Amazon Looking To Launch Same-Day Delivery Groceries In Bay Area

A lot of retailers are getting involved with same-day delivery for all types of products. Google is testing the service with everyday products from Target, American Eagle Outfitters and more. Wal-Mart is doing various items of same-day delivery in US cities and China, even offering same-day grocery delivery. This is a service retail giant Amazon is currently offering in its’ hometown Seattle, yet they now have their sights on launching the service in the San Francisco Bay Area.

The San Francisco Business Times has reported some recent findings via the Wall Street Journal that Amazon is preparing to begin same-day grocery delivery in the Bay Area. This same-day grocery service is known as AmazonFresh. The company now has a warehouse about 60 miles from San Francisco and San Jose. It appears they have positioned a location within a close proximity in order to provide the service. Amazon has had this service for over five years in Seattle and has recently launched same-day delivery in Los Angeles. It is no surprise the well-known retailer is expanding there.

Amazon has mentioned a number of job listings as the company gears up to operate in the Bay Area. They have positions available for quality assurance and research & development, which the company mentions that candidate will have to manage a large fulfillment network. To successfully tackle a new service such as this, Amazon is going to need some great people. The question is will they partner with  like A-1 Express to perform the actual grocery deliveries or will Amazon hire its’ own drivers.

Amazon isn’t the only company implementing same-day delivery for groceries in the Bay Area. Wal-Mart is doing it already. Also, Instacart and PostMate have their hand in the jar and offering same-day grocery deliveries. Amazon is leading the pack regarding the emergence of online retail and is growing at a fast rate. Physical retailers like Target, Best Buy, Macy’s, Staples, and others have all jumped in as well to increase their store sales by creating an outlet for selling online. The e-commerce industry is growing at 16% per year and may growing at 17% by year’s end. There is the reason for investing in producing sales where most people hang out, which is online.

One thing is for sure, retailers must have found a certain niche that same-day grocery service will provide in the coming years ahead. Same-day delivery is an innovative service; however, some experts do not think it is sustainable. The price to make it attractive to shoppers can not continue and will end up costing retailers a lot more than they’ll end up making. This will result in inevitable service cost increases for the customers, which will in turn, drive shoppers back to brick-and-mortar retail store locations.

Regardless, same-day delivery of groceries appears to be a great fit because it benefits the customers relative to their time and having to commute to the physical store themselves. Customers may not mind paying an additional charge along with their grocery bill because it makes sense. A-1 Express is a San Francisco Courier that can team up with retailers to implement a sound same-day delivery grocery solution.

Reference: 10.8.13, San Francisco Business Times, Renee Frojo, Amazon moves toward same-day grocery delivery in Bay Area

Staples Match Amazon’s Prices, Could Use Same-Day Courier

When it comes to competing for online business in the US, companies have to do what it takes in the retail industry. Staples is one company that is after the online market but is competing in a different way. With physical stores at their disposal to sell products, the retailer has come up with a great strategy to generate sales. The change probably could not have come at a better time with the holiday season almost officially upon us.

Staples has decided to match Amazon’s prices for the holiday season. The office retail giant will match online and in-store pricing for all their customers. The new “Price Match Guarantee” program only applies to Amazon purchases. Staples also stated that that it also applies to “any retailer who sells products in both retail stores and online under the same brand”. Customers will be able to take advantage of the deal beginning November 1st.

Staples is not the first big name retailer to offer a price-matching program. Other retailers such as Toys-R-Us, Fab.com and Target. This is a great strategic move for retailers to get a head start on online shopping, especially when competing to retail leaders like Amazon. The price matching should attract many shoppers to at least come to the Staples web site to compare the costs. Shoppers are looking at their bottom line more than ever and every bit of money they can save will be worth it. Without the price-matching program, brick-and –mortar companies like Staples won’t be able to keep up with the growth of Amazon.

Senior VP of North American stores and online Marketing stated in the report her her take on the holiday pricing initiative. She stated, “Staples is committed to offering great products at the best prices. Whether shopping in-store or online, Staples customers will be able to shop confidently, during the holiday season and beyond, knowing that we are providing them with all the right products and must-have gifts at the lowest prices.”

The retailer didn’t say how long the price match guarantee program will last. If the service is successful during the holidays, Staples could very well be continue price matching to compete against Amazon. Staples can also compete with Amazon by providing same-day delivery of their online and store products. Amazon continues to build distribution centers throughout the US and many experts agree that the retail giant is gearing up to offer same-day delivery. Amazon already offers same-day grocery services, as well as Wal-Mart.

Staples can offer these types of local deliveries via a Same-Day Courier such as A-1 Express. This Chicago Courier has a national footprint and brings a lot of courier expertise to the table. A-1 Express can not assist Staples in delivering its’ online order from their stores to their customers’ destination, but also their customers can be recommended by Staples to pick up their store orders. This holiday season, online retail is expected to grow this year once again, therefore, same-day delivery can make Staples more attractive, not just the price matching.

Reference: 10.10.13, Internet Retailer, Thad Reuter, Staples Matches Amazon’s Prices

Amazon Begins New Tax Deal, May Implement Same-Day Delivery

The largest online retailer in the world is no other than Amazon, and the pack is trying to follow their lead. Expansion for the online giant appears to be effortless, even in regards to the transition into state sales tax collections. As Amazon builds more distribution facilities in various states, the more tax collections begin. The latest tax deal for Amazon is now in Maryland.

Internet Retailer has reported Amazon has announced Maryland is the newest state it will begin collecting taxes in. The retail giant is planning to build a 1-million-square-feet distribution center in the city of Baltimore. As a result, taxes will begin to be extended to the residents of Maryland, which makes this the 15th state in the US for Amazon. It has not been disclosed when Amazon's distribution center will open, however, more than likely it will soon. The new facility will also bring an increase in employment to the area. Amazon expects to create over 1,000 jobs to operate their new facility. With a growing, yet slow economy, the new move will turn out to benefit Amazon and the state of Maryland.

This will be the company's first physical presence in Maryland. With adding this state to its' belt, Amazon will now have tax collections for over 50% of the US population. This is very large figure for the e-retailer to now be reaching. There is no telling what their business strategy is in the coming years ahead. Amazon will not be building the facility from the ground up. Instead, it is working toward building the facility on a former industrial property used by a General Motors Corporation plant in the port of Baltimore. This reaffirms that Amazon will not waste any time getting this facility built, as it continues to move at a pace its' competitors are having to keep up with.

Amazon may be new to the state, but not to the northeast region. Late last year, Connecticut was added to the list, in which Amazon agreed to make a $50 million investment to build a distribution center there. Virginia, Arizona and New Jersey were added in 2013 as well. In 2012, the retailer started collecting sales tax in Pennsylvania, California, Texas, and Massachusetts. Amazon will also begin new tax collections in Wisconsin on November 1st of this year. To date, Amazon has opened 40 distribution centers and 89 fulfillment centers worldwide.

At this pace, it appears Amazon will at some point be collecting sales tax in every state in the country. What that means is the company will probably have a physical presence in every state as well. With this level of reach that Amazon will have to their customers, it very well may be gearing up to provide same-day delivery nationwide. Large retailers such as eBay, Wal-Mart, Macy's, Target, Google, and more have all started testing and implementing same-day delivery in various US cities. Online retail is growing annually by 16% and may reach 17% this year. With this type of growth, having the ability to offer same-day delivery makes online purchasing even more attractive and convenient for shoppers.

It is clear that Amazon will have some form of delivery system to meet the needs of its' customers, especially having multiple distribution centers throughout the US. Amazon is more and more closer to their customers, therefore, same-day delivery would make sense. The e-retailer could partner with a Same-Day Courier such as A-1 Express to help it quickly implement a same-day delivery solution nationwide. This Baltimore Courier has a national footprint and a superior courier technology-based operation, enabling the courier to successfully offer same-day delivery on a large scale. This would be ideal for a well-known online retail company like Amazon, as it continues to rapidly expand its' market.

References: 10.25.13, Internet Retailer, Paul Demery, Amazon's New Tax State

Click And Mortar Is How To Compete With Amazon, Use Same-Day Couriers To Deliver

It appears nothing is going to stop e-commerce from continuing to flood the retail market. With ipads, tablets, and other tech gadgets at the disposal of shoppers, retailers have accepted that they must find a way to interact with effectively selling online. Retailers now have probably found the best route to connect the physical brick-and-mortar location with online shopping. This may also be the best route to take to compete against the number one e-retailer in the world—Amazon.

Amazon is growing fast and retailers are after finding a niche to compete. In a recent report by Reuters, Experts are finding that “click and mortar”, or “click and pick”, is the best way for retailers to compete against Amazon. Click and mortar is a service that consists of the shopper having the ability to purchase items online and then going to pick up those items from their nearest local retail store. It combines store and online shopping.

It is interesting that click and mortar is not just a service being implemented in the US, but around the world. For example, the same competition is occurring in Britian regarding e-retail. Georges Plassat, head of Carrefour, spoke highly of click and mortar. He stated in the report, "I am totally convinced that click and mortar is the future". Carrefour is the number two retailer in the world. As big the company is, they are finding that it must have some form of success online. They cannot allow e-retailers like Amazon to gain too much e-commerce ground.

Another statistic to inform us of the global state of retail is a survey conducted by the Australian Centre of Retail Studies. It stated that 68% of retailers believe physical stores will remain the most important channel for shoppers, regardless of e-retailers. It will be a challenge for even e-retailers like Amazon, to be the bedrock for retail shopping within itself. However, it definitely can affect the pace of growth for physical stores. Mobile commerce is emerging as a force for e-retail as well.

E-retailers, specifically Amazon, are being seen as a threat to physical stores and some retailers taken the retail giant seriously enough to act. "Customers want to combine pure online with visiting stores. Stores have a big role to play," said Mark Lewis, head of John Lewis Online, a division of John Lewis, Britain’s biggest department store firm. The online company accounts for over 25% of group sales and is expected to reach 40%. This brings to mind retailers like Wal-Mart, which have implemented click and mortar to compete. Wal-Mart, Macy’s, Target, and others have also launched same-day delivery to offer shoppers the option of delivering their online purchases right to their front door.

Retailers that offer click and mortar can partner with same-day couriers like A-1 Express to offer innovative services like same-day delivery. As a partner, A-1 Express can be a recommended one-stop source for same-day delivery that customers are referred to. Therefore, instead of the shopper having only one option to pick it up themselves, they can as call on the San Jose Courier to deliver their online items directly to them.

Reference: 10.9.13, Reuters, Emma Thomasson and Dominique Vidalon, Retailers see "click and mortar" as way to beat Amazon

Holiday Sales Expected To Rise 15%, Can use Same-Day Courier To Meet Shopping Demand

The holiday shopping season is almost here, and retailers are getting ready for another big sales year. Shoppers are known to be going into the physical stores to make their gift purchases, yet it is likely what will have a big year will be sale online. Shop.org has released some new information regarding the online holiday season, and their forecasts suggest this will probably be the greatest year for e-retailers.

Internet Retailer reported that Shop.org has released some headline forecasts that e-retail sales will increase between 13% and 15% this year. Holiday web sales are expected to reach $82 billion in November and December as well. Shop.org is the e-commerce arm of the well-known National Retail Federation (NRF). The NRF estimates the total US retail sales for the two major holiday months will increase 6.9% from 2012 to $602.1 billion. These are impressive numbers for the holiday season, especially in regards to slow-growth economy.

Other market research firms weighed in on this year’s online shopping forecasts. EMarketer stated in the report it projects US holiday e-retail sales will increase 15.1% this year in comparison to 2012. Deloitte LLP stated it expects US non-store sales will jump 12.5% to 13%. Shop.org was able to produce these its’ projections based on governmental data. The data types included account consumer confidence, monthly retail sales increases, disposable personal income, and other factors. Online retail has consistently grown 16% overall in recent years, and it appears 2013 will be no different.

The growth of technology usage will have a great impact on this year’s holiday shopping as well. Matthew Shay, NRF President and CEO, stated in the report, “Online and mobile continue to be a leading area of growth for retailers. In this economy savvy, cost-conscious consumers go to the web to do their research and get the best bang for their buck. In addition to researching what their peers are saying online about products and gifts this holiday season, consumers will use the buy online, pick-up in store option, retailers’ apps and mobile websites to find something special for their loved ones.”

There will be shorter time frames this holiday season between holidays than last year. There will only be 25 shopping days between Thanksgiving and Christmas, versus 31 days in 2012. Also, consumers will have only four full weekends versus five last year to shop. This will more than likely steer shoppers to be focused and utilize mobile retail to make the purchases they are looking for. E-retailers are gearing up to use same-day delivery for online sales as well.

With the holiday sales growth expected to occur, e-retailers can partner with Same-Day Couriers like A-1 Express to create new innovative ways to meet their online demand. A-1 Express can deliver their customers’ online purchases right their doorsteps within hours. The Chicago Courier also has a national footprint, enabling the company to be a one-stop courier for any e-retailer. At the pace e-retail is going, orders will have to be fulfilled quickly and effectively, which A-1 Express has the courier expertise to develop a sound same-day delivery solution.

Reference: 10.3.13, Internet Retailer,Thad Reuter, E-retail could jump 15% this holiday season