Why Are Big Retailers Pursuing Same-Day Delivery?
There are a lot of retailers out there that aren't playing around when it comes to same-day delivery. These retailers have become very serious and focused about utilizing this level of service. Big retailers are definitely after the service, as two of the biggest have thrown blow for blow in the ring of retail competition. The latest news from some of them let's us know that same-day delivery must have the right key to unlock major sales, especially online, in the years to come.
Google just announced that it will begin rolling out same-day delivery of books for the biggest book retail store chain around--Barnes & Noble. The Nasdaq reported that Google is competing with Amazon for online book territory. The two retailers will be offering the service in Manhattan, West Los Angeles and in the San Francisco peninsula. Barnes & Noble is now joining the ranks with Target, Costco, Staples, Wal-Green's and more that have partnered with Google Shopping Express to get their online sales moving upward. After Barnes & Noble had to close 63 stores and Amazon's success in gaining a good portion of the digital book market share, the company had to do something different. Amazon has been like a fast-moving train against the book retailer and now it teams up with Google to make a comeback.
Barnes & Noble CEO Michael P. Huseby said in The New York Times why it made the deal with Google. Huseby stated the deal was "a test" that he viewed as a way to increase the bookseller's online reach and improve sales from its physical stores. "It's our attempt to link the digital and physical", he stated. Google is helping other physical store retailers do the same thing, and so the same-day delivery service is now in hot pursuit. It is also a way to compete on Amazon level, which recently expanded its' same-day delivery reach in 6 more US cities.
Barnes & Noble's service with Google will offer customers a choice of these same-day delivery windows: 9am to 1pm, 1pm to 5pm and 6pm to 10 pm daily. These windows are wide enough to pick up and deliver books on time as well. Google Shopping Express will have its' employees at Barnes & Noble ready to get the customer's order and deliver it to the final destination.
Google's approach to same-day delivery is partnering with brick-and-mortar retailers that already have the physical stores that act as order fulfillment centers to meet online demand. This removes an extra expense for Google, yet at the same time, it will utilize a Same-Day Courier to pick up and deliver the online orders. On the other hand, Amazon has strategically built warehouses to create a very comprehensive network for sourcing these items and will use its' own trucking fleet to deliver them. With these logistically-efficient warehouses in close proximity to big US cities, Amazon feels confident that their business strategy will beat out the competition.
Same-day delivery via Google's Shopping Express could be what Barnes & Noble needs to compete online. Amazon and Google aren't the only ones chasing same-day delivery, even Wal-Mart, eBay, Macy's and others all offer some form of the service. It is in pursuit because of e-commerce and technology are changed the way we have to do business. More and more physical store retailers have to shift to survive and thrive. Shoppers are at home now , therefore, retailers have to come to them and make it attractive online. A-1 Express is a Charlotte Courier that can help retailers thrive this year.
Reference: 8.10.14, www.nasdaq.com, Motley Fool, Can Same-Day Delivery of Books Help Google Take on Amazon?
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