Amazon Set To Develop Global Delivery Network

It isn't hard to see that Amazon is taking online retail to the next level. Online shopping is expected to grow to $500 billion by 2018, which attests to why the retailer is being very aggressive in its' growth investments as well. Now, the company is moving beyond just being established in the US, but globally.

A recent report from Internet Retailer via Bloomberg News is showing that one of the key markets that Amazon is diving into is China. The largest online retail player in China is Alibaba, which Amazon is planning to develop a global delivery network to compete against it. AliResearch, Alibaba's research company, has forecasted that the market in China is expected to reach $1 trillion in e-commerce by 2020, meeting the demand of 900 million shoppers. It's no coincidence that Amazon is planning a big move there.

Internet Retailer discussed how within Amazon's 2013 report regarding fulfillment, the vast global delivery network that it will create there will control the flow of goods from factories in China and India, to customer doorsteps in Atlanta, New York and London. Amazon launched Same-Day Delivery in Atlanta last year. A month ago, the retail leader made greater acquisitions in the UK, acquiring more of French delivery company Colis Prive. Amazon already owned 25% of the company and there probably will gain more. In 2014, Amazon also acquired 4.2% of UK delivery company Yodel. Not to mention that online retail is on the rise in Great Britain as well.

With Amazon's innovation to engage in possessing a global delivery network, it will automatically put the e-retailer in direct competition with FedEx and UPS. The article stated that Amazon's global supply chain will put it at the center of a logistics industry that involves not just shippers like big carriers, but also other middlemen who handle cargo and paperwork associated with transnational trade. Amazon's new supply chain will cause the company to bypass these brokers, amassing inventory from thousands of merchants around the world and then buying space on trucks, planes, and ships at reduced rates.

Merchants will be able to book cargo space online or via mobile devices, creating what Amazon described as a “one click-ship for seamless international trade and shipping.” The 2013 report ultimately stated that “Sellers will no longer book with DHL, UPS or Fedex but will book directly with Amazon. The ease and transparency of this disintermediation will be revolutionary and sellers will flock to FBA given the competitive pricing.”

With a global delivery network in grasp of Amazon, more than likely, getting shoppers their online order fast will be next. The retailer has implemented same-day delivery for Prime members in strategic major US cities. Amazon same-day delivery in the San Francisco Bay Area, Seattle-Tacoma, Dallas-Fort Worth, San Diego, Indianapolis, New York, Philadelphia, Baltimore, Boston, Phoenix, Washington DC, Tampa Bay, and Atlanta. This is an option that has set the bar high, coupled with Amazon's effective order fulfillment center logistics. Amazon even launched free same-day delivery last year in 14 metropolitan cities the US, beginning with California cities.

Same-day delivery is going to increase right along with e-commerce, not only within the retail industry, but in other industries as well. The service is forecasted to reach $987 million by 2019 and top retailers like Amazon will be the core drivers of expanding the service. Retailers and brick-and-mortar stores will partner with a Same-Day Courier like A-1 Express to take advantage of the convenience demand by shoppers with the boom online. The New York Courier is a viable option for fast delivery implementation in major US cities nationwide.

Reference: 2.9.16, www.internetretailer.com, Bloomberg News, Amazon eyes Alibaba as it builds a global delivery network

Will Same-Day Delivery Work this Holiday Season?

When it is about getting a same-day delivery program to work during the holidays, it will take more than just a bunch of drivers getting packages and boxes to a shopper's front door. A retailer will have to have a number of pieces to the puzzle for same-day delivery to work this holiday season.

During this time of the year, the timeliness of your service is crucial, as online retail makes a big impression on shoppers when you can deliver quicker than the time frame that a retailer's same-day delivery is committed to be performed within. Some retailers have a same-day delivery with a guarantee of delivery by 6pm or 9pm. If a company can get their deliveries executed by the afternoon, shoppers will consider their same-day delivery experience to be more than they expected and help advertise their service. This may be advertising the old fashioned way, however, the results are what retailers are after. The holiday season is a time where retailers have to make it count for three months and gaining the upper hand with same-day delivery will allow them to capture more US markets.

Amazon is capturing more markets with free same-day delivery service in 16 US cities. Amazon is one big retailer that has poured multiple investments into implementing same-day delivery throughout the US. The retail leader launched free same-day delivery in 14 Los Angeles metropolitan cities earlier this year, and then, right before the holiday season began, expanded their free service to Chicago and Orlando. Amazon's simple $99 Prime membership programs include free same-day delivery for orders over $35.

BestBuy also began testing same-day delivery in San Francisco and surrounding areas prior to the holidays. The company has partnered with delivery provider Deliv to perform the actual deliveries. Deliv is a crowdsourcing model, which local drivers in close proximity can pick up and deliver online orders easily. This makes sense when the delivery aspect of same-day delivery is not your strong suit. It takes an effective logistical routing system and design to make the service work.

Kohl's is another retailers that add to its' same-day program in time for the holidays, expanding into San Francisco, the Bay Area and Chicago. Before Black Friday, its' same-day delivery program became available in Los Angeles, Boston, Philadelphia, Brooklyn/Queens, Jersey, and Miami. This was an aggressive expansion plan for the service, showing that Kohl's is competing with Amazon, Macy's and others to win over those shoppers looking for a same-day delivery option.

With holiday shipping being a must for shoppers, having an alternative for them to get their online order fulfilled would be a versatile option for them. Store pick-up allows customers to either have their online order delivered same day, or they can have their item shipped to a local store for pick up. Another type of store pick-up option is to offer orders to be made online for direct store pick-up. You can simply go to the specific store you choose to pick it up from where it is available the same day.

It takes a lot of logistics for same-day delivery to work, with it being a fast service and there is little room for error, especially now. During the holiday stretch, any retailer looking to increase sales with a same-day service can partner with a Same-Day Courier like A-1 Express to implement a sound program in a short period of time. The New York Courier has a national footprint and the expertise to develop a same-day solution that will last.

Millennials Driving More Retailers To Offer Same-Day Delivery

The growth of online retail is coming from all directions, including from millennials. With the use of tech gadgets and mobile devices, the new generation is making its' impact on how retailers are doing business. Their voice is even being heard when it comes to same-day delivery growth.

Multichannels Merchants recently released news relative to a high percentage of millennials are all in with same-day delivery being offered as a shipping option. Fraud prevention firm Trustev and Coldwell Banker Commerical Affiliates performed surveys that found over 56% of consumers between ages 18-34 expect retailers to provide same-day shipping when they order online, and 64% of the millennial demographic were more likely to make an online purchase if same-day delivery was offered. This is a huge stat that is going to make a number of heads turn by physical and web-based only retailers that are not on board with same-day delivery yet.

Rurik Bradbury, CMO of Trustev, commented on the findings in the report. "They’re mostly digital natives, and the younger half grew up knowing nothing but online apps. So we can see how their worldview has shaped those expectations. At this point we’ve had e-commerce for more than 20 years, but now there are a bunch of same-day delivery providers like Deliv and Postmates, built with this group’s real-time demands in mind.”

In regards to fraud for the quick turnaround times for same-day delivery, he also said, “A lot of famous brands, including a large higher-end clothing retailer, have told us they dread the push from executive management to do same day because it’s not possible with their current process. The average retailer reviews 10% of its transactions, so to turn these orders around (while mitigating fraud) and not missing the one-day cutoff isn’t possible with current systems.”

Amazon and 1-800 Flowers were the only two of the 50 top retailers in the Manhattan area zip code 10001, which Trustev researched, that offered same-day delivery as a standard option within their checkout process. Yet, there is a growing list of companies diving into rolling out same-day delivery programs nationwide, including big name retailers like Walmart, Williams Sonoma, Target, Ulta Beauty, Costco, Staples, Ace Hardware, Neiman Marcus and Macy's. Kohl’s has now launched its' same-day pilot program in San Francisco and Chicago also.

Macy's is the department store retailer that has expanded its' same-day delivery service the most. Late last year, Macy's rolled out its' program in 8 major US cities, which included San Francisco, Los Angeles, San Jose, Houston, Seattle, Chicago, Washington DC, and New Jersey. Its' program grew into nine more US markets this past August, including plans by Macy's to expand into 14 more by the end of the year. Macy's now is in more markets with the service than Amazon.

With these figures by millennials, not to mention that online retail is forecasted to grow upward to $500 billion by 2018, companies will begin seeing that same-day delivery will become a standard option for shoppers. Retailers aren't on their own when it comes to implementing the popular service. They can partner with a same-day courier like A-1 Express and get their online business turned toward the new fast service trends to come. The New York Courier has a nationwide footprint and can help retailers gain more of the millennial market.

Reference: 9.24.15, www.multichannelmerchant.com, Mike O'Brien, Half of Millennials Want Same-Day Delivery, but Most Retailers Don’t Offer It

Diapers.com Says Busy Moms Using Same-Day Delivery

It use to be challenging for parenthood moms taking care of their newborn or infant when those "suddenlies" occur, like running out of diapers. Not any more. Now for those moments, moms have turned to having their baby in one hand and a phone in the other, as they turn to same-day delivery for all sorts of baby items.

Mashable recently reported how Diapers.com is in a growing mobile market of moms buying immediate baby needs. Diapers.com experienced 50% of purchases made from a mobile device last year. This is up 25% from the year prior. Within a US retail market in which only mobile shopping accounted for 1% of total sales, Diapers.com is seeing a thriving trend as moms are going mobile. Moms are seeing the convenience in fast delivery when they run out of not only diapers, but other baby products like baby food, baby wipes, formula, and more.

"Moms send us stories all the time of nursing her baby at 3 a.m., realizing she's almost out of diapers or some other essential, placing an order with us through our app, and having the package show up at her door later that day," commented Michal Geller, a senior vice president of marketing and business development for Diapers.com. He went on to say, "Same-day delivery is a game-changer for busy moms". Most of the mobile shopping is happening from home or at work, not on the go. "Many of our customers cite that they place orders on their Diapers.com app while rocking or nursing their baby," Geller added.

The article mentions how the diaper market itself is forecasted to reach $52 billion worldwide by 2017. This is just one dynamic of a vast baby retail market, and the growth in one product will certainly affect another. Another relative forecast is how online retail overall is expected to reach $500 billion by 2018. With these figures, it's not a coincidence that Amazon made the move to buy Diapers.com and its family of sites — Soap.com and AfterSchool.com — for $550 million in 2010. Diapers.com now has access to Amazon warehouses, making their supply chain for delivery even more effortless to go along with its' popular app.

The app is specifically designed for one-handed use, which is great for moms. Customer shopping carts also stay connected to their account throughout the browsing process, even when toggling between laptop and smartphone. Geller mentioned that tablet use has "decreased significantly" in spite of its' mobile growth within the past year. "The modern mom — I see it from my wife and from my wife's friends — the phone has become such a useful tool to have at her side and in her pocket and in her hand. We're going to continue to see growth in that area. We absolutely believe that the phone is mom's co-pilot to some degree. To the extent that we want to be her best friend, we see those things go hand in hand", He said.

Diapers.com isn't the only retailer involved with same-day delivery. Google, Wal-Mart, Petco, Target, and more have all decided to dive into meeting on-demand shoppers where they are. Therefore moms have plenty of retail options, as well as couriers to deliver to them. A same-day courier like A-1 Express can help moms get baby products fast and retailers has a superior delivery partner to turn to. The New York Courier has a national footprint and the same-day logistics expertise needed for mobile shopping now and in the coming growth years ahead.

Reference: 7.8.15, www.mashable.com, Adrienne LaFrance, Mobile shopping's early adopters: New moms

US Same-Day Delivery Expected Growth Over $4 Billion

Even a decade ago, no one could fathom that online retail could reach a point in which it could get an item to a customers' front door within hours. It is now highly attainable and many retailers have rolled out same-day delivery in the US by the masses. Google, Amazon, Macy's, Ace Hardware, Wal-Mart, and more have all literally bought into it. Yahoo Finance mentions Business Insider's BI Intelligence research service is forecasting that the service will leap from $0.10 billion in 2014 to $4.03 billion by 2018.

If BI's forecast is correct, there will be hefty dividends for the retailer that snags a thriving same-day delivery model now. It seems this is what a number of big name retailers are attempting to do, as shoppers opt out of going through the hassle of getting dressed and hitting the stores. They rather stay at home or remain at their jobs, and for a small free, be able do other things with their time.

Physical store retailers have taken notice also. Wal-Mart is a retailer that has implemented same-day delivery in several major US cities. WalMartToGo is the name of their online pick-up option, where shoppers can buy their items online and Wal-Mart will have them ready for pick-up when they arrive. For years the retail giant has depended on its' low prices to draw customers and keep them loyal. However, e-commerce has been the steady game changer and every retailer knows it. This is resulting in same-day delivery being so vital to competing, as technology makes instant shopping easier and easier.

All of the omni-channels are being mixed, making the best effort to create a seamless experience between the online store and the actual physical location itself. It is the convenience factor at its' best. Amazon knows it is facing higher contention from physical stores and startups utilizing e-retail to emerge as a legitimate option for customers. If physical stores, which have even partnered with startups for same-day delivery, crack the code to the service, Amazon will have some market challenges to come. This has all the reason why Amazon recently made same-day delivery free for all of its' Prime members. A member's annual $99 fee is all they pay, saving them that $5.99 per delivery. This a small price for Amazon to pay to maintain loyal customers, and they may gain more

For a forecast like BI to have researched and expects to occur in the near future, it is sure to cause more than just popular retailers to jump into the same-day delivery race. In fact, it already has with new startups creating innovative ways to get shoppers the convenience they are searching for. Same-day delivery is making shopping as fast and simple as the debit card, which was anticipated to change how we do business--and it did. Now, it's same-day delivery's turn to revolutionize e-commerce.

Many retailers providing same-day services, are choosing to create a courier network or partner with a same-day courier like A-1 Express to optimally perform their deliveries. Since the New York Courier has all of the logistical expertise and driver fleet to match, it makes sense for retailers to outsource. A-1 Express has a national footprint that will exceed the expectation of big retailers that need quick implementation and is a courier that can handle long-term growth.

Reference: 6.5.15, Yahoo Finance, Matilda James, Why Same-Day Delivery Is Imperative in E-Commerce