More Same-Day Grocery Delivery for Whole Foods

Grocery delivery services are growing day by day, as customers begin to become more comfortable with having their food products delivered. What adds to the value of grocery delivery is that is provides a high level of convenience. It saves customers time spending at the store, and the gas money it takes to driver there. Whole Foods is a supermarket chain that joined with Instacart in 2014 and found a successful niche in same-day grocery delivery, coupled with its already strong loyal customer base. It made sense to do it then, and it makes sense to expand now.

Whole Foods has announced it will be expanding its same-day grocery services via the mobile grocery shopping app Instacart. Internet Retailer reported that Whole Foods will be adding an unspecified number of markets in which it will offer same-day grocery delivery, in addition to its current 17 metro areas where the Instacart delivery option is being offered. The grocery retailer appears to be seeking to gain more of the online grocery market share, especially with e-retail based Amazon and Google positioning themselves to turn more fast grocery shoppers their way from physical supermarkets directly.

AmazonFresh has been at it for a while, especially mid-last year teaming up with the US Postal Service to deliver groceries in San Francisco, as well as 38 various zip codes in the area. It is also available in the companies hometown Seattle, Los Angeles and more. Google Express officially launched Same-Day Delivery of groceries last month, delivering produce, meat, eggs and other perishable goods in parts of San Francisco and Los Angeles also.

The article also discussed what Whole Foods' pricing is for same-day grocery services. Its' hour-window service cost a $5.99 fee, while its two-hour window service is $3.99. Short window times with the service tend to be fixed, being they're food and perishables, yet, the accuracy of delivery is more critical because it is food. Several supermarket chains that offer the service partner with an expert Same-Day Courier like A-1 Express to perform the actual deliveries. The New York Courier functions at a fast pace and has a national footprint to meet client expansion demand quickly.

Instacart CEO Apoorva Mehta commented on the successful strides that Whole Foods is making partnering with them. He stated, “Instacart and Whole Foods Market share a mutual commitment to providing our customers with the easiest and most seamless grocery shopping experience possible. We look forward to continuing to innovate with Whole Foods Market in the services that we can bring to users.” This shows that Whole Foods is able to create the ominchannels it wants that is results in store food sales.

With the Instacart mobile app or website, Whole Foods is in big US markets such as Chicago, San Francisco, Boston, Washington, D.C. and more. At the time of the announcement, the new expansion markets include Orange County, California, and Baltimore. Whole Foods has also been reaching out to more customers that are on the go via coupons. Just last month, Whole Foods launched online coupons through Instacart's mobile app as well.

Reference: 3.10.16, www.internetretailer.com, Matt Linder, Whole Foods expands delivery services with Instacart

Amazon Increases Minimum Order Amount for Free Delivery

Amazon is doing a lot of daring moves when is comes to revolutionizing the world of online retail. It doesn't take a genius to know that Amazon is after it all, and is desiring to become the leader in not only on the retail front, but on the delivery and order fulfillment front also. Yet, the latest shift by the retailer for minimum online purchases in order to get free delivery could have a mixed response from Prime members.

The Wall Street Journal discussed the recent announcement by Amazon entails raising its' minimum order size for non-Prime members from $35 to $49 to qualify for free shipping. For at least a decade, Amazon's minimum fee was $25 until 2013, which the retailer increased the amount to $35. The threshold increase could be used to steer regular customers into becoming Prime members, which pay an annual $99 fee and receive unlimited two-day shipping.

In response to the fee hike, Amazon didn’t offer much of an explanation, yet only stated that “from time to time, we review our shipping options.” With it still being early in the year, the retailer could be testing the non-Prime customer market to see how many will become Prime members. There is plenty of time prior to the last quarter for the holiday season to offer the right shipping options to retain Prime members and gain more. The question is how will customers respond to it.

Free shipping isn't the only option that Amazon is offering that is attracting shoppers. In recent years, the company has implemented Same-Day Delivery in a number of major US cities nationwide. Amazon has a stronger presence of same-day delivery more than it ever has before. Amazon provides same-day delivery in the San Francisco Bay Area, Seattle-Tacoma, Dallas-Fort Worth, San Diego, Indianapolis, New York, Philadelphia, Phoenix, Washington DC, Tampa Bay, Baltimore, Boston, and Atlanta. It also launched free same-day delivery last year in 14 metropolitan cities the US, starting with California cities.

Even abroad, Amazon is affirming its goal to expand its delivery capabilities. It is being reported that Amazon is planning to develop a global delivery network to compete in China. Online retail is growing in the US, yet it is climbing at an even faster pace there. E-commerce is forecasted to reach $1 trillion by 2020 in China, which is all the more reason why Amazon is establishing its' fees relative to minimum orders and delivery systems. In addition, Amazon has leading China online retailer Alibaba to wrestle with in that market as well.

The largest US e-retailer has done a host of business implementations to capitalize on its momentum online. With Amazon's price shift, other retailers will probably analyze their own minimum order amounts and shipping options. A number of businesses and retailers have partnered with a Same-Day Courier like A-1 Express to create a delivery solution that will satisfy the need for fast delivery that shoppers demand also. The Los Angeles Courier can assist companies with fulfilling those orders, as the products per order increases, along with the minimum fee for free delivery.

Reference: 2.22.16, www.wsj.com, Greg Bensinger, Amazon Boosts Free-Shipping Minimum to $49, Elevating Prime Service

Nordstrom Shifts To More Online Selling, Same-Day Delivery Could Boost Sales

It takes a lot of e-commerce strength to take your online sales to a high level in today's market, especially with the way Amazon is spearheading many new business trends. Macy's is another retailer that has boosted online sales with Same-Day Delivery, as well as online order store pick up. Nordstrom has made several strategic moves to increase online sales; however, its' shares fell 30% last year, which tells the company it may be time to make a pivotal shift once more. From a recent article from Internet Retailer via Bloomberg News, the shift will have to do with online selling.

Chief financial officer Mike Koppel explained in the article what is hurting Nordstrom's bottom line. It has to do with the entire retail industry turning from running fleets of bricks-and-mortar stores to also selling their goods online. The article said, "He explained that the "old model"—big physical stores located mostly in malls—came with high fixed costs, but high leverage. In other words, you had to pour a lot of money into literal bricks and mortar to build stores and train staff, but once your sales reached a sort of break-even point, all the rest was gravy. In essence, the money from a banner sales year could flow straight down to the bottom line once those initial costs were paid for. And that became pretty easy to anticipate and plan against."

One benefit of online sales is that it comes with low fixed costs, but the price tag was high variable cost. His conclusion is that the more Nordstrom sells online, the more it has to shell out to pick, pack and deliver those goods. In his own words, Koppel stated as a result "business has been flattening in malls and growing in e-commerce, and so the two strong trends are impacting operating margins". It appears that Luxury retailer Michael Kors is having a similar issue, even mentioning in the article that e-commerce isn't as profitable as business at physical stores. Koppel said if there is "anyone out there" who has figured it out, because "we have a lot of work to do."

Nordstrom raised its' promotions in order to try and keep pace with Amazon. The robust e-retailer is making strides within the online retail industry that is puzzling a number of retailers on how they can compete. Amazon even has implemented same-day delivery in a number of major US cities nationwide. It provides same-day delivery in the San Francisco Bay Area, Seattle-Tacoma, Dallas-Fort Worth, San Diego, Indianapolis, New York, Philadelphia, Phoenix, Washington DC, Tampa Bay, Baltimore, Boston, and Atlanta. It also launched free same-day delivery last year in 14 metropolitan cities the US, starting with California cities, recently adding Orlando and Chicago as well.

To attract more customers and to establish a deeper loyalty with current Prime members, Amazon raised its' minimum order size for non-Prime members from $35 to $49 to qualify for free shipping. This threshold increase could be used to steer customers into becoming Prime members, which pay an annual $99 fee and receive unlimited two-day shipping. This is just one example of what innovative direction Nordstrom may have to go in to thrive online.

With the growth of same-day delivery in the US, partnering with a Same-Day Courier like A-1 Express may be the move to make for Nordstrom. The service will attract luxury apparel customers via more shopping convenience. The Chicago Courier has all the right delivery technology and courier expertise to compete online.

Reference: 3.14.16, www.internetretailer.com, Bloomberg News, E-commerce eats into Nordstrom’s profits, and that’s OK

Snapdeal and dPronto Partner For Same-Day Delivery In India

Big names like Amazon, Google, Macy's, and others come to mind when you think of US retailers that have implemented, and they are gradually expanding Same-Day Delivery in the US. Yet, same-day delivery is not only growing in the US, but worldwide. With a forecasted growth to reach $987 million by 2019 in the US, the marks are even higher globally, which shows why Snapdeal and dPronto have joined in partnership to take e-commerce to another level.

First Post reported that Snapdeal has partnered with dPronto to offer same-day delivery across India. The purpose of the partnership is to enable Snapdeal to reach a larger customer base via the last-mile service. Snapdeal raises $200 mn in fresh funds led by Canada’s Ontario Teachers’ Pension Plan. dPronto’s trained delivery staff will pick up packages from Snapdeal’s sellers or fulfillment centers and then deliver same day to its' customers. Currently, Snapdeal has an on-time success rate of 90% with same day delivery.

DPronto is a last-mile delivery company with a business model niche of working with e-commerce companies (including hyperlocal market places). It provides last mile logistics services for e-commerce companies by leveraging trained fresh manpower supply, disruptive technology and efficient processes that minimize delivery turnaround times and optimize costs. The deliverer's driving staff will be trained to service 600 towns across in India, which will create more jobs in the area.

The report also mentioned how the partnership will help kids in India acquire some of those jobs that will be created. Ashish Chitravanshi, Vice President, Operations at Snapdeal, commented in the article regarding dPronto's initiative. He stated, “dPronto’s initiative of empowering the less privileged youth by making them employable is highly commendable. We are excited to be partnering with them to further strengthen our last mile delivery capabilities as we remain committed to our promise of catering to every customer in every pin code.”

More and more companies are after same-day delivery. Even UPS appears to be making strides to dive offering it. The carrier giant has made a strategic business investment into start-up company Deliv to study the same-day delivery model and see how that market is evolving. The Strategic Enterprise Fund, UPS's venture arm, is leading a $28 million funding round for the Palo Alto, California-based Deliv. With UPS being a global shipper, and the growth of same-day delivery, it makes sense for the company to finally position itself to be able to offer last-mile deliveries, as well as being able to partner with businesses that demand it.

Several companies are partnering with a Same-Day Courier like A-1 Express to enter the same-day delivery market and get their e-commerce synchronized with today's business trends. The Chicago Courier has the courier footprint to cover same-day services nationwide and the technology infrastructure needed to develop efficient delivery solutions.

Reference: 3.3.16, www.firstpost.com, FP Staff, Snapdeal partners with dPronto to expand its customer base for same day delivery

UPS May Go Same-Day Delivery

When UPS begins to study Same-Day Delivery, there must be something big coming in the package delivery industry. Business Insider has reported UPS has made a strategic investment into start-up company Deliv to study the same-day delivery model and see how that market segment evolves. The Strategic Enterprise Fund, the venture arm of UPS, is leading a $28 million funding round for Palo Alto, California-based Deliv. The article mentions there has been non-disclosed investment size, yet UPS will take a minority stake in Deliv and sit in on board meetings as both companies analyze the service.

The managing director of the UPS Strategic Enterprise Fund, Rimas Kapeskas, commented about the strategic investment in the phone interview. He stated, "We don't participate in the on-demand business as much, and the consumer side of this is still a bit of a mystery to us. This is a rapidly evolving marketplace and we thought we could learn more by being close to it." Same-day delivery is definitely worth, not only a closer look, but to devise a plan to brand and implement the service within any company in today's business evolution. Same-day delivery is forecasted to reach $987 million by 2019.

Deliv Chief Executive Daphne Carmeli weighed in on the phone interview also, commenting on the investment from it's perspective. She stated, "We are solving a different problem in the last mile, and they (UPS) are looking to learn that model and looking to learn about growth in same-day delivery as we are interested to learn from their success." Both companies are good at their respective niches and this type of strategy positions both of them to compete against front runner Amazon.

The e-retailer has consistently expanded same-day delivery within the US online market, even offering the service for free is various major US cities. Last year, Amazon launched free same-day delivery last year in 14 metropolitan cities the US, beginning with California cities. It also has same-day delivery in the San Francisco Bay Area, Seattle-Tacoma, Dallas-Fort Worth, Indianapolis, Boston, Phoenix, San Diego, Washington DC, Philadelphia, Baltimore, Tampa Bay, New York, and Atlanta. More major US cities are probably to come.

UPS's interest in same-day delivery may in fact have do with Amazon's recent moves that indicate the retail leader is headed toward creating its' own global delivery network. This would mean that UPS will have a lot on their hands to deal with because a network like this will put Amazon in directi competition with UPS, DHL and FedEx. China's e-commerce is expected to hit $1 trillion by 2020, meeting the demand of 900 million shoppers, and this is where Amazon could launch the new delivery system.

Once UPS learns same-day delivery, it will see the potential and versatility that most companies are beginning to understand it brings. Shoppers like on-demand options, and companies are partnering with a Same-Day Courier like A-1 Express to implement innovative same-day solutions. This Seattle Courier has the courier expertise and nationwide footprint to help retailers and delivery companies compete utilizing same-day delivery.

Reference: 2.22.16, www.businessinsider.com, Nick Carey/Mari Saito, With Deliv investment, UPS hopes to study same-day delivery market