Amazon's First Quarter Revenue Goes Up 23%, Still Will Advance Delivery System

There is one online retailer that has it's grip on the industry, and it doesn't appear it is going to let go any time soon. Amazon is doing many things right and continues to impress experts at how its' branding, marketing and services is right in line with what shoppers want. So far this year, the retail giant has posted excellent results, increasing their revenue to 23%.

Internet Retailer discussed the recent Amazon results, as the retailer seeks to improve every facet of its' business. Its' revenue went up to $19.74 billion this year, which is an increase from 22.8% during the same period in 2013. Within that revenue figure, Amazon's net product sales were $15.70 billion and $4.04 billion originated from outside merchant commissions. Some other notable figures included a net income of $108 million in the first quarter, compared to $82 million last year.

"Based on the recent expansion of Amazon Fresh and the launch of Amazon Dash and Amazon Pantry, it is clear Amazon is increasing its focus on building a more robust consumables business, which we think could have broader implications for traditional hardlines retailers like Wal-Mart, Target and even Costco," stated Wells Fargo Securities analysts in the article. Amazon launched Prime Pantry early this year. The service gives Prime customers a 4-cubic foot box to fill up to 45 pounds of items within Amazon's new pantry section. Customers pay a flat fee of only $5.99.

Amazon Dash is an interesting service device for AmazonFresh customers to use for their grocery shopping. Items can be added to their online shopping list via voice commands or bar code scanning. AmazonFresh, which originated in Seattle, has now spread to a small amount of other US cities and there are more cities to come. Wal-Mart is probably the largest retailer competing with Amazon on this front, as it has launched same-day delivery of groceries in US cities as well.

The retailer does desire to make their delivery network better and better. UPS had a negative impact on Amazon's Christmas season last year and shoppers were not pleased with receiving their packages late. Amazon is not wanting this to happen again, therefore, their delivery system has to be efficient. The report mentioned how Amazon was testing a "last-mile" delivery service, in which it will use its' own trucks and drivers to transport products the final distance to their customer destinations. Experts agree that Amazon is pursuing to have their fulfillment centers as close to metro areas as it can.

Recently, Amazon had a discussion in the Forbes article about revamping their delivery network as well, which is what the company expressed it is going to do this year. It did tackle the idea of utilizing a same-day courier to accomplish their same-day delivery initiatives. A same-day courier like A-1 Express has a national footprint to match such a robust online retailer like Amazon. The Miami Courier can optimally perform "last mile" deliveries, even redeliveries and returns. The courier can transport various products, even groceries, within hours. This is what Amazon is looking for, especially with AmazonFresh.

Reference: 4.24.14, Internet Retailer, Thad Reuter, Amazon's revenue increases nearly 23% in Q1

Projections Say Amazon's Same-Day Delivery To Reach 31% of US Consumers

One thing about Amazon, they are not holding back any punches when it comes to its’ e-retail growth. This is why the company is number one, doing it with power and ease. In recent years, many experts have suggested that Amazon is in the race for more same-day delivery just like every other big retailer, yet it is quietly making its’ moves. However, last year Amazon became quite outspoken about its’ plans involving same-day delivery. Amazon CEO Jeff Bezos discussed at that time, same-day delivery via drones. This was a huge statement and Bezos meant all of it.

That alone let the world know just how serious Amazon has been about getting its’ products in the hands of its’ consumers fast. Now, a recent projection shows that the retail giant will be able to provide same-day delivery to 31% of its’ customers by 2015. The projection comes from global supply chain and logistics consulting firm MWPVL. President and CEO Marc Wulfraat released the projections. At a Wells Fargo Securities webinar, Marc stated, “The concept of same-day delivery is quickly becoming a competitive requirement rather than a nice-to-have service in key markets such as Los Angeles, San Francisco and New York, where people are willing to pay a premium for this service”.

He also added that he felt Amazon wants to offer same-day delivery in the top 40 North American cities by population and that would give about half of US consumers access to same-day delivery. Amazon has not commented on the MWPVL projections, but they do make a lot of sense. Amazon’s Local Express same-day delivery program currently operates in 11 cities and metropolitan areas. Those cities include New York, Chicago, Boston, Philadelphia, Las Vegas, Washington, D.C., Phoenix, Seattle, Baltimore, Indianapolis and the metro area of San Bernardino, CA, according to Amazon. These cities give Amazon access to 21% of the US population. Therefore, it appears with simply more growth, the reach will expand to 31%.

Earlier this week, Bezos released his annual shareholder letter, in which he promised more “innovation” in fast deliveries, including the use of drones. The letter also said Amazon’s plan to expand Sunday deliveries “to a large portion of the US population” this year. He did not mention specifically same-day delivery. Amazon partnered with the US Postal Service in November of last year to launch Sunday delivery in New York City and Los Angeles. With the physical assets of the USPS and its’ need for revenue, this relationship will probably expand.

Amazon states it operates over 40 US distribution centers. This is what will be one of the major keys for Amazon to successfully offer the fast delivers that its’ after. Same-day couriers like A-1 Express can become a partner with Amazon to make their same-day delivery plans a reality. This San Francisco Courier has a national footprint and can help Amazon expand its’ current Amazon’s Local Express same-day delivery program quickly. There’s nothing like partnering with a company like A-1 Express, which is an expert in same-day delivery. A-1 Express can also be a great option for fast customer order replacements, delivery errors and returns.

Reference: 4.11.14, Internet Retailer, Thad Reuter, Amazon’s same-day delivery could soon reach 31% of U.S. consumers

The Tmall Supermarket Grows %400, Delivers Products & Groceries Same-Day

Online retail has really become a new launching pad for many retailers that are having to make their business go to the next level. It’s a way to get your company from making small amounts of revenue due to low market coverage, to exploding within your industry, all because you have online exposure. It also allows companies to perform a variety of logistical approaches, especially when it’s necessary to work with other retailers and consolidate product orders. This is exactly what is happening for China-based retailer Alibaba, which has created a different approach to generate the kind of sales its’ looking for.

Internet Retailer recently reported how Alibaba is using e-commerce to deliver to shoppers all the goods they need from a number of sellers, all at one time. Alibaba Group Holdings hosts 70,000 online storefronts within their Tmall Supermarket or chaoshi.tmall.com. The online retail site generated $49 billion in sales in 2013. The Tmall has grown exponentially since its’ 2012 rollout. 2013 was a breakout year, growing at 400% and Alibaba expects 2014 to be the same.

The sales have definitely come a long way. A Tmall spokesman stated in the article, “the reason is that consumers like to purchase from different grocery stores. We can’t aggregate the orders at that time so that the shipping costs turn out to be too expensive for consumers who place multiple orders”. This was before 2012, when the company had not tried their new approach. Chinese shoppers have really bought into the Tmall Supermarket and the site retailers have as well.

These storefronts are operated by a variety of retailers, Chinese and foreign. What was discovered was that shoppers would buy their general products from different sellers, however, they did not do the same with their grocery purchases. For example, they would buy their milk from one online storefront, but their rice from another. Alibaba realized that it needed a different online approach to make it work. The retailer decided to create a Tmall Supermarket warehouse, in which all of the storefront sellers would ship their groceries to their location. From there, Alibaba would have the shoppers’ entire order consolidated and delivered to them at one time.

The warehousing is the key ingredient that makes the Tmall successful. Alibaba has outsourced to logistics management company Guangdong ALOG to handle this aspect of chaoshi.tmall.com. ALOG manages warehouses with 200,000 square meters of space across China. From the warehouses, the Tmall sells roughly 20,000 products, including cosmetics, home furnishings, household cleaning goods, food, beverages, and more. This is a great lesson for any company that may just need a shift in their online retail approach.

With every online retail business, whether in the US or elsewhere, has to be an effective delivery system. Tmall performs its’ own same-day delivery, charging around $2 per order and free delivery for orders over $15. A same-day courier like A-1 Express is a viable option for online retailers that can’t perform their own deliveries. The Boston courier can also help with fast returns and correct delivery errors.

Reference: 4.4.14, Fortune Magazine, Dan Mitchell, Next up for disruption: The grocery business

Staples Increases Investment Toward Online, Same-Day Delivery Could Be Next

With e-commerce continuing to show its’ muscles in the business world, it is no wonder more and more companies are shifting their focus toward it. It use to be unthinkable to shut down your brick-and-mortar locations to make a greater investment into the web, until now. This is exactly what long-time office supply giant Staples is taking strides in doing, in order to keep up with the big changes overall that are occurring for companies to grow right now.

Staples, in fact, has plans to cut costs by $500 million and has a goal to close up to 225 North American locations by 2015 reported the Internet Retailer last week. This is about 12% of its’ 1,800 stores across the US, which as a whole, is a big move by Staples. The retailer clearly is serious about making the necessary changes to compete. Their number of products offered went up fivefold, however, sales only increases slightly by 1.4% in 2013. This equated to a total sales decline of 11%.

The interesting figures that could have sparked the shift by Staples is in spite of the low overall sales growth, Staples.com actually increased its’ sales by 10.4%. CEO Ron Sargent agrees that their retail sales are shifting toward online and that’s the direction the company is going in. He stated, “A year ago, we announced a plan to fundamentally reinvent our company. With nearly half of our sales generated online today, we’re meeting the changing needs of business customers and taking aggressive action to reduce costs and improve efficiency.”

There were some definite changes indeed that Staples implemented last year that showed its’ aggression to meet its’ online goals. The company ended the 2013 with 400,000 more online products available on their site then a year before. Staples also eliminated over one million square feet in space through various ways, such as store downsizing and relocating into more efficient space. Kiosks have been installed in stores to meet customer needs as well.

Ultimately, Staples wants sales to increase and it is making the necessary changes toward online business to make this a reality. E-commerce is something many other heavy-hitters in the retail world have made investments in to gear their business and services to what shoppers are attracted to. One of those measures is convenience, which companies like Google, Amazon, eBay, Target, and others have implemented same-day delivery, enabling them to deliver online orders to a shopper’s front door. Wal-Mart not only offers same-day delivery, but also store pick-up services for online orders. When a customer arrives, their order is already pulled and ready for them to easily pick up.

This can be another innovative change for Staples to be able to offer its’ online customers. The office company could offer same-day delivery as a shipping option at checkout and same-day courier like A-1 Express can perform their online deliveries. The Seattle Courier meets the demands that comes along with online retail, and shoppers can even be recommended by Staples to pick their online orders up for them.

Reference: Internet Retailer, Paul Demery, Staples shifts investment to the web

M-Commerce Growth Globally Will Create More Same-Day Delivery

There is no such thing as mobile commerce, or m-commerce, being a distant second to online shopping at home. Tablets, smartphones and other mobile devices, have all contributed to new trend of convenience, seeking to do your daily functions that were once limited to conducting in one location. Now, consumers can do it all, literally in the palm of their hands and from wherever they happen to be. It is no wonder the numbers are showing that m-commerce is increasing, not only in the US, but worldwide.

Internet Retailer has a recent report that discussed the impact m-commerce is having worldwide. 60% of global mobile consumers use their mobile device as the primary or even exclusive means to engaging online. This is accompanied with the fact that 83% of them said that they will purchase a product from their mobile device within the next 12 months. What once was seen insignificant and merely trendy, has emerged as a key factor to business growth. InMobi, a mobile advertiser, performed the survey, which included a broad base of 14,473 mobile device users globally.

InMobi’s 2014 Mobile Media Consumption Report, there were a number of countries surveyed, including China, France, Indonesia, South Korea, Nigeria, Germany, India, Malaysia, New Zealand, South Africa, Kenya, United Kingdom, and the US. The report showed that 48% of the respondents agreed that mobile commerce is the key channel affecting purchasing decisions right now. Whether at home or on-the-go, shoppers are engaging online at any time.

Other findings relative to m-commerce showed what users are doing with their mobile devices. 78% of those surveyed have downloaded mobile apps, 56% have visited an online retail store for more information, 44% have located an advertiser on a map, 43% have called an advertiser via the phone number on the ad, and 68% have visited the web site of an advertiser. In addition, 61% of mobile web users are now as comfortable with mobile advertising as with their TV or online advertising. This opens doors for online retailers seeking to draw shoppers their way. More that 52% of mobile users responded to mobile advertising as well.

M-commerce is not only having an impact on how consumers can shop in regards to accessibility, but also how e-retailers will get the product delivered to them. Companies like Wal-Mart, Amazon, Google, BestBuy, and more are all involved in some form of same-day delivery to meet the mobile commerce demand. Wal-Mart has partnered with top Chinese retailer Yihaodian to perform fast deliveries there as well. Smartphones and other mobile devices, are the top sources for internet access, such as Indonesia and India, which were surveyed.

With m-commerce, the possibilities are endless in regards to the convenience shoppers have at their fingertips. A same-day courier services like A-1 Express is the most quickest and viable option for companies that desire to get into the m-commerce game. The Boston Courier has a national footprint, able to perform same-day delivery anywhere fast. When partnering with A-1 Express, companies will be assured that as m-commerce continues to grow, they will grow with it.

Reference: 2.20.14, Internet Retailer, Bill Briggs, M-commerce is saturating the globe