Monthly Archives: February 2016

Online Retail To Reach $523 Billion, Delivery Services Will Grow Also

online shoppingIt takes a lot of of trust in the fact that same-day delivery is going to become a staple.  Companies like Amazon, Google, Macy’s, and more have all jumped head first into the service, and it appears they know what other retailers don’t.  Big investments have been made in the US and abroad into establishing delivery systems in order to address the need to meet online demand.  Mobile devices is leading the way in generating online retail.

Well-known research company Forrester reported how the use of mobile devices to shop online will increase by 26 million.  In 2015, mobile devices influenced $1 trillion in US sales and online retail is expected to reach $523 billion within the next five years.  This means there will be a 56% hike from $335 million last year.  More and more consumers have become comfortable with not only incorporating technology within their daily living, but also the security of it.  Technology has become very vast and versatile in what it can provide shoppers, and they have an under-girded peace of mind with using mobile devices to purchase with.

Within Internet Retailer’s article, Forrester also released a new report discussing the US cross-channel retail forecast up to 2020.  It’s predicted that online sales will on average grow annually by 9.32% over the next five years.  This is an astounding figure for all retailers, whether e-retail or brick-and-mortar, to heavily consider when innovating and branding their web presence.  Retailers have to plan for now and the future of business–at the same time.  Many retailers have even partnered with a Same-Day Courier like AQuickDelivery to meet the convenience level of online shopping that customers are looking for.  The Atlanta Courier has helped businesses expand locally and nationwide to capture more revenue within their respective markets by simply being able to get online products delivered fast.

The delivery aspect of online retail is just as crucial as the buying and web presence itself.  This is key with customers being able to conveniently purchase from their mobile devices.  This is making a difference in online browsing.  In fact, Forrester projects an additional 26 million shoppers will be both browsing and buying from retail sites on their smartphones by the end of this decade.  Yet, the research company did not specify how many people are currently browsing and buying from retail sites on their mobile devices.  Faster wireless networks make it easier for consumers to use the internet to shop on from their mobile devices.

Online retail is accelerating at a fast pace, as shoppers figure out more and more what they can do with their mobile devices.  One aspect of mobile devices that is helping to increase using them to shop with are the sizes of the screens.  Forrester principal analyst Sucharita Mulpuru talked about how with bigger phones results in greater use. “Screen sizes for mobile phones have gradually increased in size and wireless networks are better than before, which has made web browsing easier than ever,” he said.  “Additionally, consumers are more accustomed to using their phones everywhere and shopping is a byproduct of that ubiquity.”

As online retail expands its’ reach, so will the delivery channels to get products door-to-door.  AQuickDelivery can assist any company to be a front runner online right now and in the years to come.

Reference: 1.29.16, www.internetretailer.com, Matt Lindner, Online sales will reach $523 billion by 2020 in the U.S.

Look Out Alibaba, Amazon Going Global Delivery Network

amazon ordersAs far as Amazon goes, we wonder what else could the company do to create even more distance between itself and the competition.  With the latest news regarding Amazon, it is clear that the retail giant is showing no signs of slowing down–globally.

Amazon is now setting its’ sights on more strategic moves to expand globally, specifically with a larger presence to compete against Chinese online retail leader Alibaba.  Per Alibaba’s research company’s AliResearch, the market in China is expected to spike upward to $1 trillion within e-commerce, meeting the demand of 900 million shoppers there.  It makes sense for one of the countries to be China for Amazon to launch a logistics network in.  Internet Retailer discussed in the article how within Amazon’s 2013 report regarding fulfillment, the retailer is planning to build a vast global delivery network that will control the flow of goods from factories in China and India, to customer doorsteps in Atlanta, New York and London.

It’s no coincidence that the article mentions Amazon’s network will involve shipping into London.  Last month, the retail leader moved forward with greater acquisitions and making large asset investments in the UK, acquiring more of French delivery company Colis Prive.  Amazon already owns 25% of the company and there probably will be more to come.  Also in 2014, Amazon gained the right to purchase 4.2% of UK delivery company Yodel.  Online retail is growing in Great Britian as well.  All of the pieces are fitting together for Amazon to establish itself more in London.

One of the key mentions relative to what the e-retailer is building is how it will ultimately make FedEx and UPS to become rivals with Amazon.  In the report, Amazon’s global supply chain will put it at the center of a logistics industry that involves not just shippers like FedEx and UPS, but also other middlemen who handle cargo and paperwork associated with transnational trade.  With the new supply chain, Amazon will bypass these brokers, amassing inventory from thousands of merchants around the world and then buying space on trucks, planes, and ships at reduced rates.

It went on to say that merchants will be able to book cargo space online or via mobile devices, creating what Amazon described as a “one click-ship for seamless international trade and shipping.”  When its’ all said and done, the 2013 report stated, “Sellers will no longer book with DHL, UPS or Fedex but will book directly with Amazon.  The ease and transparency of this disinter-mediation will be revolutionary and sellers will flock to FBA given the competitive pricing.”

Amazon is taking online retail and global logistics to another level, which is what other retailers have been faced with in the US.  The company has several order fulfillment centers nationwide, not to mention with implementing Same-Day Delivery to get shoppers their online items fast also.  Amazon launched free same-day delivery last year in 14 metropolitan cities the US, beginning with California cities.  It also has same-day delivery in the San Francisco Bay Area, Seattle-Tacoma, Dallas-Fort Worth, Indianapolis, New York, Philadelphia, Baltimore, Boston, Phoenix, San Diego, Washington DC, Tampa Bay, and Atlanta.  Other retailers are partnering with a Same-Day Courier like AQuickDelivery in order to keep up with Amazon and expand quickly into new markets.  The Atlanta Courier has the tools to create powerful delivery logistics for retailers within Georgia and nationwide.

Reference: 2.9.16, www.internetretailer.com, Bloomberg News, Amazon eyes Alibaba as it builds a global delivery network

Same-Day Delivery Lands Big Numbers In Britain

Atlanta CourierIt’s good for retailers when they venture out into the market of same-day delivery and it’s a success.  Many retailers already had the service implemented and merely expanding into more cities before the holidays.  Others jumped into offering the service for the first time during the last holiday season.  Either way, recent data shows that last Christmas was good to everyone, especially for retailers in Britain.

Retail Times reported how Christmas 2015 was a big year for same-day delivery there, with 84% of shoppers that used the last mile service were satisfied.  This survey was based on questioning performed between December 21st. – 23rd. on 11% of shoppers that used same-day delivery for Christmas since the beginning of the month.  Also, 16% of shoppers between the ages of 18 and 24 were more likely to use same-day delivery, in comparison to just 8-10% of other age groups.  The younger crowd is no surprise to use the service more, being there is a higher use of tech gadgets and gives them more on-demand access to what they buy.  Most customers engage in competitive research, looking for online discounts, sales, and more, which can then be conveniently purchased from their mobile device.

There were a number of key stats in the report.  One of them was that the total population 32% would be likely to use a same day delivery service from any retailer in the future.  Another one was that 26% of people who have not used the service would be likely to use it in the future.  The most compelling statistic from ICM was that 33% of the total population would be more likely to shop with a retailer if they offered a same day delivery service. This increased to almost 74% of those who used a same day delivery service in December.

In the article, Associate Director at ICM Unlimited, Kate Bewick, commented extensively on their favorable findings for retailers.  She stated, “Retailers will be delighted to see what we consider to be one of the most interesting findings of this research – that many of the people who used same delivery over Christmas 2015 are now more likely to select it in the future. In fact, one third (33%) of all shoppers are more likely to choose a retailer who offers this service, and that figure increases to 34% of 35-54 year olds and 44% of 18-34 year olds. Perhaps most illuminating is that 83% of the people who used same day delivery in December are likely to use it again in future.  These figures give retailers a clear indication of the advantage delivery can offer in the very competitive market they operate in – particularly in the light of some of the disappointing Christmas trading figures that have already been have released.”

E-commerce grew by 20% between Black Friday and Christmas Eve last year in the US as well.  This led to great numbers for same-day delivery during the holiday season.  Same-day delivery grew in the US is growing in all over the world and is forecasted to reach $987 billion by 2019.  Online retail is being predicted to hit $500 billion by 2018 also.  There are big name retailers that are driving the growth of the on-demand service, such as Amazon, Google, Macy’s, BestBuy, and more.  In addition, there are retailer like Wal-Mart that are heavily involved in online store pick-up.  This service allows customers to place their orders online and pick them up from store locations.

There is even opportunity to involve same-day delivery with in-store pick ups as well.  A Same-Day Courier like AQuickdelivery can be utilized by shoppers to pick up their item and deliver it to their final destination in no time.  The Atlanta Courier has a wide range of same-day delivery service in the US and is sure to be a top contender with expanding its’ future growth.

Reference: 1.18.16, www.retailtimes.com.co.uk, Fiona Briggs, Christmas 2015 was the season of same day delivery, ICM Unlimited reports