Monthly Archives: August 2015

Target Goes Fast With Ship-From-Store Deliveries

Atlanta CourierIt’s not going to be Macy’s and Wal-Mart having all of the fun with boosting and putting muscle on their online retail.  Target has plans to get their e-commerce to gain more of the market by shipping from their brick-and-mortar stores.

Target has announced that it plans to expand its ship-from-store capabilities after strong sales results its’ second quarter this year.  Internet Retailer reported that Target’s online sales grew 26.1% over this same time last year.  E-commerce accounted for 2.7% of the retailer’s sales overall in the second quarter, equating to $470.529 million.  Its’ e-commerce accounted for 2.2% of Target’s overall sales, equating to $373.054 million, in the same quarter last year.  Target is doing something right online.

CEO Brian Cornell discussed the growth benefits of shipping from their stores.  “Ship-from-store capabilities allow us to balance inventory across the network, leverage the capital and labor already in our stores, and reach guests more quickly,” he told analysts. He also mentioned Target’s testing of its’ “available-to-promise” pilot program, offering guaranteed packages will be received within 2-3 days.  “If the guest orders on a specific date, we believe this capability will drive further increases in digital conversion rates, which are already improving rapidly as guests respond to a faster and firmer delivery commitment,” he said.

With same-day delivery, having physical stores to fall back on is something that web-based only retailers don’t have.  It is another element that can make or break the trending service.  E-retail giant eBay just ended its’ three-year involvement with its’ same-day strategy. EBay Now has been officially pulled, yet eBay mentioned how the company would continue to explore delivery options of buying online and pick-up in stores.   If eBay would have been a physical store retailer, maybe more innovation could have been tested.  This attests to the power of having physical store locations that act as warehouses for retailers.

Target can be versatile as a retailer providing the products that makes ship-from-store deliveries attractive.  Shoppers need time-sensitive items like groceries, baby items, household goods, and clothing that make same-day delivery work. Amazon, although web-based, has thousands of products offered online, yet as the same time, has a very efficient delivery system from multiple fulfillment centers nationwide. Now Amazon is offering free same-day delivery via Prime Now in multiple US cities, making it imperative for Target and others to compete.

Google partners Toys-R-Us, BestBuy, Wal-Green’s,and even Target, to perform same-day delivery for them to push their retail products out of their stores. More retailers are following suit, using a same-day courier to pick up and deliver for them. AQuickDelivery is an Atlanta Courier that offers same-day delivery, store pick-up services, and more for retailers in need of innovative fast shipping. Target can utilize the courier for ship-from-store deliveries, even within an hour. With expanding its’ store shipping reach, Target hopes to get its’ shoppers the convenience they’re after.

Reference:  8.19.15, www.internetretailer.com, Matt Lindner, Target goes full speed with ship-from-store

Macy’s Enters Into World of Same-Day Delivery Service

Same Day DeliveryAs reported by Reuters on July 22, the nation’s largest department store, Macy’s, plans to expand its same-day delivery service offerings to additional regions by the end of summer. Macy’s currently offers same-day delivery service of select products in eight test markets: Houston, San Francisco, San Jose, Seattle, Chicago, New Jersey, and Washington D.C. Macy’s did not specify to which new markets this same-day delivery service would be moving, but did cite the cost would be only $5 for customers.  Of the shift in paradigm for the retailer, CFO Karen Hoguet says, “If you need something today and you are in a market that doesn’t have same-day delivery yet, the online pick-up and store helps with that or even next day. And by having inventory closer to the customer, that’s a huge competitive advantage for us in terms of satisfying what the customers are looking for. So I see that’s going to continue to be important and more obviously focused on that…”

The recent announcement has sparked discussion of the competition Macy’s same-day delivery would provide to online retail giant, Amazon, who now has same-day delivery in 14 markets and growing. Financial services firm, Cowen, recently predicted Amazon’s apparel sales would eclipse Macy’s by 2017 making Amazon the nation’s largest clothing retailer, but this newest announcement in business plan from Macy’s could change that.

According to Reuters, Macy’s currently has 886 stores throughout the U.S. from which to select when needing merchandise for same-day delivery, whereas Amazon only has approximately 50 fulfillment centers and distribution warehouses from which to gather products. The difference in volume of facilities from which to garner necessary products to fulfill customers’ orders on a same-day basis, gives Macy’s a huge advantage over online retailers, particularly Amazon. Macy’s step into the same-day delivery arena could prompt other chain retailers to do the same causing an even greater need for same-day courier services.

The push for brick and mortar, as well as online retailers, to offer same-day delivery in markets across the nation is a new trend that businesses are being forced to keep up with or suffer loss in profit margins. Today’s customers want the instant gratification of products delivered to their doorsteps, and the wait time for orders is something strongly considered by consumers before deciding to place an order. Atlanta’s courier, AQuickDelivery, provides this same-day delivery option for small and large businesses alike. Be it a small, local delivery, or a larger national delivery, AQuickDelivery has options to fulfill your courier needs.

With its own delivery fleet, AQuickDelivery provides efficient, timely deliveries that are economical for both sender and recipient. The full-scale, comprehensive courier service offerings through AQuickDelivery are unbeatable. From same-day delivery from the fulfillment centers of online retailers or the inventory of a brick and mortar retailer, to the management of a fleet or mail center for small and local businesses, partnering with the same day courier is sure to be of benefit to your business. Call our knowledgeable sales staff today at 404-888-9999 to begin your AQuickDelivery experience.

Reference: PYMNTS.Com.” PYMNTScom. Web. 2 Aug. 2015.

EBay Pulls EBay Now Same-Day Delivery in the US

Same Day DeliveryIt has been a very competitive race among three of the largest web-based retailers in the world involving fast delivery. Google, eBay and Amazon have all had their respective places in same-day delivery in recent years.  All of them appeared to be in the hunt long-term; however, one of them just announced its’ opt out of continuing with same-day delivery.

EBay has decided to shut down eBay Now in the US, the name of its’ same-day delivery service it launched three years ago. CNet.com reported how the retailer is scaling back on three less popular apps — eBay Motors, eBay Fashion and eBay Valet — to cut down customer confusion and streamline attention to it’s primary eBay app. It did the same with eBay Now late last year, as Former CEO John Donahoe said the service is “not essential to our core target customer”.  The retail giant even made purchase of London-based delivery company Shutl and it appeared it was going to make a huge push to implement last-mile deliveries in the US. It’s clear that eBay has made a business model turn in another direction.

The service will be ramped down by this Friday.  EBay had already began slowly cutting away at the service, moving forward with stopping the same-day delivery pilot program in Brooklyn last December.  In all, the Brooklyn program involved roughly 80 local merchants.  Many of these merchants may partner with a same-day courier like AQuickDelivery to continue with offering same-day delivery to their customers.  Same-day delivery is beyond just a trend now, but is a key to attracting shoppers to buy from retailers online and in-store.  Finally, for shoppers and retailers, convenience is literally at the door.

Convenience is at the door for retailers because same-day delivery is able to be a viable, profitable service for those that can do it right. Companies like Google and Amazon are driving same-day service growth.  Google is has Google Express in major US cities, from New York to San Francisco.  It has partnered with large brick-and-mortar retailers like Target, BestBuy, Wal-Green’s, Toys-R-Us, and others looking to compete online, while selling store inventory at the same time.

Amazon has even recently launched free same-day delivery for Prime members.  Prime Now was $7.99 and its’ two-hour delivery is free. Now, Amazon has rolled out free service in several major US cities, including the San Francisco Bay Area, Baltimore, Dallas-Fort Worth, Indianapolis, Philadelphia, Phoenix, San Diego, Seattle-Tacoma, Tampa Bay, Washington DC, Boston, New York, and Atlanta. The launch involves more than 500 cities and towns, plus more cities in the coming years.  Google and Amazon have thousands of retail products as their disposal that shoppers want.

“We continue to explore a variety of delivery options such as buy-online-pickup-in-store,” an eBay spokeswoman said in the article.  They also provided insight into why the company decided to end eBay Now. One reason stated was that same-day deliveries made more sense for items that customers would need quickly — like groceries or diapers — versus eBay’s primary offerings, such as collectibles, antiques and vintage clothing. Also, the spokeswoman stated that these same-day delivery networks tended to exclude eBay’s core of smaller merchants, since many don’t have storefronts or warehouses.

Same-day delivery is a huge service to tackle to do it well on a broad scale. Not to mention, it is currently highly competitive. However, a retailer can partner with the right delivery company and thrive. AQuickDelivery is a Atlanta Courier that has extensive courier expertise that retailers can use and it has a national footprint to meet large retailer needs.

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