Macy's Increased Online Investments Will Help It's Same-Day Delivery

It was clear that Amazon, Wal-Mart, Google, and other big name retailers are taking their online retail to another level, even with implementing same-day delivery in multiple US cities. This has been a part of maneuvering into position, as online retail is growing on pace to spike to $500 billion by 2018. Yet, department store leader Macy's has a game plan of its' own.

Internet Retailer recently reported how Macy's has decided coming into the new year, that it was going to step up its' game regarding its' investments into online retail. Macy’s announced a few days ago that it will make significant changes. It will merge its online and store merchandising marketing teams, hire 150 more employees for its digital center in San Francisco, close 14 stores while opening two new ones, and decrease the number of workers per store. Macy's could be turning that spending toward beefing up its' online presence.

In the report, chairman and CEO Terry Lundgren spoke of how technology is affecting their business and Macy's is making investments to change with it. "Our business is rapidly evolving in response to changes in the way customers are shopping across stores, desktops, tablets and smartphones. We must continue to invest in our business to focus on where the customer is headed—to prepare for what's next." Shoppers have more avenues to find deals and discounts online via tech gadgets, so retailers need to be there with something attractive or they will move on. Macy's has the market for growth and there's no reason not to create online innovation, especially for its' loyal customers.

Lundgren also stated in the article, "Going forward, Macy's and Bloomingdale's will be better able to move more quickly and nimbly to select merchandise, assort inventories and serve total customer demand, no matter how, when or where the customer shops. Some redundant activity also can be avoided to accelerate speed to market, partner more effectively with vendor resources and ensure the merchandising organizations are more responsive to the marketplace in making and implementing decisions". The key is mobility with the customer as a retailer, especially as a brick-and-mortar store. Shopper convenience will meet the service-driven demand as well.

Macy's has also performed a strong launch of same-day delivery in multiple US cities late last year. Those cities included Los Angeles, San Francisco, San Jose, Seattle, Houston, Chicago, Washington DC, and New Jersey. Bloomingdale's, its' sister company, also did in Chicago, Los Angeles, San Francisco and San Jose. It partnered with Deliv to perform its' deliveries, another fairly new delivery company. Partnering with Deliv, Macy's set its' pricing at flat rate of $5 for orders over $99. Shoppers with smaller orders pay standard shipping rates, in additional to the flat rate. Same-day delivery probably brought out some other findings to boost Macy's e-commerce.

Some have stated this is a bold move by Macy's, yet other retailers should take note of the aggression. Mayc's online investing within directly affect its' same-day delivery, which will increase online sales. A same-day courier like A-1 Express is a viable option for any retailer looking to increase their web investments. Other brick-and-mortar retailers can partner with the San Francisco courier and make big gains online with same-day delivery.

Reference: 1.8.15, Internet Retailer, Don Davis, Macy’s steps up its online investments

Experts Say Macy's Same-Day Delivery Will Work!

After Amazon and Google has made their strategic moves with establishing same-day delivery, Macy's made a move of its' own. With rolling out same-day delivery in multiple US cities demographically fit for the service and considering every aspect of Macy's, experts are commenting the popular department store could end up being the front runner.

Forbes recently reported how Macy's could lead the pack and win out with same-day delivery. Macy's aggressively jumped all the way into the service last month, launching same-day delivery in Houston, Los Angeles, San Francisco, San Jose, Chicago, Washington DC, New Jersey, and Seattle. Sister company Bloomingdale's also rolled out the service Los Angeles, San Francisco, San Jose, and Chicago. Customers that place their online orders with Macy's by 1 pm, will have their items delivered same day within a selected two-hour delivery window option. Orders must be placed by 11 am on Sundays.

Macy’s also stacks up against the competition with its' pricing for the service. Big name retailers like Amazon offer its' Prime members same-day delivery for $5.99. However, Non-Prime members pay $9.99 for the first item and $.99 cents per additional item. Google Express charges $4.99 per order or customers can pay $10 per month and $95 per year. Wal-Mart even offers same-day delivery in multiple cities and its' service Walmart To Go costs $10, regardless of the order size. Wal-Mart does offer free same-day service in parts of Canada to compete with Amazon, yet currently not in the US.

Some experts weighed in on the prospect of Macy's be on track to very well get in front of the competition. President of Second To None, Jeff Hall, stated, “Same-day delivery, including two-hour delivery windows, will be hugely appealing, as it crushes so many of the inconveniences of shopping in-store: drive time, parking, traffic, etc. Macy’s is at the forefront of an emerging customer expectation that will be growing exponentially in the next few years.” With the growth of tech gadgets and the comfortability of shopping online, many shoppers are in fact engaging into more outside-of-the-store shopping.

In the article, president of Newmarketbuilders Carol Spieckerman said, “The big breakthrough is department stores finally coming around to the reality that not everyone loves to shop (a premise that most have myopically held onto despite evidence to the contrary). Department stores’ stubborn store-centricity may have held them back in the digital realm, but now Macy’s is showing everyone how to play a mean game of catch-up on multiple fronts.” Forbes also mentions how the industry insiders of the RetailWire BrainTrust were generally positive about Macy’s offering same-day delivery, a retailer known for being ahead of the omni-channel curve.

Deliv is the start-up delivery company handling the physical same-day service for Macy's utilizing a crowd-sourcing approach in which everyday people pick up and deliver for them. One Deliv driver will pick up multiple orders and deliver all of them, which is what a same-day courier like A-1 Express would offer also. The San Francisco courier has a national footprint and logistical expertise to perform cost-effective deliveries on time. A-1 Express is an experienced courier capable of accurate deliveries, in addition to returns, real-time address adjustments and more, which would be needed for Macy's during the busy holiday shopping season.

Reference: 11.21.14, www.forbes.com, Tom Ryan, Same-Day Delivery May Be A Win For Macy's

Dangdang Launches Same-Day Delivery In 400 China Cities

Service has equated to speed until now in today’s evolving business structure. If anyone thought same-day delivery was only becoming a household name in the US, they will definitely be surprised by the way its’ thriving elsewhere in the world. Amazon, Wal-Mart and others aren’t the only e-retailers implementing same-day delivery. Slide over and make room for China’s Dangdang.

Dangdang has announced that it has officially launched “Super Speed Delivery” in 400 cities in China. Dangdang has coined the catchy service name “111 super speed delivery” in China that shoppers have become familiar with. The term means that Dangdang orders placed by 11 am, will be delivered within 12 hours, which is its’ version of same-day delivery. Orders placed by 1am, will be delivered within 24 hours. Therefore, Dangdang offers two types of service within its’ 111 super speed delivery.

This is an explosive move for the company, yet it only made sense in comparison to what Dangdang has already built, and building, to support it. The company has 29 warehouse centers and has plans to build 16 more by year’s end. In a recent report from the company’s website via Yahoo.com, Dangdang stated its’ mode of operation can simply be termed as “self-built warehousing plus external logistics cooperation.” Dangdang is focused on cooperation and its’ growth will essentially convert into growth for many logistics express companies.

As some US e-retailers have done, Dangdang is not handling the delivery logistics aspect of super speed delivery by itself. The same day the company announced its’ commitment to servicing 400 China cities, Dangdang stated in the report that it also signed strategic agreements with large logistics corporations in China to improve delivery speed and service. Without its’ own delivery fleet and expertise, no e-retailer with a service this robust can be successful alone. It makes sense to partner with delivery companies to handle the foundational implementation of the service, while Dangdang handles the rest.

Dangdang is after speed and efficiency, which are two ingredients their supply chain needs to make this service sustainable. Centralized storage and value-added services of nationwide unified delivery were also mentioned in the article, as well as the company will allow couriers to enter their warehouses and sort orders. Amazon certainly has some commonalities with Dangdang relative to building warehouse centers in the right places to create the most effective delivery system. Even Google and eBay have partnered with store retailers, which their physical locations essentially act as centralized storages to fulfill customer online orders.

Online retail is an emerging business strategy to increase sales, especially for brick-and-mortar stores seeking to get their product to move. Same-day delivery is meeting the convenience demand of shoppers and Dangdang has made a very aggressive shift in China business with it. One can only imagine where the company’s business will expand into next. The US market probably is attractive to Dangdang and a Same-Day Courier like A-1 Express could be a viable option to partner with there. The San Francisco Courier has a national footprint and can implement a delivery logistics solution for Dangdang with super speed also.

Reference: 7.10.14, Yahoo.com, Dangdang Launched "Super Speed Delivery" in 400 Cities of China

Projections Say Amazon's Same-Day Delivery To Reach 31% of US Consumers

One thing about Amazon, they are not holding back any punches when it comes to its’ e-retail growth. This is why the company is number one, doing it with power and ease. In recent years, many experts have suggested that Amazon is in the race for more same-day delivery just like every other big retailer, yet it is quietly making its’ moves. However, last year Amazon became quite outspoken about its’ plans involving same-day delivery. Amazon CEO Jeff Bezos discussed at that time, same-day delivery via drones. This was a huge statement and Bezos meant all of it.

That alone let the world know just how serious Amazon has been about getting its’ products in the hands of its’ consumers fast. Now, a recent projection shows that the retail giant will be able to provide same-day delivery to 31% of its’ customers by 2015. The projection comes from global supply chain and logistics consulting firm MWPVL. President and CEO Marc Wulfraat released the projections. At a Wells Fargo Securities webinar, Marc stated, “The concept of same-day delivery is quickly becoming a competitive requirement rather than a nice-to-have service in key markets such as Los Angeles, San Francisco and New York, where people are willing to pay a premium for this service”.

He also added that he felt Amazon wants to offer same-day delivery in the top 40 North American cities by population and that would give about half of US consumers access to same-day delivery. Amazon has not commented on the MWPVL projections, but they do make a lot of sense. Amazon’s Local Express same-day delivery program currently operates in 11 cities and metropolitan areas. Those cities include New York, Chicago, Boston, Philadelphia, Las Vegas, Washington, D.C., Phoenix, Seattle, Baltimore, Indianapolis and the metro area of San Bernardino, CA, according to Amazon. These cities give Amazon access to 21% of the US population. Therefore, it appears with simply more growth, the reach will expand to 31%.

Earlier this week, Bezos released his annual shareholder letter, in which he promised more “innovation” in fast deliveries, including the use of drones. The letter also said Amazon’s plan to expand Sunday deliveries “to a large portion of the US population” this year. He did not mention specifically same-day delivery. Amazon partnered with the US Postal Service in November of last year to launch Sunday delivery in New York City and Los Angeles. With the physical assets of the USPS and its’ need for revenue, this relationship will probably expand.

Amazon states it operates over 40 US distribution centers. This is what will be one of the major keys for Amazon to successfully offer the fast delivers that its’ after. Same-day couriers like A-1 Express can become a partner with Amazon to make their same-day delivery plans a reality. This San Francisco Courier has a national footprint and can help Amazon expand its’ current Amazon’s Local Express same-day delivery program quickly. There’s nothing like partnering with a company like A-1 Express, which is an expert in same-day delivery. A-1 Express can also be a great option for fast customer order replacements, delivery errors and returns.

Reference: 4.11.14, Internet Retailer, Thad Reuter, Amazon’s same-day delivery could soon reach 31% of U.S. consumers

Retailers Offer The Right Formula For Same-Day Delivery

Many retailers are in the race for same-day delivery. It is a service that has emerged as the key to unlock success in the online retail industry and growth for brick-and-mortar retailers as well. EBay, Amazon, Google, Target, Wal-Mart, and even the USPS, have all implemented some form of same-day delivery. These well-known retailers and more, are all seeking the right formula for same-day delivery to work.

The New York Times recently reported that retailers are warring regarding same-day delivery and who will make it to the last mile. The article discusses several e-retailers and the formula they are using to win the same-day delivery race. EBay uses its' bike riders, or "valets", to make deliveries within "about an hour", for a $5 fee with a minimum $25 purchase. EBay is planning to waive its' $5 delivery fee between Dec. 21 through Dec. 24 and will extend its' service hours between Dec. 16 through Dec. 23. The retailer is also planning to expand into 25 more US cities.

“One thing Amazon has done very successfully,” Ms. Mulpuru said, “is they’ve owned the entire value chain. They’ve owned the last mile, the moment that matters. That moment is when the package arrives.” She concluded: “Once you can own the moment that matters, you build a loyal customer base.” This was said about Amazon, which has its' on take on how to make same-day delivery successful. Amazon has 40 order fulfillment centers strategically placed all over the US, which cover a total of 80 million square feet of an enormous amount of products. At first Amazon spoke lightly about same-day delivery. However, now the retail giant is offering the service in 11 major US cities. It is highly probable Amazon will continue to expand.

There are other retailers looking for the right formula as well. New start-up Postmates, currently offers same-day delivery in New York, San Francisco and Seattle. Its' formula is utilizing 100 to 200 couriers per week to deliver for them. What is different about Postmates is the retailer has created "surge pricing". When demand for deliveries is higher than the supply of couriers to the point its' couriers are limited, Postmates will charge a higher price to service to its' customers.

Deliv's formula is a crowdsourcing approach. This involves using everyday people, from students to real estate agents, with time on their hands to engage in fast same-day delivery. Now, Kozmo, one of the first online retailers that tried to crack the code on same-day deliver years ago, but failed, is hinting at making another run at it. On the retailers' website, it reads, “Remember us? We’re relaunching soon with the vision to fulfill your online order incredibly fast, and on-demand.” It appears with so many retailers seeking to provide the service, Kozmo feels the time is right to try again, yet will their formula work?

There are a number of directions a retailer can approach same-day delivery, yet ultimately the actual delivery will have to be done on time. A viable option is for a retailer to partner with a Same-Day Courier like A-1 Express to not only perform on-time deliveries, but also help them develop the right formula for same-day delivery to work. This San Francisco Courier has the expertise to quickly implement a courier logistics solution and has the national footprint to help even the largest of retailers thrive using same-day delivery.

Reference: 11.23.13, New York Times, Hilary Stout, In War for Same-Day Delivery, Racing Madly to Go Last Mile