Google Launches Same-Day Delivery in New York

Amazon may have a great deal of online market share, but Google isn't going away. The e-retailer is showing that it has a strategy of it's own to get more customers to shop via Google Express, especially as the holiday season approaches. Google is taking its' delivery program to the big apple--New York.

Google has announced that Google Express will be launched in New York, partnering with big name retailers, including Costco, Kohl's, Whole Foods, and PetSmart. Nearly 70 million people in over a dozen states nationwide, including the tri-state areas, will now be able to order online from their mobile devices to have Google Express provide Same-Day Delivery right to their door step. Technology is driving the ingenuity being created by retailers, enabling seamless omnichannels between web and storefront. Shoppers search often online for discounts and more, and when the right deals come along, they make their purchase. With technology, now shoppers can utilize their smartphone and buy virtually from wherever they are.

It makes a difference when a large grocery chain like Whole Foods can not only buy and sell in-store, but they can offer the value-added service of bringing their groceries conveniently to the homes of shoppers. Online shopping expert Michelle Madhok talked about the same-day service, stating that Google Express has "...a number of items you can order via Google and Google Express and have it delivered in under an hour. Depending on the item, some will take a little longer, but you can click 'get this today".

Shoppers will be able to pay either a per-order fee or an annual fee for the service. Like Amazon, Google Express offers a subscription program, which members will pay $95 a year, versus Amazon Prime at $99. The subscription fee helps with the overall costs involved with massive programs such as these, and for both retailers and shoppers, it appears to be well worth it. Wal-Mart is currently testing its' pilot program, ShippingPass, with an annual membership fee of only $49 with the option of free next-day delivery, as well as those that have paid their fee will receive a free additional month as a promotional tool. Wal-Mart.com will have a logo next to the products in which the ShippingPass service can be utilized.

Google may be launching in New York, yet it has its' work cut out with how Amazon continues to expand same-day delivery at a rapid pace. Amazon has free same-day delivery in a total of 27 major US cities throughout the US, including the San Francisco Bay Area, Seattle-Tacoma, Dallas-Fort Worth, San Diego, Indianapolis, New York, Philadelphia, Phoenix, Boston, Tampa Bay, Baltimore,Washington DC, Chicago, Orlando, Atlanta, Nashville, Raleigh, Richmond, Tucson, Cincinnati, and more. This week, Amazon announced its' expansion into Canada, launching free same-day delivery in Toronto and Vancouver. At this rate, Amazon will be delivering within hours all over North America.

Google and physical store retailers both have same idea, which is to ship their store items to customers and use same-day delivery to do it. A Same-Day Courier like A-1 Express is who retailers and other companies can partner with to launch same-day delivery programs to grow their business online. The Portland Courier has to courier expertise and technology to quickly implement last-mile deliveries for online order fulfillment.

Reference: 9.28.16, Fox 5 New York, Jennifer Lahmers, Google Express delivery service debuts in New York

Amazon Launches Free-Same Day Delivery in Toronto & Vancouver

There is not another dominate e-retailer currently than Amazon, and it is clear by the continued success of its' free Same-Day Delivery program. Now the free service to Prime members is moving beyond the US and into expansion in Canada.

Amazon Canada, also Amazon.ca, has announced that it will be offering free same-day delivery in two major cities there: Toronto and Vancouver. Out of the two cities, Toronto is the one with most of the attention, being that it is the largest city in Canada. Same-day delivery thrives off of volume, and as the services grows within Toronto, it will more than likely be a platform for other cities. The service will be available for only Prime members at no cost, which currently pay $79 annually for free delivery without a minimum order requirement. The option will be available for all orders above $25 in both cities.

Alexandre Gagnon, vice-president, Amazon Canada, discussed why now that the retailer is moving forward with same-day delivery there. He stated, “We have been working quite hard to improve the speed of delivery and we got to a point where we are now able to offer that service”. He also added, “In general, people using e-commerce tend to want to receive those goods as fast as possible. In response to demand we are launching this program.” The demand via e-commerce is what drives fast delivery to be justified to implement it for Amazon. The e-retail giant has enough shoppers ordering online and that want same-day delivery, that it only make sense to launch it.

Jim Danahy, CEO of retail advisory firm Customer Lab, also commented in the article about Amazon and the addition of same-day delivery. He stated, “With the membership, Prime is like a Costco for online, and where they really made ripples when they first did this was during the holiday season. They have clearly demonstrated that same day and next-day delivery across the United States has made a difference. I can see this making a difference for people who are pressed for time. Many people decide which retailer they choose based on those kinds of features. It’s an infinitesimally small piece of Canadian retail at this point, but it is where the industry is going.” Amazon is proving that it understands how to quickly adapt to industry changes and more retailers will have to learn how to do this as well.

From Google, Wal-Mart, BestBuy, Target, Macy's, and more, many big name retailers understand the same-day delivery is becoming more than just a trend. As online retail grows, which is forecasted to reach $500 billion by 2018, it is going to be essential to have the strong omnichannels in place to bridge online and in-store business. The retailer that can do that is going to be the retailer that acquires more shoppers and keeps them. Indeed, the industry is headed towards more speed and convenience, which is what a Same-Day Courier like A-1 Express can help any retailer quickly implement throughout the US. The Memphis Courier has the courier expertise and latest technology to create efficient same-day solutions.

Reference: 9.27.16, Financial Post, Hollie Shaw, Amazon launches same-day delivery in Toronto, Vancouver

Retailers Getting Faster At Delivering Online Items

If you're moving as fast as Amazon is, then you would understand that today's online retail is emerging to become a staple business within e-commerce. Online retail is expected to reach $500 billion by 2018, and Amazon is leading way, capturing 33% of sales online a year ago. One of the e-retail giant's core value-added services is its' ability to optimally perform two-day delivery, as well as Same-Day Delivery. This has given Amazon a tremendous advantage over other retailers, yet a new report shows that they are beginning to fight back and speed up their delivery times.

Internet Retailer recently reported how several top e-retailers in the US have begun to deliver their online items. It's new “Click, Ship & Return: Fulfillment Report” showed that retailers were making delivery time improvements within the last three years. The study was based on 30 retailers, tracking KPI's such as shipping speed, order processing times and returns. The report found that the average delivery time was four days.

The four-day time frames is a big difference from what it use to be. Based on a Slice Intelligence tracking of 238 online retailers, in January 2014 the average delivery time was 8.3 days. By April 2016, that average has decreased to 5.1 days. Therefore, there was a vast improvement within a two-year span. Consumers have become more comfortable with shopping online, coupled with the convenience of technology, the demand for faster delivery has increased. The retailer that can provide the same product, yet have the ability to get it into the hands of shoppers reliably faster, will be the one that gains a loyal customer.

In comparison with Amazon, the e-retail holds an impressive average between one and two days to deliver. This is no surprise with the level of distribution and fulfillment center operation that Amazon has. Now, it even has the reach to provide two-hour delivery via Prime Now in major US cities. Earlier this year, Amazon's expanded its' free Same-Day Delivery program to a total 27 cities, including San Francisco Bay Area, New York, Philadelphia, Seattle, San Diego, Dallas-Fort Worth, Phoenix, Indianapolis, Baltimore, Washington DC, Chicago, Richmond, Atlanta, Orlando, and more. Soon Amazon will be nationwide.

Other retailers are beginning to adopt Amazon's strategy. E-commerce analytic company, Slice Intelligence, performed a study and found one way retailers are successfully delivering quicker is by building more distribution centers to fulfill online orders, and these facilities are storing merchandise close to many heavily populated areas. This is resulting in faster turnaround delivery times. They are also utilizing their brick-and-mortar stores to pick up and delivery online orders. A company like Wal-Mart for example, has thousands of locations nationwide, which would enable it to easily fulfill online orders.

Instead of perform the deliveries themselves, many retailers partner with a Same-Day Courier like A-1 Express to develop an optimal same-day delivery solution throughout the US. The Phoenix Courier has a national footprint and the expertise to exceed any company's expectations. We understand courier same-day delivery, offering route deliveries, long-distance services, return delivery services, one-hour services, and more. A-1 Express can help get retailers' delivery time decreased, resulting in being able to truly compete with Amazon.

Reference: 9.9.16, www.internetretailer.com, Kat Fay, Top e-retailers deliver the goods faster

Tesco Seeks to Compete with AmazonFresh, Goes Same-Day Grocery Services

It's not about which retailer will surpass Amazon, but who are the ones that can at least keep up with it. The US e-retail leader is not only having competitors dig deep to keep market share in the US, it is happening abroad as well. In the UK, supermarket giant Sainsbury just launched an initiative in July to offer same-day grocery delivery in 30 ares in England before year's end. Now, it appears store chain Tesco is right behind them with a same-day service of its' own to defend off Amazon Fresh from luring its' customer base away.

The Daily Mail recently reported that Tesco will be rolling out a same day ‘click and collect’ service for groceries from 300 stores throughout the UK. With this many stores, Tesco should generate the volume it takes to make the service work. Scale is vital with any same-day service, as the volume will ultimately make it worth while. For all orders placed by 1pm, shoppers will be able to pick up from their local store after 4pm the same day. The cost of the service will be £2 for a two-hour collection slot from Monday to Thursday, and £3 for slots on Friday or Saturday. Another option regarding Tesco's click and collect is that customers can either choose a 4pm to 6pm, or 6pm to 8pm collection window slot for all six days.

"We know time is valuable to our customers and they expect more convenience and choice than ever before in how, when and where they do their grocery shopping", Tesco said in the article. The retailer also said relative to service convenience, "Our same day grocery click-and-collect service is available at nearly 300 stores across the UK and means our customers can get their shopping at a time and location that is convenient for them." As shoppers have become more comfortable and secure with online purchasing, retailers now seek to position their stores so customers can buy right where they are. Whether they are at the coffee shop, or at home, they can utilize their mobile device to buy online and them pick it up from a retail store.

In today's market, shoppers are also trending to use Same-Day Delivery to have their online items dropped off at their front door. This is what Amazon has established in the 27 markets in the US, including hometown Seattle, San Francisco, San Diego, Charlotte, New York, Philadelphia, Chicago, Atlanta, Richmond, Orlando, and many more. Wal-Mart, the world's largest retailer, has launched same-day grocery delivery in a few major US cities to begin with in the last recent months. It makes sense for any grocery store retailer to offer same-day delivery, as shoppers have a constant demand for food products and would enjoy not have to leave their home to get dinner.

Tesco's competitor, Sainsbury, announced launching a same-day grocery delivery program that will span over 30 areas in England by Christmas of this year. When the grocery store chain use to only provide grocery next-day delivery as an option, now its' customers can get their products the same day. Same-day grocery delivery will be offered for orders placed online by noon, and will be dropped off by 6pm that day. Like Tesco, Sainsbury will have a pick-up option that will be ready to pick up from 4pm as well .

As other companies are doing, Tesco is implementing this strategy to stay competitive with new Amazon Fresh, which offers same day delivery on 130,000 goods. It takes an established system to optimally delivery that many online items per day. A Same-Day Courier like A-1 Express can partner with any grocery store chain or e-based retailer that wants same-day delivery to become a staple service. from their operation. The Houston Courier has the national footprint and logistical expertise to develop a variety of same-day solutions for any company to grow their business and compete with Amazon.

Reference: 8.24.16, www.dailymailcom, Sean Poulter, Tesco is to offer a same day ‘click and collect’ service for groceries as it moves to fight off threat from Amazon

Amazon Has Record 28% 2nd Quarter Growth, Same-Day Delivery Helps

Some revenue growth happens for any company that is good, unless you are competing against Amazon. Your results are going to have to be more than mediocre in comparison to what the e-retailer is doing, putting others in a compelling position to make innovative adjusts like Same-Day Delivery to their e-commerce.

The recent numbers show that Amazon is outpacing many retailers, as sales increased 28.1% in the second quarter this year in the US and 30.1% internationally. Amazon's Web Services cloud computing unit also went up by 58.2% increase, resulting in an overall revenue growth to 31%. More and more shoppers have become comfortable with online shopping, as well as the convenience demand that it meets. This demand is driving Amazon and other retailers to get online items into their customers' hands right where they are. Brick-and-mortar business still remains ahead e-commerce; however, online retail is expected to reach $500 billion by 2018. This equates to Amazon's aggressive ingenuity and it is creating results.

In fact, the article by Internet Retailer mentioned the second quarter numbers were a record net income for Amazon. Its' met income reached $857 million, which is almost ten times the net income of only $92 million in the second quarter the year prior. The positive quarter makes it the fifth consecutive profitable term that Amazon has had. In the past, Amazon often reported quarterly losses due to heavy investments into new fulfillment centers, new device development, licensing movies and TV shows for its Prime Video service. Yet, there is an overturning of investment into steady revenue.

Here are some additional stats from Amazon record-setting second quarter:

• North American net sales of $17.674 billion, up 28.1% from $13.796 billion in the same period a year ago.
• International net sales of $9.844 billion, an increase of 30.1% from $7.565 billion last year.
• North America sales of books, music and other media of $2.928 billion, an increase of 11.8% over $2.620 billion in Q2 2015. North America sales of electronics and general merchandise increased 31.6% to $14.459 billion from $10.987 billion.
• Net income of $857 million, a sharp increase from $92 million a year earlier.

From Amazon, it appears we haven't seen nothing yet. “We're opening 18 fulfillment centers this quarter,” said Brian T. Olsavsky, Amazon's senior vice president and chief financial officer about future implementations, according to a transcript via SeekingAlpha. “To put that in perspective, we launched six in Q3 of last year. This will bring us up to 21 net FCs for the year by the end of Q3 and that compares with 10 fulfillment centers for the first three quarters of last year on a net basis." Olsavsky went on to say, “So, why are we expanding so much? If you remember back to Q4 and the capacity constraints we had in Q4, primarily due to really strong FBA growth, we talked a lot in the Q4 call about the operational cost of that in Q4. Customers well taken care of, but we had additional fulfillment costs from being so tight on capacity.”

Amazon is a fast moving train and same-day delivery is just one of the pieces playing a part in Prime sales growth. An example is implementing a fast shipping option for online shopping. Businesses are partnering with a Same-Day Courier like A-1 Express to offer customers on-demand services and deliver items right to their front door. The New York Courier has a national footprint and the ability to implement effective same-day delivery solutions within major US cities to attract today's online market.

Reference: 7.28.16, www.internetretailer.com, Don Davis, Amazon reports 28% North American sales growth in Q2