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.

Will Retailers Charge For Same-Day Delivery?

It takes a lot of customers to not want same-day delivery to be a good option when they can't get to the store themselves.  The question is when shoppers do pursue to take advantage of the same-day service, do they like what they are being charged for it.  Online retail is forecasted to grow upward to $500 billion by 2018, therefore, shopping online will continue to be a source for revenue for retailers, yet will same-day delivery help make e-commerce more attractive to customers. 

The Denver Post recently discussed how customers like same-day delivery, but don't like paying the cost.  That is similar to any convenient item, such as the ATM, but there is a common need to use them.  Kozmos begin same-day delivery over a decade ago, but didn't have the wide use of technology to help throttle it's idea forward into a greater demand.  "I remember using Kozmo.com a decade ago," said Chicago TV producer C.J. Dugan in the article. "One night we ordered a tub of ice cream and the movie 'Pitch Black.' They showed up in about 30 minutes. ... It was before its time, I guess."  The desire is there for same-day delivery; it is the fee for the service that retailers have to pinpoint that will create the longevity success of it.

If free is what shoppers want, the only retailer coming close to offering free same-day delivery is Amazon.  What first started out in 14 Los Angeles metropolitan cities earlier this year, expanded to Chicago, Orlando and now is in 16 US markets.  "Over the past 18 to 24 months, Amazon has been pushing the bar.  If you're in retail, you have to step up to the new bar," said Daphne Carmeli, CEO of Deliv in the Denver Post article.  Deliv is a crowdsourcing  delivery company that partners with retailers and malls to perform same-day delivery for them.

One of Deliv's biggest partners is Macy's offers same-day delivery is major US cities including Seattle, San Francisco, Los Angeles, San Jose, Houston, Washington DC, Chicago, and New Jersey.  Macy's even has more markets offering the last-mile service than Amazon.  The retailer also has over 800 stores in which they can fulfill online orders from.  This makes Macy's one of th potential retailers that could really out do Amazone with its' same-day delivery models due to its' physical locations.

Macy's offers its' same-day delivery for $5 for orders over $99.  Amazon has been offering same-day delivery free for Prime members, which pay a $99 annual fee.  Shipping industry expert Satish Jindel stated in the report, "Retailers trying to compete with Amazon on the road Amazon created will always be at a disadvantage".  Free service is something that many retailers will have to strive for, in contrast to Amazon which is leading the pack.  Many retailers charge between $5 and $20 for their fast delivery service.

As the holiday season continues, shoppers are going to be given the option to have their online orders delivery same day.  Kohl's, BestBuy, Wal-Mart and more have all jumped into the same-day delivery race.  For retailers that are seeking to implement a fast delivery model, a Same-Day Courier like A-1 Express can partner with them and meet the convenient demand that their shoppers have. The Miami Courier has a nationwide footprint, enabling it to service the largest of retailers and businesses. 

Reference: 11.29.15, www.denverpost.com, Mae Andersen, Everyone loves same-day delivery, until they have to pay

BestBuy Dives Into Same-Day Delivery In San Francisco

It's the same BestBuy that we have come to enjoy that has joined the ranks of many big name retailers that are engaging in same-day delivery. Having to make a quick run to get that tech gadget from BestBuy may be a thing of the past, as fast delivery may be an everyday option for shoppers.

BestBuy has announced that it will begin testing same-day delivery in San Francisco and surrounding areas right before the holiday season begins. Black Friday is almost here and a number of retailers are pulling out all of the stops to get shoppers to choose their online products. Most retailers that dive into same-day delivery don't jump in alone. BestBuy is partnering with start-up service provider Deliv to perform the actual deliveries for it. Deliv utilizes a crowdsourcing approach for it's model, which local drivers in close proximity pick up and deliver online orders.

This is similar to department store leader Macy's and its' joining up with Deliv to provide same-day services. In 2013, Macy's timed their launch of same-day delivery right before the holiday season like BestBuy. Yet, Macy's aggressively rolled-out it's program in 8 major US cities: San Francisco, Los Angeles, San Jose, Houston, Washington DC, Chicago, New Jersey, and Seattle. Since then, Macy's has expanded into 9 more, totalling 17 markets that it offers same-day delivery. This is even more than Amazon's current reach in the US.

Kohl's department store decided to add to its' same-day program list last month, expanding into San Francisco, the Bay Area and Chicago. Before Black Friday, Kohl's will have same-day delivery in Los Angeles, Philadelphia, Boston, Brooklyn/Queens, Northern New Jersey, and Miami. The brick-and-mortar retailer has 1,160 stores in 49 states, just as Macy's roughly 885 and BestBuy has over 400 throughout the US. Just as Kohl's and Macy's, BestBuy will be utilizing its' stores to fulfill online orders the same day.

BestBuy is rolling out same-day delivery to compete against Amazon. What has retailers on their heels is the fact that now Amazon's is beginning to offer its' same-day delivery free. Its' free service was rolled out in 14 Los Angeles metropolitan cities earlier this year, and now has expanded to Chicago and Orlando. Amazon now has free service in 16 US markets and it probably will grow. The holiday season is the marker for launching the service. With Amazon's aggressive pricing model, retailers can't afford not to offer same-day delivery also.

It makes sense for retailers to offer same-day delivery because there is a market share that wants what the buy online fast, as well as the convenience of door-to-door service. A Same-Day Courier like A-1 Express can be invaluable for any retailer during the holidays. The San Francisco Courier can assist with deliveries, store returns, error shipments, and more. When a retailer needs a quick same-day logistics solution, A-1 Express can quickly develop and implement same-day delivery nationwide.

Reference: 11.3.15, PYMNTS.com, Best Buy Jumps On Same-Day Delivery Bandwagon

Kohl's Joins In, Launching Same-Day Delivery In Six More Cities

When it comes to same-day delivery, it appears that popular department store leader Macy's is not going to be having all the fun. Another well-known retailer has decided to make a go of it right before the holidays.

Kohl's released on Monday that it's rolling our same-day delivery in several major US cities in the coming weeks, adding to the list of its' current service areas in San Francisco, the Bay Area and Chicago. NBC reported that Kohl's will add six more, which includes Los Angeles, Boston, Brooklyn/Queens, Northern New Jersey, Philadelphia, and Miami. Having same-day delivery up and running in this time frame will mark it ready for shoppers before Black Friday in November.

"The consumer's expectation is clearly shifting increasingly to the "I want it now" model, and department stores that are able to oblige will see significant increases in sales," said Giulia Prati, a senior research analyst at L2 Inc, citing an eMarketer report. He mentioned in the article that e-commerce sales account for 15% of a department store retailer's revenue. However, this number does spike up during the holidays.

There are figures to back that up as well. According to an August emarketer report, e-commerce sales are expected to increase 13.9% in November and December, and overall sales are expected to increase 5.6% in the same period. Therefore, retailers will miss out on potential sales because more than likely some of those shoppers will want their online items the same day. Retailers can partner with a Same-Day Courier like A-1 Express for quick implementation of a same-day delivery program and the Boston Courier performs the actual service for them.

Koh's is partnering with Deliv to get the new endeavor off the ground. Deliv is a start-up company, similar to Uber, in which it contracts drivers to pick up and deliver online orders to shoppers. Whether from malls or physical retail stores, Deliv will act as a courier for Kohl's, in addition to Macy's now. Macy's aggressively launched same-day delivery late last year for the holiday season. Currently, Macy's has 17 major US cities in which it offers same-day delivery. Other retailers like Google, Wal-Mart, BestBuy, Toys-R-Us, Walgreens, Ace Hardware, and more have a same-day deliver service also.

The front runner that many retailers are competing against is Amazon. The robust retailer not only has an efficient fast delivery model, but also is starting to make it free. Amazon rolled out free same-day delivery in 14 Los Angeles metropolitan cities this year and this could expand into the other cities that it has service in. It services are offered in the San Francisco Bay Area, Dallas-Fort Worth, Indianapolis, New York, Philadelphia, Phoenix, San Diego, Baltimore, Boston, Tampa Bay, Atlanta, Washington DC, and in hometown Seattle-Tacoma.

The expansion of same-day delivery by Kohl's is needed to compete with Amazon, Google, and Macy's that already are meeting the demands of this market. Whether a retailer joins with A-1 Express or another provider for same-day delivery, more than likely, others will begin to launch the service this year too.

Reference: 10.14.15, www.nbcnews.com, Reuters, Same-Day Delivery Wars Heat Up As Kohl's Adds Six More Cities

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