amazon's success is only complete when that product arrives at the customer's front door.  Even if Amazon does not involve itself in delivering product themselves, the consumer wants it fast and desires no delays in their shipment.  This type of fulfillment within the supply chain is ideal for using couriers like A-1 Express The company is a nationwide courier and can provide same-day delivery, which is very beneficial when it comes not only the order fulfillment, but shipment returns and replacements.    

References:  3.24.12, San Francisco Chronicle, Danielle Kucera, Associated Press-Amazon.com wrings profit from fulfillment. 3.26.12, Forbes, Michael Canellos-Will Amazon Become The Next FedEx?