Will Amazon Begin Same-Day Delivery Of Groceries?

There's no bigger online retailer than Amazon. The online giant has the lead competition for several years with innovative delivery and shipping methods, including Amazon Prime and Amazon Lockers. Its' product line has involved virtually any consumer product you could name and have it shipped quickly to you, with the exception of food on a major scale. However, from recent reports, it appears online groceries will be next on Amazon's list.

Reuters has reported Amazon will roll out an online grocery business expansion plan, which will incorporate the selling of food with high-margin item deliveries within the same order. Its' grocery business AmazonFresh is not new, but rather has been tested for at least five years in Seattle, its' hometown. Amazon has utilized its' own fleet of trucks to perform deliveries of fresh food products. With the testing of the service, Amazon appears to be ready to expand into Los Angeles this month and also San Francisco later in the year.

Experts approve of the move forward for the new online grocery business, apparently hailed to be tried and tested by Amazon. "Amazon has been testing this for years and now it's time for them to harvest what they've learned by expanding outside Seattle," said Bishop, chief architect at Brick Meets Click, a consulting firm. He continued, "The fear is that grocery is a loss leader and Amazon will make a profit on sales of other products ordered online at the same time. That's an awesomely scary prospect for the grocery business."

AmazonFresh will have the warehouse capability to accommodate the big move as well. Amazon will have new warehouses that can store one million general merchandise products, as well as refrigeration areas for food. The online company has no trouble building needed facilities to specific areas of the US to meet their online demand. Amazon has opened 20 distribution centers and 79 fulfillment centers worldwide as of 2013. This is not including an announcement to build three new distribution centers in Texas earlier this year.

The combination of food and retail products within one order is what will make the difference in making online grocery delivery successful. However, with this being food, the question still remains what effective method of delivery will be used to get these items in hands of online shoppers? It only makes sense that online groceries will require same-day delivery to make it work. Amazon will encounter online grocery chain competitors such as Wal-Mart, which is already testing same-day delivery within San Francisco and other US cities.

The key for AmazonFresh will be to deliver its' online food products cost effectively on a large scale and fast. Same-day couriers like A-1 Express will be just the right fit for the delivery demands nationwide it will require. The Los Angeles Courier has a national footprint, which will enable Amazon to have one partner for an optimal same-day delivery logistics solution. With its' courier expertise, A-1 Express will be able to provide quick implementation of food deliveries and keep up with ongoing online grocery service growth.

References: 6.4.13, Reuters.com, Alistair Barr, Amazon plans big expansion of online grocery business: sources

Wall Street Transcript Forecasts Consumer Demand To Increase For Same-Day Delivery

In recent years, there has been a growing pursuit of same-day delivery by online retailers. E-commerce is currently growing at an annual rate of 16% per year. With the use of mobile devices, such as ipads, smartphones and tablets, many experts forecast online business shows no signs of slowing down. As online growth increases, the option for same-day delivery is increasing as a viable option for online orders.

According to the Wall Street Transcript, same-day delivery will not only be a viable option, but will become a standard consumer demand within the e-retail industry. It has just published an internet services report, reviewing topics such as increased mobile content traffic, Chinese online monetization trends, internet infrastructure and services consolidation, an social networking economics. The report informs serious investors and industry executives of what is forecasted to come regarding certain sectors. The feature provides interviews with public company CEOs and Equity Analysts regarding the discussed industries.

Within the report, the companies discussed are online retailers involved in some level of same-day delivery and online shipping. Those included in the report are Amazon, Google, eBay, Nordstrom, Yahoo, and more. Within one of the report excerpts, an expert analyst discusses the outlook of the industry and what is to come for the online retail industry. One question the expert was asked to talk about was the next battle within the e-commerce war. The above mentioned companies are engaged in fulfillment and omnichannel capabilities within e-commerce. With online giants such as Amazon and eBay, the expert also discussed other players in the e-commerce war that will have an impact on the industry in the future.

Mr. Pitz offers insight on the companies and the impact of same-day delivery. One of his quotes from the report regarding online retailers was he stated, "We believe as companies including Amazon continue to build out their capabilities in same-day delivery, same-day delivery eventually becomes a have-to-have for the average consumer, although that customer may not even know it yet". He mentions same-day delivery will shift into the same scale of demand as two-day shipping, which Amazon launched years ago. Same-day delivery will become a value-added service to consumers.

He continued on regarding Amazon being a key player, driving the offer of the same-day delivery option to consumers. "So we believe Amazon will continue to raise the bar and provide consumers with the merchandise that they thought they would receive in two days, but actually receive in one day or less", stated Mr. Pitz. Amazon-owned companies such as Quidsi, has brands Soap.com and Diapers.com, which are successfully offering same-day delivery. Amazon also implemented in its' fulfillment centers what is called the Kiva System. This system is used to optimize small package shipments and improves productivity for shipping. With Amazon using this system, the company will continue to create efficiencies and ship faster.

The direction is clear that same-day delivery is creating a major revolution in the business world and brick-and-mortar stores have to make the shift. Large retailers such as Wal-Mart, Macy's, and Target are testing same-day delivery as well. Same-day courier services like A-1 Express can be partners of Amazon, Wal-Mart, or any other retailer seeking to provide same-day delivery. The Los Angeles Courier has a national footprint and can quickly implement a courier logistics solution for the increase of consumer demand for same-day delivery to come.

References: 5.21.13, Yahoo News, The Wall Street Transcript, Consumers Expected to Start Demanding Same-Day Delivery Shipping as an Increasing Number of Online Retailers Begin to Offer the Option

Senate May End Tax-Free Online Shopping, Lower Costs With A Same-Day Courier

Online shopping is growing at a very fast pace. From mobile phones to ipads, people have become more comfortable with shopping online in the recent years. There are a number of issues that have risen regarding online business and one of those is online sales tax.

Currently, states collect sales taxes only if the e-retailer has a physical store within that particular state. However, based on the beginning debate regarding the issue, this could very well change. Yahoo News reported an online sales tax debate has started this week, after the Senate passed a test vote yesterday. The Senate passed the test bill by a wide margin of 74 to 20. With this level of support continuing, the real bill could actually pass as early as this week.

Instead of online sales being tax-free for online retailers and having an advantage over brick-and-mortar stores, supporters feel it will level the playing field. "I believe it is important to level the playing field for all retailers," said Senator Mike Enzi, Republican of Wyoming, who sponsored the bill. "We should not be subsidizing some taxpayers at the expense of others." It will generate lost revenue on the state level. Also, President Obama supports the bill as well.

Opposers of the bill feel it will impose complicated regulations on retailers. EBay is one of them. To rally opposition to the bill, EBay president and CEO stated, "I hope you agree that imposing unnecessary tax burdens on small online businesses is a bad idea. Join us in letting your Members of Congress know they should protect small online businesses, not potentially put them out of business." Others in opposition are Senators representing states that have no sales tax.

EBay wasn't the the only online giant mentioned in the report. Amazon also weighed in and is in favor of the bill. "Amazon.com has long supported a simplified nationwide approach that is evenhandedly applied and applicable to all but the smallest volume sellers," Paul Misener, Amazon's vice president of global public policy wrote in a letter to senators. The bill will ultimately bring more revenue to the states in which the shopper lives in. Businesses that make less than $1 million per year will be exempt for the bill.

Whether the bill to end online tax-free shopping passes or not, e-retailers will need to continue to seek for ways to manage their costs. One way is using same-day delivery. Same-day courier services like A-1 Express are a viable option keep their shipping costs down, in the event online sales taxes do increase. This Dallas courier can perform same-day deliveries at a lower cost because of route optimization and transportation expertise. A-1 Express can create a courier logistics solution specific for any online retailer's same-day delivery needs.

Reference: 4.22.13., YahooNews, Stephen Ohlemacher, Senate bill jeopardizes tax-free online shopping

Sears Competes With Amazon With Fulfilled By Sears Program, Can Use Same-Day Courier

Many retailers are making changes in the way they do business, especially with the emergence of e-commerce and mobile retail. Order fulfillment initiatives are being sought after to meet the high online demand, not only from customers, but also between retailers. Sears is one example of a retailer rolling out a program that will meet the retailer order fulfillment demands and it just might work.

Internet Retailer reported that Sears Holdings will be launching Fulfilled By Sears Program. The program is designed to offer online and offline fulfillment services to other retailers in the US. It is going to be available to retailers who sell via Sears.com. “We have the ability to ship orders much faster and more cost-effectively than other sellers do based on our national footprint of stores and warehouses,” said Corporate Executive Vice President Imran Jooma. The Fulfilled By Sears is going to be a great move for Sears to increase their sales, as they take on expanding into warehousing services.

The new program will offer a pay-as-you-go service for all their retailers. This type of service will allow retailers to incur no fees unless they are storing product in the warehouse facilities. There will also be fees that will slightly differ for merchants that sell on Sears.com, from those that process orders outside of Sears.com. Both will have fees ranging from 45 cents to 60 cents per cubic foot. Merchants will enjoy a $1 per item pick and pack fee. However, outside client retailers will pay a $3 pick and pack fee. Merchants will pay a $39.99 monthly Sell on Sears plus sales commission to Fulfilled By Sears.

Fulfilled By Sears will provide shipping for their retailers as well. There will be an order-handling fee of $1.50 for ground, $7.50 for two-day shipments, and from 45 cents to $1.90 for next-day shipments. The higher fee for two-day shipments will be due for any air shipments retailers require for their order fulfillment. Their client retailers will have to handle having their product shipped to the Sears' fulfillment center.

Most notably about Fulfilled By Sears is it will be in competition against online giant, Amazon, which provides the same type of fulfillment services for their client retailers. Amazon has built distribution centers throughout the US and is set to roll out more this year. Many experts believe Amazon is gearing up to one day provide same-day delivery to its' customers in areas where it makes sense to do so nationwide.

Same-day couriers like A-1 Express can assist Fulfilled By Sears and its' retailers create a courier logistics solution. Whether is same-day shipping locally or long distances, the Miami Courier is able to pick up anything from small packages to palletized freight and deliver any distance from any fulfillment center throughout the US. A-1 Express is a viable partner for just-in-time inventory in local brick-and-mortar stores and can offer superior product return order fulfillment programs as well.

Reference: 3.22.13, Internet Retailer, Paul Demery, Sears rolls out the Fulfilled by Sears program for other retailers

More Amazon Distribution Centers Could Mean Same-Day Delivery

Amazon is the largest online retailer in the world and their growth does not appear to be slowing down. The online giant is continuing to build distribution facilities throughout the US to accommodate local delivery to their e-commerce customers. Amazon could be preparing to eventually provide same-day delivery.

Many are pointing toward Amazon making strides that are leading to same-day delivery of their online sales. Internet Retailer reported early this month Amazon has made another state tax deal in Connecticut in preparation for the 2013 holiday shopping season. It will begin on November 1st of this year. The company has also agreed to invest $50 million into building a distribution facility there as well. “Amazon’s multi-million dollar investment and the hundreds of jobs that will come with both the construction and operation of their future facility will unquestionably boost our local economy,” said Connecticut Governor Dannell Malloy.

This is one of many similar tax deals Amazon has implemented, which are in states where they currently have a facility or plan on building a facility. Last year, Amazon started collecting sales tax in California, Pennsylvania, Texas, and Massachusetts. This year Amazon is planning to do so in Virginia, New Jersey and Arizona. It also has a number of other states the company already has tax deals in place. It appears Amazon will eventually be collecting sales tax in every state, which infers Amazon will have a physical presence in every state also.

Another reason Amazon could be after same-day delivery are the building of distribution centers throughout the US. Amazon's recent announcement is it will be building three new distribution centers in Texas. Two of which will be located in the Dallas metropolitan area and the other in San Antonio. The Dallas-Fort Worth distribution centers will be a 1 million-square foot site in Coppell, TX and the distribution center in Haslet, TX will be 1.1 million in square footage. The Haslet location will handle smaller packages such as books and DVD's. The San Antonio, located in Schertz, TX, will specialize in handling large items. Amazon has opened 20 distribution centers and 79 fulfillment centers worldwide.

Amazon is also planning to build more this year. Their facilities are making Amazon more and more local every year. It would be ideal for the company to deliver products to their Amazon locker locations and have them available for pick up the same day. This in essence would be same-day delivery. Many companies such as Wal-Mart and eBay are currently testing same-day delivery in certain US markets. Same-day courier service such as A-1 Express can assist large or small online retailers create the delivery solution they are looking for and get their online products delivered fast.

References: 2.5.13, Internet Retailer, Paul Demery, Amazon makes another tax deal