Amazon and Alibaba Compete for Dominance in Southeast Asia

Amazon is exemplifying its dominance in several areas worldwide, and now has its sights set on Southeast Asia. However, China's leading e-retailer Alibaba is robust as well in its online retail, facing off with Amazon and ready to compete.

Via Bloomberg News, Alibaba Group Holding Ltd. and Amazon.com Inc. are about to clash in Southeast Asia Internet Retailer says. Lazada Group SA, which Alibaba bought this year for $1 billion, is Southeast Asia’s largest e-commerce site and is rolling out several initiatives anticipating the arrival of Amazon next year. It will also be expanding its delivery network within the region and beyond, via partners in China and Korea.

Southeast Asia has become a prime location for online retail. The article mentioned that although it lacks the transport and payments infrastructure crucial for adopting e-commerce, the area has become the world’s fastest-growing internet arena, with a combined populace of 620 million people becoming more comfortable with online shopping. “It’s a jungle out here,” Lazada CEO Maximilian Bittner said. He went on to say, “We are looking forward to seeing how they will differentiate themselves.”

“Both of them will want to dominate Southeast Asia,” said Thompson Teo, an associate professor at NUS Business School. “Alibaba has acquired companies to shorten the learning curve and grow faster. It’s going to give Amazon a good fight.” It isn't known as of yet what Amazon will be implementing there, but some predict Amazon Prime delivery service and Amazon Fresh to Singapore in the first quarter, which involves Same-Day Delivery in a big city. Then, Amazon will springboard into the rest of the region. “Grocery is seen as notoriously difficult one to do online, but it’s the largest market representing 60% of overall Southeast Asian retail,” Egan said. “Customers are much more engaged. They visit twice a week so the frequency allows you to develop a deep relationship with customers.”

Amazon already dominates the US with its current same-day delivery option--Amazon Prime. Prime members have it as a free service in a total of 27 major US cities. These cities include San Francisco Bay Area, San Diego, Seattle-Tacoma, Boston, New York, Chicago, Indianapolis, Baltimore, Washington DC, Nashville, Raleigh, Richmond, Tucson, Orlando, Tampa, and Atlanta. Amazon has free same-day delivery in Toronto and Vancouver as well. The inevitable is that Amazon will be using drones in every major city nationwide as well. Now, the retail giant is headed for Southeast Asia.

With both e-retailers having same-day delivery in common, it is certain that other retailers will need to jump on board in order to thrive in the coming years. One way to do that is to partner with a Same-Day Courier like A-1 Express to increase salves online, as more and more shoppers enjoy the convenience of being able to make online purchases from wherever they are. Brick-and-mortar stores can't depend solely on traffic in a growing world of e-commerce. A New Jersey Courier that can provide same-day services nationwide is the direction to go in.

Reference: 12.14.16, www.internetretailer.com, Bloomberg News, Amazon and Alibaba’s Lazada prepare to face off in Southeast Asia

Warehouse Industry Growing because of Same-Day Delivery

Warehousing is what retailers have come to grips as a vital part of having success with Same-Day Delivery. This is something Amazon had in mind when it strategically planted state-of-the-art order fulfillment centers throughout the US. As a result, the e-retail leader is driving a trend online with fast delivery that must have close proximity warehousing to work. Now, more retailers are renting warehouse space and the numbers show it.

Retail Dive reported via Bloomberg that online retail is now accounting for 20% of warehouse space. Also, the renting of prime warehouse space in the US rose 9.9% last year. It pointed out six markets that were among the nine with the biggest increases worldwide. Oakland topped the increases with 29.8%, which was seen also in Northern New Jersey, according to real-estate brokerage firm CBRE.

David Egan, CBRE’s head of industrial and logistics research for the Americas, told the Wall Street Journal earlier this month, “There are huge premiums being placed right now on being close to the consumer—speed of service, speed of delivery is a critical component of why people choose to buy from one retailer over another. To get the goods to consumers fast, you have to get close to them.”

Amazon is driving the surge in warehousing within the retail industry resulting from same-day delivery expansion. The retailer leader launched 11 more major US cities to its' free same-day delivery program. Those new cities included Sacramento, Stockton, Charlotte, Cincinnati, Fresno, Louisville, Tucson, Milwaukee, Nashville, Raleigh, and Richmond. With a total of 27 service cities, Amazon is on pace to eventually provide same-day delivery nationwide, solely enabled by its distribution systems and warehousing.

Centrally-located warehousing won't due when it comes to same-day delivery. This use to be the model for distribution until the weigh in of e-commerce and the ability to scale operations fast. Online retail is projected to reach $500 billion by 2018, which means there will be a heavy emphasis on how close can a retailer get their products to customer markets. Brick-and-mortar retailers use their store locations as warehouses and partner with a Same-Day Courier like A-1 Express to fulfill online order deliveries. With a New Jersey Courier that has a national footprint and leading courier technology like this, it helps retailers create the competitive advantage they need.

When demand spikes upward in specific markets, a retailer can quickly implement a same-day delivery solution there. With last-mile deliveries, just having a solid warehousing system in place isn't enough. It has to be coupled with online order fulfillment supply chain to get customer purchases to their front door. Indeed, same-day delivery is expected to reach $987 million by 2019, which will result in the inevitable growth to be seized by a company. The one with the right delivery outfit will be the one that keeps the business. Google, Amazon, Whole Foods, Macy's, and more have jumped into offering a fast delivery option and others should do the same.

Reference: 5.25.16, www.retaildive.com,Daphne Howland, Report: E-commerce growth driving rush for warehouse space

Shopping Getting Easier With Same-Day Delivery

There are alot of companies that have taken same-day delivery seriously, as the stakes get higher and higher to compete with Amazon. It may cost to dive into gives shoppers a same-day option; however, it's worth it. It's worth is now, but more importantly, it will be in the coming years. “People are getting more and more accustomed to getting what they want, when they want it,” said CEO and Founder Daphne Carmeli of Deliv, in a recent article by the New York Post. Deliv use to be known as just a delivery start-up company, now has the likes of Macy's as a same-day delivery partner, as well as a number of shopping mall retailers.

In 2013 right before the holiday season, Macy's launched same-day delivery in 8 major US cites: San Francisco, Los Angeles, San Jose, Houston, ,Seattle, New Jersey, Washington DC, and Chicago. Sister company Bloomingdale's also did as well, rolling out the service in Los Angeles, San Francisco, San Jose, and Chicago. Now, Macy's offers same-day delivery in multiple US markets, even more than retail leader Amazon.

Macy's is just one example of how companies are making shopping easier with same-day delivery. BestBuy is now testing same-day delivery, utilizing the help of Deliv also. During the recent holiday season, customers had Uber as an option for deliver same-day. Uber went from transporting people via to transporting gifts as well, via its' crowdsourcing approach. This is one of the companies transforming into a versatile delivery service that can meet the convenience shipping demands of customers, which is only going to grow.

The article mentioned that in this holiday season, shipping companies like Fedex experienced it's busiest peak holiday season ever. Amazon reached 1 billion shipped packages this year. Etsy ASAP and Roadie are among others that are shipping cargo and packages also. E-commerce sales amounted to roughly 300 billion this year. Online retail is expected to reach $500 billion by 2018. The reason is because more retail is being conducted from places by shoppers other than the store.

One third of purchases were made online and then picked up in store. This became huge this year and will only expand in 2016 by your standard brick-and-mortar retailers, even if they elect not to invest into same-day delivery for now. Yet, with the amount of advancements that Amazon is making, most big name retailers are following them in order to keep up. Amazon even implemented free same-day delivery this year in several major US cities. The retailer is also looking into building a 20-plane fleet to reduce its' delivery times.

As technology creates more avenues for shopping convenience, a Same-Day Courier like A-1 Express will partner with more and more companies that desire to provide effortless shipping with same-day delivery. The New York Courier has a nationwide footprint for businesses that need same-day delivery solutions in major cities and the expertise to innovate also.

Reference: 12.27.15, www.nypost.com, Catherine Curan, Companies aim to make shopping even easier

UK Retailer Argos Rolls Out Fast Track Same-Day Delivery Service

There couldn't be a better time for retailers to step up their game with same-day delivery, as Amazon is driving more and more of them to do just that. A recent report by The Guardian shows that this is not just going on with Google, Macy's, BestBuy, and more in the US, but also abroad. Ask high-street retailer Argos and it will tell you that if you're going to thrive against Amazon, you're going to have to compete their way, which is offering shoppers a fast online delivery option.

Argos' has launched Fast Track delivery service to to offer same-day delivery to shoppers right before Black Friday and the big holiday season begins. The service is making available 20,000 products to customers with only a flat fee of £3.95, which is less expensive in order to combat Amazon’s low cost Prime Now. In the UK, Prime Now is £6.99 per order and is said to only be available within certain London postcodes, versus Argos' Fast Track delivery, which will be offered all around the UK.

“Argos led the way with click and collect 15 years ago, and customers can continue to shop with us in the traditional ways if they choose to,” said John Walden, chief executive of Argos’s owner, Home Retail Group. He went on optimistically about the new service stating, “But we believe Fast Track is the next big innovation and brings shopping into the digital age for customers. No other retailer can offer the breadth of products immediately or at that speed."

He also stated, “We can do this because we are a different type of retailer. We know where every product is in our network and for customers who shop across digital channels – online and mobile – that means they can get what they want faster and with certainty.” The article mentioned how Walden would not disclose how much Argos had invested in re-engineering its national “hub and spoke” model of 170 larger stores and distribution centers for better quality and delivery speed. Amazon has distribution centers strategically located all over the US, appearing to be the same concept and objective.

Sophie McCarthy, a retail analyst with Conlumino, also commented in the report regarding the best move for Argos to make was to launch same-day delivery. She stated, “This has the potential to be a serious game changer, not only for Argos, but for the wider UK retail market as retailers increasingly chase fulfillment as a competitive weapon. There is no doubt that the introduction of a same-day delivery service for as little as £3.95 is going to be an expensive business for Argos, but the costs of it not competing on delivery are likely to be even higher – its last trading update revealed further sales declines as it struggled to evolve its traditional catalogue to fit the demands of the modern consumer.”

It makes sense for Argos to do it right before the holiday season, as Google, Amazon, Macy's, and others are doing the same. For retailers seeking to drive their sales upward online, a Same-Day Courier like A-1 Express can partner with any retailer and get their same-day delivery program launched quickly. The New Jersey Courier has a national footprint, enabling it to implement the service on a large scale also. Argos and other retailers see the benefits of same-day delivery, and it won't be long until others begin to follow.

Reference: 10.6.15, www.theguardian.com, Rebecca Smithers, Argos squares up to Amazon with same-day delivery across UK

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