More Battles By E-Retailer Amazon and Competitors For Same-Day Delivery

It is not secret that same-day delivery is what retailers have honed in on and are determined to be the first to the finish line. Newcomers are springing up, roll-outs are being made, and new service innovations are being tossed around, trying to find what will fit. Enormous investments are being made by the largest "e-tailers" in the game, including Amazon, eBay, Google and more. All of them are certain success is at the door, and so the battle continues.

Forbes reported recently about how the battles are intensifying regarding same-day delivery. Each of the big boys are all putting their formula to the test and are now expanding their versions. The idea is to make same-day delivery the norm for shoppers in big, highly populated cities, which will not only help e-tailers, but also brick-and-mortar retailers that manufacture the products. It will be a win-win, but the win only comes with the same-day delivery that works—with longevity. Seeing the growth being made by the heavy hitters, it appears all of them are confident with using their respective delivery models.

Amazon has been quietly after same-day delivery for a while and now the e-tailer has been unfolding more of its' strategy as the battle heats up. The company has announced expanding its' same-day delivery into Los Angeles, San Francisco and Dallas. This means Amazon now has 12 metro cities in which it will offer same-day delivery. For orders placed between 8am and 12:15pm, Amazon will deliver by 9pm the same day. Not only is this coming, but Amazon is planning to bypass a same-day courier for online retail deliveries and perform its' own deliveries. Amazon will launch its' own delivery fleet, consisting of its’ own trucks and drivers. This is also being tested in San Francisco, yet Amazon could be planning to expand it to Los Angeles and New York City.

The e-tail giant may be expanding, however, other competitors are making big moves of their own. EBay has rolled out eBay Now, which offers shoppers a one-to-two hour same-day delivery from local retailers into 25 cities. It has an "AM-PM" approach to its’ service levels. This consists of orders that are placed in the morning, will be delivery that afternoon. Orders placed in the afternoon, will be delivered the following morning. Via EBay Enterprise, the company is also offering a "ship-from-store" product, where customers can have their online orders picked up from a physical store, and then, delivered to their front door.

Google is battling with its' Google Shopping Express, expanding into West Los Angeles and Manhattan. Newcomer Uber, has now launched UberRUSH, which includes delivering packages via a mobile app using the same transportation arrangement it has with its' urban passengers. Uber's charge is a flat $15 within a certain delivery zone and $5 more bucks for an outer zone delivery.

Which of these e-tailer's models will work? Time and results will tell. Another viable option for e-tailers and brick-and-mortar stores is to turn to partnering with a same-day courier like A-1 Express. This Los Angeles Courier has the courier expertise and technology to implement a cost-effective delivery solution. A-1 Express has a nationwide footprint as well, able to roll-out same-day delivery in the US cities where retailers want it the most.

Reference: 5.6.14, www.forbes.com, Robert Bowman, Battle Intensifies for Local and Same-Day Delivery Service by Amazon and Its Rivals

Amazon Revamping Delivery Network, Could Turn To Using Same-Day Courier

Amazon knows what it takes to do retail, as it continues to beat the competition online. What the retailer feels it needs improvement in is its’ delivery network. Last year’s Christmas shopping season turned out to be a disaster for the retail giant, as their primary partner UPS failed to deliver on-time, not to mention other deliveries. It became clear that the delivery of the product is just as important as the purchase itself. The buying is the shopper’s part. The delivery is Amazon’s. It wants to make its’ delivery network stronger and Amazon is evaluating how this can get done.

The article covered the grocery and general merchandise delivery options Amazon can choose to implement to get the results it wants. A parcel carrier could work, which could entail the carrier bringing the general merchandise from their sorting location, and combine it with the grocery delivery truck at the Amazon fulfillment center. It would be very challenging to get the delivery done the same-day. Here are some of the quoted changes Amazon stated it will implement to revamp its’ delivery network:

• UPS, who has been the primary carrier, will be replaced by a network of regional carriers.
• The top 40 markets will be served by a private fleet being built by Amazon to support an expansion of its online grocery business” (Amazon Fresh). This means there will be a big expansion from the three metro areas currently served by Amazon Fresh.
• The private fleet network will co-mingle groceries with general merchandise.
• Orders will be routed through Amazon’s 55 fulfillment centers, with deliveries made the same day, the next day or, at most in two days.

The main discussion in the Forbes article was whether utilizing a same-day courier could be the key to the optimal delivery revamping that Amazon is looking for. The advantage of using a courier is a courier specializes in same-day delivery. This is their expertise and they are reliable at doing it. A courier service can transport general merchandise and groceries directly from point-to-point within hours. Same-day delivery is the goal for AmazonFresh, which currently is rolled out in a small number of markets.

The disadvantage of using a courier is primarily the cost. For this type of service, a courier can be expensive. Yet, with a same-day courier like A-1 Express within a market with the right demographics, such as San Francisco, pricing can be lowered and there will be high volume in big cities. It makes sense to use this Los Angeles Courier solely or in conjunction with a private fleet. A courier is also a great source to correct delivery errors, redeliveries and product returns.

Amazon indeed has high expectations and so does its’ customers. Whether groceries or general merchandise, Amazon has to deliver or its’ competitors will. Wal-Mart, for example, has launched a same-day grocery service of its’ own. “WalMarttoGo” not only offers same-day delivery of groceries ordered online, but shoppers can also pick up their order at a local Wal-Mart store. This isn’t an option that Amazon has for its’ shoppers. Amazon’s delivery network has to be effective to compete long-term.

Reference: 3.19.14, Forbes Magazine, Steve Banker, Amazon Revamps Its U.S. Delivery Network

E-Retail Jumps 16% In 2nd Quarter, Retailers Can Grow With Same-Day Delivery

E-Retail is where many businesses are turning to for growth. Many customers are seeking to save as many cents as they can, including when it comes to making their purchases. Retail companies are doing the same and e-retail is how to get it done. It is a great combination between retailer and consumer, in which every one is winning.

As a result, it is reported by Internet Retailer that e-retail sales increased 16% in the second quarter of this year. These figures were gathered from web measurement firm comScore Inc. The figures for US online spending rose to $49.84 billion for the quarter, versus $43.15 billion in the same quarter in 2012. This increase follows a great start during the first quarter of the year with a 13% growth as well. This also marks the 15th consecutive positive quarter for e-commerce growth and the 11th consecutive quarter with double-digit growth.

Interestingly enough, the report showed that consumer spending via smartphones and tablet increased 24% this quarter, versus last year. This equates to $4.7 billion for the quarter. Coined as mobile commerce, or m-commerce, was measured and provided by comScore only for the second time. The company only started reporting the figures in the first quarter this year.

This growth set the pace for the entire year and the remainder of it will more than likely be no different, especially with the holiday season approaching. In the report, comScore chairman Gian Fulgoni stated, "increased spending growth for the quarter not only reflects the long term share shift towards digital commerce, but also the near-term signals of sustained improvement in consumer sentiment. This strength is particularly significant since the second quarter tends to be seasonally lighter for e-commerce, and, as such, represents a positive indicator for the back half of the year.”

As the year moves on, there may be new strategies e-retailers put in place to grab as many shoppers as they can. One online retail strategy retailers are implementing is same-day delivery, making it hard for consumers to resist their online deals. Large companies, such as Wal-Mart, Target, Macy’s, eBay, and others are all testing same-day delivery on various levels throughout the US. Many experts agree that even Amazon is building distribution centers closer and closer to its’ shoppers, enabling the retail giant to support some type of same-day delivery solution.

There is no doubt a developed order fulfillment strategy is going to be key in the months ahead. Same-day couriers such as A-1 Express are superior as they come regarding getting your online products into your customers’ hands fast. A-1 Express has a national footprint as well, positioning the Los Angeles Courier to meet any retailer same-day delivery needs. A-1 Express can develop a complete nationwide courier logistics solution that fit your e-commerce goals. The expectations are high in e-retail and there would be nothing better than to partner with A-1 Express to compete in the months to come.

Reference: Internet Retailer, Thad Reuter, E-retail rises 16% in the second quarter

Will Amazon Begin Same-Day Delivery Of Groceries?

There's no bigger online retailer than Amazon. The online giant has the lead competition for several years with innovative delivery and shipping methods, including Amazon Prime and Amazon Lockers. Its' product line has involved virtually any consumer product you could name and have it shipped quickly to you, with the exception of food on a major scale. However, from recent reports, it appears online groceries will be next on Amazon's list.

Reuters has reported Amazon will roll out an online grocery business expansion plan, which will incorporate the selling of food with high-margin item deliveries within the same order. Its' grocery business AmazonFresh is not new, but rather has been tested for at least five years in Seattle, its' hometown. Amazon has utilized its' own fleet of trucks to perform deliveries of fresh food products. With the testing of the service, Amazon appears to be ready to expand into Los Angeles this month and also San Francisco later in the year.

Experts approve of the move forward for the new online grocery business, apparently hailed to be tried and tested by Amazon. "Amazon has been testing this for years and now it's time for them to harvest what they've learned by expanding outside Seattle," said Bishop, chief architect at Brick Meets Click, a consulting firm. He continued, "The fear is that grocery is a loss leader and Amazon will make a profit on sales of other products ordered online at the same time. That's an awesomely scary prospect for the grocery business."

AmazonFresh will have the warehouse capability to accommodate the big move as well. Amazon will have new warehouses that can store one million general merchandise products, as well as refrigeration areas for food. The online company has no trouble building needed facilities to specific areas of the US to meet their online demand. Amazon has opened 20 distribution centers and 79 fulfillment centers worldwide as of 2013. This is not including an announcement to build three new distribution centers in Texas earlier this year.

The combination of food and retail products within one order is what will make the difference in making online grocery delivery successful. However, with this being food, the question still remains what effective method of delivery will be used to get these items in hands of online shoppers? It only makes sense that online groceries will require same-day delivery to make it work. Amazon will encounter online grocery chain competitors such as Wal-Mart, which is already testing same-day delivery within San Francisco and other US cities.

The key for AmazonFresh will be to deliver its' online food products cost effectively on a large scale and fast. Same-day couriers like A-1 Express will be just the right fit for the delivery demands nationwide it will require. The Los Angeles Courier has a national footprint, which will enable Amazon to have one partner for an optimal same-day delivery logistics solution. With its' courier expertise, A-1 Express will be able to provide quick implementation of food deliveries and keep up with ongoing online grocery service growth.

References: 6.4.13, Reuters.com, Alistair Barr, Amazon plans big expansion of online grocery business: sources

Wall Street Transcript Forecasts Consumer Demand To Increase For Same-Day Delivery

In recent years, there has been a growing pursuit of same-day delivery by online retailers. E-commerce is currently growing at an annual rate of 16% per year. With the use of mobile devices, such as ipads, smartphones and tablets, many experts forecast online business shows no signs of slowing down. As online growth increases, the option for same-day delivery is increasing as a viable option for online orders.

According to the Wall Street Transcript, same-day delivery will not only be a viable option, but will become a standard consumer demand within the e-retail industry. It has just published an internet services report, reviewing topics such as increased mobile content traffic, Chinese online monetization trends, internet infrastructure and services consolidation, an social networking economics. The report informs serious investors and industry executives of what is forecasted to come regarding certain sectors. The feature provides interviews with public company CEOs and Equity Analysts regarding the discussed industries.

Within the report, the companies discussed are online retailers involved in some level of same-day delivery and online shipping. Those included in the report are Amazon, Google, eBay, Nordstrom, Yahoo, and more. Within one of the report excerpts, an expert analyst discusses the outlook of the industry and what is to come for the online retail industry. One question the expert was asked to talk about was the next battle within the e-commerce war. The above mentioned companies are engaged in fulfillment and omnichannel capabilities within e-commerce. With online giants such as Amazon and eBay, the expert also discussed other players in the e-commerce war that will have an impact on the industry in the future.

Mr. Pitz offers insight on the companies and the impact of same-day delivery. One of his quotes from the report regarding online retailers was he stated, "We believe as companies including Amazon continue to build out their capabilities in same-day delivery, same-day delivery eventually becomes a have-to-have for the average consumer, although that customer may not even know it yet". He mentions same-day delivery will shift into the same scale of demand as two-day shipping, which Amazon launched years ago. Same-day delivery will become a value-added service to consumers.

He continued on regarding Amazon being a key player, driving the offer of the same-day delivery option to consumers. "So we believe Amazon will continue to raise the bar and provide consumers with the merchandise that they thought they would receive in two days, but actually receive in one day or less", stated Mr. Pitz. Amazon-owned companies such as Quidsi, has brands Soap.com and Diapers.com, which are successfully offering same-day delivery. Amazon also implemented in its' fulfillment centers what is called the Kiva System. This system is used to optimize small package shipments and improves productivity for shipping. With Amazon using this system, the company will continue to create efficiencies and ship faster.

The direction is clear that same-day delivery is creating a major revolution in the business world and brick-and-mortar stores have to make the shift. Large retailers such as Wal-Mart, Macy's, and Target are testing same-day delivery as well. Same-day courier services like A-1 Express can be partners of Amazon, Wal-Mart, or any other retailer seeking to provide same-day delivery. The Los Angeles Courier has a national footprint and can quickly implement a courier logistics solution for the increase of consumer demand for same-day delivery to come.

References: 5.21.13, Yahoo News, The Wall Street Transcript, Consumers Expected to Start Demanding Same-Day Delivery Shipping as an Increasing Number of Online Retailers Begin to Offer the Option