Postal Service Hits Gains Among Losses, Can Use Same-Day Delivery

The US Postal Service has had its’ share of challenges in the recent years. However, there are some positive signs in the midst of the heavy drought. This past Friday the agency reported a $740 million loss in the three months up to June 30. It is a large figure, yet it is far less than what it loss in 2012. The USPS reported an overwhelming $5.2 billion loss last year. What is being found is many customers are not using first-class mail like they use to. Many bills are being paid online and the increase in technology is creating more convenient ways to handle everyday business.

One of the issues fueling the fire is the Postal Service health care benefits for future retirees, which is a pre-fund requirement by the US Government. These are yearly payments. The USPS currently owes $5.6 billion to fund these health care costs. This is actually only half of what the agency owed last year, which is due to the company withholding its’ 2011 payment. This year’s payment is due September 30th and the Postal Service is expected to default again. It has also depleted its’ $15 billion taxpayer loan that was given to assist with its’ debt.

The USPS needs some relief. It has attempted again and again for Congress to release the yearly health care benefit requirement to stop the losses. The agency also is requesting to end Saturday delivery of letters. Postal Service CFO Joe Corbett stated in the report, "Without comprehensive postal reform legislation signed into law, our hands are tied and we expect multi-billion dollar annual losses to continue". Without the pre-fund healthcare benefits, the USPS would have generated a $660 million profit in the third quarter this year. Not only is this looming, but its’ workers’ compensation benefits are due in October, which can affect its’ ability to pay its’ operational bills.

The pursuit for reform is not the only strategy the US Postal Service is engaging in to make a comeback. It knows it will require innovation and stepping into new business waters to really thrive again. The agency has launched a new service to compete will the demand for faster and more convenient mail deliveries. It has launched Metro Post, which offers same-day delivery. It is currently being tested in San Francisco. Online business is rises annually at 17% and many companies are aware this is a avenue for growth also. This is a great step for the Postal Service, following the likes of companies such as Wal-Mart, eBay, Google, Macy’s, and others seeking how to meet online demand via same-day delivery.

The USPS does appear to be going in the right direction, especially when it comes to same-day delivery. This is the future of any type of delivery that involves small packages and envelopes that customer need on a daily basis. Same-day couriers such as A-1 Express is able to assist any customers with a same-day delivery solution and deliver fast. The Postal Service can partner with the Portland Courier and become more competitive with all its’ deliveries.

Reference: 8.9.13, CNN Money, Jennifer Liberto, Postal Service loses less, but cash crunch looms

E-Retail Jumps 16% In 2nd Quarter, Retailers Can Grow With Same-Day Delivery

E-Retail is where many businesses are turning to for growth. Many customers are seeking to save as many cents as they can, including when it comes to making their purchases. Retail companies are doing the same and e-retail is how to get it done. It is a great combination between retailer and consumer, in which every one is winning.

As a result, it is reported by Internet Retailer that e-retail sales increased 16% in the second quarter of this year. These figures were gathered from web measurement firm comScore Inc. The figures for US online spending rose to $49.84 billion for the quarter, versus $43.15 billion in the same quarter in 2012. This increase follows a great start during the first quarter of the year with a 13% growth as well. This also marks the 15th consecutive positive quarter for e-commerce growth and the 11th consecutive quarter with double-digit growth.

Interestingly enough, the report showed that consumer spending via smartphones and tablet increased 24% this quarter, versus last year. This equates to $4.7 billion for the quarter. Coined as mobile commerce, or m-commerce, was measured and provided by comScore only for the second time. The company only started reporting the figures in the first quarter this year.

This growth set the pace for the entire year and the remainder of it will more than likely be no different, especially with the holiday season approaching. In the report, comScore chairman Gian Fulgoni stated, "increased spending growth for the quarter not only reflects the long term share shift towards digital commerce, but also the near-term signals of sustained improvement in consumer sentiment. This strength is particularly significant since the second quarter tends to be seasonally lighter for e-commerce, and, as such, represents a positive indicator for the back half of the year.”

As the year moves on, there may be new strategies e-retailers put in place to grab as many shoppers as they can. One online retail strategy retailers are implementing is same-day delivery, making it hard for consumers to resist their online deals. Large companies, such as Wal-Mart, Target, Macy’s, eBay, and others are all testing same-day delivery on various levels throughout the US. Many experts agree that even Amazon is building distribution centers closer and closer to its’ shoppers, enabling the retail giant to support some type of same-day delivery solution.

There is no doubt a developed order fulfillment strategy is going to be key in the months ahead. Same-day couriers such as A-1 Express are superior as they come regarding getting your online products into your customers’ hands fast. A-1 Express has a national footprint as well, positioning the Los Angeles Courier to meet any retailer same-day delivery needs. A-1 Express can develop a complete nationwide courier logistics solution that fit your e-commerce goals. The expectations are high in e-retail and there would be nothing better than to partner with A-1 Express to compete in the months to come.

Reference: Internet Retailer, Thad Reuter, E-retail rises 16% in the second quarter

EBay Announces Expansion of EBay Now Same-Day Delivery Service

Look out Amazon, here comes another counter in the fight for same-day delivery. EBay is competing with same-day delivery in the world of e-retail. Up to now, the online giant started testing the service in certain cities, making sure the service could be profitable and work all the bugs out. It appears eBay has made plenty of headway in creating a same-day delivery system that works and is starting to expand.

EBay has announced the company is expanding eBay Now into more cities. The selected cities up to date have been San Francisco, San Jose and parts of New York City. The new cities eBay is venturing into is Brooklyn, Queens and the larger bay peninsula areas. The report also stated other city expansions will be added later in the year in Chicago and Dallas. These both are big, major US cities that have the demographics to make eBay Now effective. The service consists of only paying $5 to have your online order to be delivered within that same day.

It will also for be expanding for pc and mobile device shoppers. The move was based upon consumer demand, which from their testing, must have proved to be stable enough to launch the service to pc users. EBay local and mobile vice president Dane Glasgow stated in a blog, “More than half our orders are made between 9 a.m. and 5 p.m. when our customers are usually at work. We want to make it easy for consumers to access eBay Now on any device.”

On the heels of e-commerce is m-commerce. With so many mobile devices available and in high use today, consumers can make online purchases conveniently from wherever they may be. Online business is growing at 16%, which may increase to 17% this year. EBay is not oblivious to the fact that consumers are going to want their online purchases delivered to them as fast as they order it. This is why same-day delivery is growing and being implemented, not only in the US, but worldwide.

Amazon and Google are even in hot pursuit of some from of same-day delivery service. Amazon is building distribution centers closer and closer to consumers in an effort to provide quick delivery of its’ online orders. The company has also just expanded Amazon Fresh online grocery delivery service last month to Los Angeles, which use to be in Seattle. More than likely, this is the first of many expansions for Amazon, as it continues to compete against eBay.

EBay is not performing the delivers by itself. The online giant is partnering with same-day couriers like A-1 Express to handle its’ same-day delivery. This New York Courier is able to implement fast and efficient same-day delivery solutions. A-1 Express is a viable option for companies seeking to expand its’ e-retail business and would like to have a national footprint to meet customer demand. Couriers are an excellent choice for same-day delivery and can help eBay capture the sales growth being presented by eBay Now.

Reference: Internet Retailer, 7.22.13, Thad Rueter, eBay Expands Its eBay Now Same-Day Delivery Service

FedEx And UPS Threatened By New E-Commerce Solutions And Same-Day Delivery

E-Commerce is growing bigger and having more impact on the way we do business each year. Because of its’ 16% annual growth, more companies are focusing in on innovative business strategies to meet the demand e-commerce creates, especially relative to shipping. Major e-retailers are even implementing optimal package delivery services themselves, which is keeping shipping giants like Fedex and UPS out of the loop.

Reuters reported Fedex and UPS have new threats in regards to e-commerce and may indeed need to pay attention to what is happening in the industry in the US. E-Retail leaders are not depending on Fedex and UPS like they use to. They are actually creating various delivery solutions, such as building warehouses in various locations close enough to fulfill their own deliveries. Amazon is aggressively implementing this same model, building distribution centers closer and closer to its’ customers. It equates to saving millions in shipping costs. The company has also increased usage of its’ own delivery trucks.

Global retailer Wal-Mart is making its’ own moves in the e-commerce arena as well. Instead of fulfilling online orders from its’ warehouses hundreds of miles away, Wal-Mart is simply shipping directly from local stores closest to the customer. The article stated Wal-Mart has being doing this for years and has now decided to increase their online store shipping program to 50 locations. This is double the amount it already has. "We are at least two zones closer by utilizing the stores," Anderson said. "The closer we can inject the order into our network, the more this saves the customer time and reduces what it will cost us to get it to the customer."

Wal-Mart is even testing same-day delivery to its’ shoppers in various cities nationwide. Other retailers such as Macy’s, BestBuy, and Target are taking the same delivery course, pursuing to keep their sales up at their brick-and-mortar stores. M-Commerce, or Mobile-Commerce, via ipads, tablets, etc., is playing a role in the increase of online sales. This has ultimately fueled the revenue for e-retailers to where it now makes sense to invest and deliver themselves. Fedex and UPS are essentially being cut out of the picture.

"UPS and FedEx are not only watching this, they are likely concerned about it. Big companies like Amazon and Wal-Mart will dictate which direction this goes. Those are the companies that FedEx and UPS need to fill their planes and trucks,” said Lou Tapper, an executive at third-party logistics company Longistics and former FedEx employee for 18 years. In the past, the increase in e-commerce sales would have been more guaranteed revenue for FedEx and UPS. This is not the case anymore.

E-Retailers are now seeking to get their online orders delivered faster than what Fedex and UPS can offer. Same-day couriers like A-1 Express being partnered with to develop courier logistic solutions to make their delivery systems work. This Portland Courier has a national footprint and the courier expertise to keep up with the growth of e-commerce.

Reference: 7.14.13, Reuters, Alistair Barr, Analysis: New e-commerce strategies threaten UPS, FedEx

VF Corp Expects 25% E-Commerce Growth, Could Need Same-Day Delivery

There is nothing like a company that knows where it going, how it will get there and has the results to prove it. E-retailers are pursuing to stake their share of the online market, which is revolutionizing the way we do business. VF Corp is showing they understand e-commerce and the future of it. Their online sales have continued to increase and show no signs of slowing down.

VF Corp has plans to grow its’ e-commerce sales 25% annually through 2017, reported Internet Retailer. The company’s goal is the reach $17 billion in global sales by that year, which forecasts $4.4 billion of that figure will consist of retail store and e-commerce. $17 billion is an aggressive projection; however, they have the numbers to back it up. VF brought in $215 million in online sales in 2012, compared to $177.9 million in 2011. We see a steady progression of online business and with the right direct-to-consumer sales strategies, VF’s goal is attainable.

VF is the parent company of 25 brands, including Wrangler, The North Face, Lee, Smartwool and Ella Moss. The growth strategy the company plans to implement consist of all of its’ brands increasing its’ e-commerce sales. VF operates 1,129 stores currently, yet plans to build an additional 645 stores by 2017. With more store locations, this can make VF more effective in the order fulfillment of online orders. Same-day couriers such as A-1 Express is a viable option to partner with to deliver online purchases that are made via e-commerce.

“Each of our brands is in the process of building a road map, bringing them to their state of excellence,” said vice president of VF direct/customer teams, Michael Gannaway. Gannaway said in the report these brand road maps included what could improve areas of marketing, social, usability, and fulfillment. All of these areas are vital within online retail and to make strides against the competition. Many large e-retailers, such as Wal-Mart, eBay, Amason, and more, are pursuing same-day delivery to meet the fulfillment aspect of online retail.

The e-commerce industry is expected to rise from 16% to 17% this year and experts forecast it will continue. One main driver is the increase in the use if smartphones, iPads, tablets, and iPhones. Technology has created the ease and comfortability needed for shoppers to engage more in online purchases. Technology will continue to grow speedily, and e-commerce will grow right along with it. With this type of growth, online demand for products to be delivered to shoppers faster is becoming pivotal to e-commerce. This is why many large e-retailers worldwide are being innovative with delivery solutions, which also can provide an edge over competitors.

VF Corp has a number of brands to develop e-commerce for and A-1 Express can assist the fulfillment of all of them. This nationwide courier has the transportation expertise to create a courier logistics solution to fit their e-commerce business model. With the emergence of same-day delivery of online products, it is inevitable VF will need a superior delivery system. A-1 Express is able to quickly implement same-day delivery for VF or any company to help meet online demand.

Reference: Internet Retailer, Kevin Woodward, VF expects e-commerce sales to grow 25% annually through 2017