Monthly Archives: December 2015

Competing Against Amazon’s Same-Day Delivery

Atlanta CourierIt’s not just what Amazon is doing, but it’s how it is doing it that is giving retailers and businesses a competition they haven’t seen before online.  The e-retailer already had plenty of market share, but the addition of free same-day delivery is creating more distance between it and store retailers that have become comfortable with the normal e-commerce.  Online retail is on the rise, even expected to generate $500 billion by 2018.  In an article by the New York Post, in just this past year alone, total e-commerce sales were estimated at reaching $300 billion for 2015, and grew faster than traditional retail sales.

This equates to a shift of multiple retailers toward enhancing their online presence and treating the web as if it’s a physical store. It does command attention and strategy to grow sales, as technology is making shopping easier online.  Amazon is mastering how to literally deliver online and retailers have taken notice.  Macy’s has partnered with Deliv since 2013, seeing that it had to dive into same-day services years ago.  It appears to be paying off, as now the department store leader has same-day delivery in more US big city markets than Amazon.  With hundreds of stores in the US, Macy’s has the in-store warehousing capabilities to not only deliver from stores, but also to provide store pick-up for online orders.

Others are competing with Amazon via same-day delivery as well.  Uber is now testing same-day delivery in several US cities, expanding from just moving people door-to-door.  Moving product is its’ new venture and it couldn’t have come at a better time for the crowdsourcing company.  Etsy ASAP is offering the service and new delivery business Roadie utilizes a new app matching travelers with cargo.  BestBuy, Ace Hardware, Apple, Toys-R-Us, Wal-Green’s, and more have all decided to try its’ hand at same-day delivery, seeking to essentially not get left behind.

“People are getting more and more accustomed to getting what they want, when they want it,” said Deliv Founder and CEO Daphne Carmeli, which is Macy’s delivery partner for same-day delivery.  As this customer want grows, it will become more of a retailer need.  Amazon has positioned itself to be able to get millions of products to the shopper faster than anyone else, and this is causing businesses worldwide to reconsider how to meet this convenience market.

Amazon is even affecting carriers and causing them to engage in same-day delivery globally also.  Deutsche Post DHL Group has announced that it will begin testing same-day delivery via bus in Berlin and Hamburg via its’ Postbus Courier.  After these two cities, DHL plans expand more from there next year.  This past holiday season, the article mentioned how FedEx had its’ busiest peak holiday shipping season ever, which is another carrier that could jump into same-day delivery to compete within the market of customers after seeing DHL.

When a Same-Day Courier like AQuickDelivery meets the delivery demands of a retailer, it makes all of the difference to competing in a fast-pace online market. The Atlanta Courier has the courier logistics expertise and driver fleet to help make a retailer’s same-day service excel.  Whether now or later, to compete with Amazon, retailers will have to heed the trends and offer same-day delivery too.

Reference: 12.27.15, www.nypost.com, Catherine Curan, Companies aim to make shopping even easier

Deutsche Post DHL Group Tests same-day delivery Via Bus

Atlanta CourierIf anyone would have told you ten years ago that same-day delivery would become the key to increasing sales, you probably would have thought it just can’t work. However, big name companies like Amazon, Google, Wal-Mart, BestBuy, and more would beg to differ. Same-day delivery has grown globally to the point where carriers also are seeing how they can implement it within an array of transportation modes they have available.

Most same-day delivery is done via car, or for a Same-Day Courier like AQuickDelivery, the service is performed with cargo vans and box trucks also.  Now, Deutsche Post DHL Group has announced that it will begin testing same-day delivery via bus. Berlin and Hamburg will be the first cities the service will be tested in, and then, expand from there next year.  Depending upon the outcome of the tests will determine which cities will have same-day delivery next.  A number of demographic and infrastructure variables go into where to best implement the popular service, yet it will be especially critical with performing last-mile deliveries by bus.

How the Postbus service will operate will first involve the customer printing out their shipping documents, which they will be able to complete online. Then, they drop off their parcels to the Postbus Courier service pick up point at the main omnibus station in that Berlin or Hamburg. They give their parcels to the service staff member, who places the item in a bag, seals it and stows the bag securely in the Postbus.  Recipients can personally pick up items at the arrival destination the same day, or have third party collect the items after proving their legitimacy through identification or providing the right parcel TAN.

Same-day delivery with different companies have different charges attached to it. In the introductory phase of the Postbus service,customers will pay 20 Euros, which equates to $27.54 US dollars, and it must be paid in cash at the parcel drop-off location at the service point. This is much higher than in the US, where several retailers charge anywhere between $5 – $15.00 for the fast service.  The key about this service is that it is a long-distance one via bus, which could potentially justify the price if the same service was in the US.  To pay that amount in the US could be viable with something that is urgent, instead of paying much more to ship same-day air.

Deutsche is optimistic in regards to being able to offer customers a viable service option.  “Postbus Courier is a new same-day delivery option that gives our customers another choice, using our intercity bus network for shipping particularly urgent items”, said Achim Dünnwald, CEO of Mail Communication at Deutsche Post and designated head of DHL Parcel.  With the advancements of technology, shipping online is literally at a hand’s reach of your cell phone or tablet. Since customers have convenient ordering available, it makes sense to couple it with the convenience of same-day delivery.  It would be another step in a seamless direction for customers to be able to order a Postbus online, and have a same-day courier come and pick up the parcel from the origin customer as an added convenience.

Since buses already have several travel routes to big cities, it makes sense for Deutsche to give same-day delivery a shot.  AQuickDelivery doesn’t use bus, but it picks up everything from parcels to pallets and can perform same-day delivery fast.  Even for long distances, the Atlanta Courier can pick up and deliver items with Georgia or from state-to-state.  With this being the testing phase for Postbus, one of the main factors on its’ success will be demand and will it turn profit.

Reference: 12.7.15, www.postandparcel.com, Deutsche Post DHL Group trial same-day delivery via its bus network

Could Same-Day Delivery Fees Change Customer Demand?

Atlanta CourierAt this very moment, someone somewhere in the US is placing an order for same-day delivery.  From Amazon to Macy’s, there an enormous amount of retailers that are offering the popular service and customers love it.  They enjoy the fact that they can sit on their couch with their latest tech gadget and get a pair of shoes delivered to their front door within hours.

The time frame is excellent and the convenience is just as good, yet, it does come with a price.  The Denver Post discussed in an articles how customers enjoy same-day delivery, until they have to pay for it.  Most of the big name retailers offering the service charges anywhere between $5 and $20.  When this is factored in with the costs of the actual product, if the customer isn’t placing an order for a sufficient dollar amount, that fee may not look so good.  However, with shoppers it depends on their need eclipsing the same-day delivery cost.

“I remember using Kozmo.com a decade ago,” said C.J. Dugan, 37, a TV producer in Chicago said in the report. “One night we ordered a tub of ice cream and the movie ‘Pitch Black.’ They showed up in about 30 minutes. … It was before its time, I guess.”  Indeed, Kozmo.com was on to something, yet it didn’t have the major impact of online retail, tech-use and the internet to help push same-day delivery.  Now, there is nothing like being able to get your electronics or household items in your hands that fast, all from your phone.

With this being the holiday season, retailers need the volume to help build their profit margin for same-day delivery.  Fuel, drivers and other costs have to be covered within the retailer’s fees and customers know what they are willing to pay to have it now.  To eliminate the issue of same-day delivery fees, Amazon has put most retailers’ back against the wall with offering same-day delivery for free in several major US cities.  Deliv CEO Daphne Carmeli stated in the article, “Over the past 18 to 24 months, Amazon has been pushing the bar.  If you’re in retail, you have to step up to the new bar.”

Macy’s is one of the top competitors to Amazon with same-day delivery, offering the service for just $5 for orders over $99.  The leading department store retailer prepared for the holiday season, expanding its’ delivery reach into 17 US markets, which is higher than the amount of cities that Amazon has coverage in.  With Macy’s have roughly 885 locations across the US, There is no question that Macy’s has partenerd with Deliv to compete with Amazon and offer same-day delivery via stores possibly in every major US city nationwide.

With the costs of the service, shoppers are weighing whether to use it or not during the holiday season.  The beginning of next year will show if customers really bought into using it, or if they preferred to get out their to the malls to shop themselves.  A Same-Day Courier like AQuickDelivery is a viable option for any retailer to partner with and quickly implement a same-day solution.  The Buckhead Atlanta Courier can pick up and deliver fast, giving retailers the reliable last-mile service they’re looking for.

Reference: 11.29.15, www.denverpost.com, Mae Andersen, Everyone loves same-day delivery, until they have to pay