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    Entries in San Francisco Courier (13)

    Friday
    Dec022016

    Amazon Continues to Deliver, Even Driving More Retailer Holiday Sales

    No retailer is doing the type of vast implementations with Same-Day Delivery like Amazon is doing. The e-retail leader is expanding itself at a rapid pace, beyond just being in the US with Prime, but also in Canada and around the world. The aggressive investments and establishing same-day delivery has not been for nothing. Now as the holiday shopping season approaches, Amazon has its sights on capturing record sales in the months to come.

    Along with Amazon's growth, Internet Retailer reports that there are retailers that will be able to generate sales as of a result of it. 55% of online retailers surveyed are expected to generate their biggest share of sales on Amazon this holiday season, according to a new survey from ChannelAdvisor and Morar Consulting. The reason is because Amazon will be a key selling channel for a lot of online retailers. The report stated that retailers say Amazon outpaces eBay. 19% of respondents said will lead to online sales. This is remarkable that Amazon is growing tremendously online that it will cause other retailers to increase in sales as well.

    14% of the surveyed retailers also said that their own sites will be their top web sales channel during the holidays. 48% of retailers expect their holiday web sales to rise, and only 29% believe their sales will stay flat or will decline compared with the 2015 holiday season. The push for sales in the last three months of the year is what retailers wait all year long for. The retailers that can apply the right online strategies, will be the ones that capitalize on the forecasted growth during the holidays.

    Many retailers are launching same-day delivery and various value-added services to attract online shoppers. Amazon has free same-day delivery in 27 city markets, including the San Diego, San Francisco Bay Area, Seattle-Tacoma, Dallas-Fort Worth, Indianapolis, New York, Boston, Tampa Bay, Baltimore, Washington DC, Chicago, Orlando, Nashville, Raleigh, Richmond, Tucson, Atlanta, and more. Amazon Canada now has free same-day delivery in Toronto and Vancouver. In addition to its strides in North America, the e-retailer has Amazon Prime expanding in London.

    Google is another e-retailer, stretching itself quickly in recent months in order to capitalize on the upcoming holiday season. Google Express in now in 14 different states, which include its' early month implementation in New York. The service is now available in Alabama, Kentucky, Utah, Florida, Georgia, Tennessee, North Carolina, South Carolina, Idaho, Montana, Oregon, Washington, and Wyoming. It is isn't at the size of Amazon Prime, yet the aggressive pursuit will eventually result in more sales driven to Google and its' partners.

    A Same-Day Courier like A-1 Express is an expert at implementation same-day delivery on a national scale. The San Francisco Courier partners with retailers and various companies in the US, delivering online items and fulfilling store orders. Retailers don't have to depend on Amazon sales, but can simply do what Amazon is doing to get results themselves.

    Reference: 10.25.16, www.internetretailer.com, Fareeha Ali, Amazon drives the bulk of holiday sales for many e-retailers

    Thursday
    May052016

    Can Fast Delivery Help Target & Wal-Mart Catch Amazon Baby Goods Sales?

    Without question in the online retail market, baby goods is the product category that is soaring above all others. It currently has very impressive numbers in regards to sales, and the retailer that is capitalizing on it is no other than Amazon. Between the e-retail leader, Wal-Mart and Target, Amazon has the highest share of the market. One reason Amazon does could very well have to do with free Same-Day Delivery in several major US cities. The question remains will Target and Wal-Mart go deeper into last-mile deliveries to compete with Amazon.

    The baby products category has the highest penetration of sales online, and 75% of those sales occur on Amazon.com, Walmart.com and Target.com. Internet Retailer discussed in a recent article how consumer research firm TABS Analytics' new study showed that e-commerce accounts for 20% of all sales in the baby products market, which totals $30 billion per year. This outstrips the 2% penetration for all other consumer packaged goods. Consumers that shop for baby goods online need them frequently, and the value-added service of convenience that same-day delivery brings could increase sales. This is why it is going to be interesting to see if Wal-Mart and Target beef up their same-day services as Amazon has done.

    “Online sales of baby products are out-competing all other segments of consumer packaged goods that we have surveyed over the last three years,” said TABS Analytics CEO Kurt Jetta in the article. “Brick-and-mortar retailers with e-commerce aspirations should treat baby product sales as the frontline of their battle for online success.” Online retail is forecasted to reach $500 billion by 2018, which means baby goods will be among the online products that grows even more than it has. Wal-Mart and Target could potentially develop more same-day delivery throughout the US to compete with Amazon. One thing we can be certain of, Amazon sees the value in the trending service option and will not be slowing down same-day delivery for no one.

    The numbers show indeed that Amazon has a larger percentage of the baby goods market online. The study also shows that 18%-24% of baby products purchases occur online. That means that Amazon/Diapers.com represents 43% of the baby products market online. Wal-Mart’s represents 23% and Target's is at 18%. All other e-commerce players roughly coves the remaining 12% of the market. The article also mentioned that Amazon with it's subsidiary Diapers.com, comprises 7.3%-10.6% of all baby products purchases nationwide. Walmart.com accounts for 3.7%-5.8% of purchases and Target.com represents 3.3%-4.3%.

    Based on the TABS survey of 2,000 consumers between the ages of 18-75, some additional findings in the article stated:

    • Households with children up to 5 years old are the heaviest buyers, accounting for 60%-70% of all purchases online and offline.
    • Households with young children purchase 8.5 baby product types per year, compared to 1.6 for all other buyers.
    • Roughly 40% of baby products are purchased by consumers who don’t have any young children in their households, which represents 71% of all households. The bulk of these purchases likely come from relatives or friends giving gifts.

    Wal-Mart and Target already are engaged in some level of same-day delivery. A Same-Day Courier like A-1 Express can partner with the retailers to create a same-day delivery program for hundreds of stores. The San Francisco Courier is a nationwide courier and has the expertise it takes to consistently fulfill orders for baby goods online.

    Reference: 4.20.16, www.internetretailer.com, Stefany Zaroban, Amazon, Target and Wal-Mart battle for online sales of baby goods

    Wednesday
    Nov252015

    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

    Tuesday
    Aug112015

    EBay Shuts Down EBay Now Same-Day Delivery

    Ebay is one of the top online retailers in the market, in spite of the recent news of its move regarding shut down same-day delivery nationwide. EBay Now had a lot of potential, however, it just didn't produce the results eBay was looking for.

    CNet reported how eBay has totally put to rest eBay Now. Former CEO John Donahoe said last October that the service is "not essential to our core target customer". It's an end to eBay Now that many saw coming, as the e-retailer stopped growing the pilot program service and pulled the plug on its' eBay Now mobile app. EBay's shut down of the service shows no matter how popular a service can be and what competitor is doing it, it has to make sense for you to sustain and continue forward. EBay started the service three years ago in hopes to compete with Amazon and Google, two of its' other competitors that have a web-based arsenal. Both of them have heavily invested in same-day delivery services as well.

    Amazon has put itself on the fast track to make same-day delivery an integral part of its' business. What started with around a small fee for Prime members, is now going to be free. The retailer has set up Prime Now in several major US cities, including the San Francisco Bay Area, Baltimore, Dallas-Fort Worth, Indianapolis, New York, Philadelphia, Phoenix, San Diego, Seattle-Tacoma, Tampa Bay, Washington DC, Boston, and Atlanta. With the launch, more than 500 cities and towns included, as well as additional cities that Amazon plans to add in the coming years.

    Google has launched Google Express in major US cities as well. It's no longer just a search engine, but has found partnering with physical store retailers is a niche that it can gain revenue from. Target, BestBuy, Wal-Green's, Toys-R-Us, and others have partnered with Google to pick up and deliver retail items directly from their stores to customers. EBay was in the race too, but decided to throw in the towel, even shutting down the same-day delivery pilot program in Brooklyn that began last December. The retirement of the Brooklyn service involved roughly 80 local merchants. The service will slowly cut away at eBay Now until it has totally been eliminated.

    The article stated that EBay Now was available in New York, Chicago, Dallas and in the San Francisco Bay Area. Both the Brooklyn program and eBay Now will gradually end completely by this Friday. The retailer will also stop using eBay Motors, eBay Fashion and eBay Valet, which are three of its' less popular apps to cut down customer confusion and streamline attention to it's primary eBay app. Same-day delivery isn't just about having a same-day courier like A-1 Express to help with the delivery aspect of the service. The San Francisco Courier has a national footprint to help eBay thrive, yet, it shows that a business model ultimately has to to be profitable in order to stand long-term. We will see if eBay chooses to try same-day delivery again in the future.

    Reference: 7.27.15, www.cnet.com, Ben Fox Rubin, eBay Now rapid delivery service shut down

    Tuesday
    Jun092015

    Amazon Launches Free Same-Day Delivery In California

    If someone would have told you that same-day delivery was free, you probably wouldn't believe it. With all of the investment into seamless omnichannel creation that's behind supplying online and store products to shoppers and all of the upfront costs of launching in big cities, you wouldn't think a company could conceivably pull it off. However, retailer Amazon appears to have done it.

    The Los Angeles Times has reported that Amazon is making same-day delivery free in 14 metropolitan cities the US. The initial launch will be in California cities in the Southland, including those in San Fernando Valley to Irvine, as well as the Redlands and Moreno Valley in the east. Prime members that make a $35 purchase and up by noon, will receive their online order by 9pm that same day. The initial rollout includes more than 1 million items, such as books, games, cooking tools, and electronics.

    Amazon has added 50 fulfillment centers around the world within the last four years. It also has 109 total warehouses to handle the millions of orders it has. With its' vast locations strategically aligned primarily to service major US cities, it has now become feasible for the e-retailer to offer the service free. Chris Rupp, Amazon's vice president of Prime, stated that the free service is "a real-life changer". It will be a huge asset for shoppers that need items right away, from birthday gifts to household goods.

    "These things just pop up in life, and this is meant to simplify our customers' lives," Said Rupp in an interview. "Some of the feedback we've gotten from customers is it already feels like we're living in the future." It does appear that Amazon is going future in every sense. The retail giant is one step closer to same-day delivery drones, which the company stated would be probable to deliver packages within 30 minutes. The Federal Aviation Administration has recently approved Amazon to conduct further research on drone use. This would be the very first type of delivery method of its' kind.

    This could be considered a soft launch in scope of Amazon's bigger plan. The article stated that more major US cities will receive the service also, including the San Francisco Bay Area, Baltimore, Boston, Dallas-Fort Worth, Indianapolis, New York, Philadelphia, Phoenix, San Diego, Seattle-Tacoma, Tampa Bay, Washington DC, and Atlanta. There will be more than 500 cities and towns included at the launch as well, plus more added in the future.

    Google is only one of the many fierce competitors running against Amazon. Google Express is expanding, as well as Wal-Mart, start-up company Deliv, Macy's, Uber, and others are all on the same current seeking to bring same-day success to their shores. It's inevitable that same-day delivery is going to be necessary in order to compete online. A same-day courier like A-1 Express can be a partner of any retailer desiring to implement the service fast. The San Francisco Courier has a nationwide footprint to accommodate broad expansion for any retailer in need.

    Reference: 5.28.15, www.latimes.com, Andrea Chang, Amazon rolls out free same-day delivery