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

Amazon Launches Free Same-Day Delivery In California

If someone would have told you that same-day delivery was free, you probably wouldn't believe it. With all of the investment into seamless omnichannel creation that's behind supplying online and store products to shoppers and all of the upfront costs of launching in big cities, you wouldn't think a company could conceivably pull it off. However, retailer Amazon appears to have done it.

The Los Angeles Times has reported that Amazon is making same-day delivery free in 14 metropolitan cities the US. The initial launch will be in California cities in the Southland, including those in San Fernando Valley to Irvine, as well as the Redlands and Moreno Valley in the east. Prime members that make a $35 purchase and up by noon, will receive their online order by 9pm that same day. The initial rollout includes more than 1 million items, such as books, games, cooking tools, and electronics.

Amazon has added 50 fulfillment centers around the world within the last four years. It also has 109 total warehouses to handle the millions of orders it has. With its' vast locations strategically aligned primarily to service major US cities, it has now become feasible for the e-retailer to offer the service free. Chris Rupp, Amazon's vice president of Prime, stated that the free service is "a real-life changer". It will be a huge asset for shoppers that need items right away, from birthday gifts to household goods.

"These things just pop up in life, and this is meant to simplify our customers' lives," Said Rupp in an interview. "Some of the feedback we've gotten from customers is it already feels like we're living in the future." It does appear that Amazon is going future in every sense. The retail giant is one step closer to same-day delivery drones, which the company stated would be probable to deliver packages within 30 minutes. The Federal Aviation Administration has recently approved Amazon to conduct further research on drone use. This would be the very first type of delivery method of its' kind.

This could be considered a soft launch in scope of Amazon's bigger plan. The article stated that more major US cities will receive the service also, including the San Francisco Bay Area, Baltimore, Boston, Dallas-Fort Worth, Indianapolis, New York, Philadelphia, Phoenix, San Diego, Seattle-Tacoma, Tampa Bay, Washington DC, and Atlanta. There will be more than 500 cities and towns included at the launch as well, plus more added in the future.

Google is only one of the many fierce competitors running against Amazon. Google Express is expanding, as well as Wal-Mart, start-up company Deliv, Macy's, Uber, and others are all on the same current seeking to bring same-day success to their shores. It's inevitable that same-day delivery is going to be necessary in order to compete online. A same-day courier like A-1 Express can be a partner of any retailer desiring to implement the service fast. The San Francisco Courier has a nationwide footprint to accommodate broad expansion for any retailer in need.

Reference: 5.28.15, www.latimes.com, Andrea Chang, Amazon rolls out free same-day delivery

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

Experts Ask Will Same-Day Delivery Last?

So many companies are going after same-day delivery, as tech gadgets take online shopping to a new level in business e-commerce. Online retail is forecasted to grow to $500 billion by 2018 and the current pace is strong. Technology is supporting the reality of a more convenient shopping experience for consumers, and retailers expect same-day delivery to bridge the gap. From Amazon to Macy's, retailers are engaging more and more major US cities with the service. However, some wonder is same-day delivery as viable as retailers are making it out to be.

In fact, a recent Wall Street Journal article discussed how same-day delivery could be overblown and that it really isn't worth all of the investments that big retailers are putting into it. Satish Jindel, president of SJ Consulting Group, stated, “People don’t have a need for speed, they have a need for predictability”. Jindel is a logistics expert that helped establish small-package carrier Roadway Package System, which was acquired in 1998 by FedEx. Based on a 2013 survey by researcher comScore, 92% of online shoppers were willing to wait four or more days for free delivery, versus paying to have their shipment faster. Therefore, speed could be trending right now, or it could be long-term and even revolutionary in the way we do everyday business.

Also in the survey, shoppers said they would choose the most economical shipping option three-quarters of the time, but the fastest shipping option only 1% of the time. Head of the supply-chain and logistics consultancy for Jones Lang LaSalle Rich Thompson, weighed in on the popular service stating, “same-day delivery is not a requirement by consumers…If you offer it, people will accept it”. He also mentions same-day delivery is just a “a marketing differentiator”. This essentially means that shoppers don't mind utilizing next-day delivery and second-day delivery, but anything faster enables retailers to compete.

Regardless of the how some experts feel about same-day delivery, its' clear that a number of retailers, both brick-and-mortar and web-based only, have set their sights on implementing it and have the investments to prove it. An example is Amazon. The retail giant has picked up the pace with its' same-day program, recently implementing the service in Baltimore and Miami. Late last year, Amazon launched same-day delivery in New York City, Indianapolis, Washington DC, Philadelphia, Dallas, and Atlanta.

Jindel also mentioned how same-day delivery was the most expensive service option for consumers, and as a result, the costs is too much to pay to get something faster. However, a viable option to lower same-day delivery prices is to partner with a same-day courier like A-1 Express that has the expertise to create optimal courier logistic solutions. The Los Angeles Courier has a national footprint and can quickly implement a cost-effective same-day delivery program. It makes sense for all physical store and web-based retailers involved in same-day delivery to partner with a nationwide courier, which can assist with last-mile deliveries at for their everyday shipping.

Reference: 5.4.15, www.wsj.com, Loretta Chao, Is Same-Day Delivery Overblown?

Toys-R-Us Focuses On Web Sales And Fulfilling Orders From Stores

When we think of toys, the first name that comes to us is no other than Toys R Us. A toy retail leader globally that has had to make the right adjustments to stay ahead, especially with more and more online competitors racing for market position. This is where Toy R Us decided to shift its focus last year, and for their web business, it's working.

Internet Retailer reported how the toy store's numbers from last year affirms it is on the right track on the web. Online sales went up to $1.23 billion from $1.15 billion in 2013, which is a 7% increase. Online retail represented 10% of Toys R Us' total sales versus only 9.2% in 2013. Toys R Us achieved the web sale improvements it was after, yet not the in-store sales to match, which decreased in the US by 1%. Store sales did increase by 1.8% internationally. As a whole, total sales in 2014 went down by 1.4%, from 12.54 billion in the year prior to $12.36 billion. This has called for changes by Toys R Us in order to do better this year.

Toys R Us CEO Antonio Urcelay commented to investors and analysts on all the changes the company has made to compete on all fronts. "We also made significant process and organizational improvements, addressing a number of important executional issues. As a result, during the year, global Internet sales continued to grow, benefiting from our strengthened omnichannel fulfillment model, U.S. margins improved due to disciplined promotional activity and inventory management, and customer satisfaction metrics confirmed that changes we have been making provided a better shopping experience in-store and online.”

One interesting figure from the report is the percentage of traffic Toys R Us is getting online. It stated that mobile growth is the most important driver of e-commerce traffic for the toy retailer, with 57% of its' digital visits have come from a mobile or tablet device. More shoppers have become comfortable with shopping online and even view it as a preferred way to shop, in addition to the ability to utilize a same-day courier like A1Express to get their products delivered fast.

The holiday season is big for every retailer and will be no different for Toys R Us, as the toy company plans on being ready to capture more sales this year. In the Toys R Us presentation, executives stated, “In the coming year, the company plans to further strengthen its omnichannel capabilities, including in-store pickup and ship-from-store execution, especially during the peak holiday season”. The more options for the customer, the better for any retailer to gain ground during the holidays. A number of retailers, including Toys R Us, have partnered with a courier to offer same-day delivery as a ship-from-store method.

Online retail is expected to grow to $500 billion by 2018. Couple this with technology advancements, and itseasy to see how e-commerce is the sure direction for any brick-and-mortar retailer to heavily invest in. A1Express is a New Jersey Courier that services nationwide and can aid any retailer meet the rise in on-demand delivery by shoppers, even fast shipping from Toys R Us stores.

Reference: 4.15.15, www.internetretailer.com, Bill Briggs, Web sales grow, but total sales dip for Toys R Us in 2014