Monthly Archives: July 2016

Amazon Wins Big on Prime Day

Same Day DeliveryAccording to Forrester Research, there is an estimated 244 million online shoppers in the US.  This equates to a vast number of opportunity for retailers and various companies to capture sales via e-commerce.  E-retailer Amazon has established a niche online and has strategically implemented order fulfillment operations that enables it to consistently deliver online items.  Now, customers flock to Amazon as their first choice for online purchasing.  It made since to have Prime Day and it proved to be a success.

On Prime Day, it was reported that 46 million Americans made a purchase from Amazon.  This is not a number that the e-retailer will be satisfied with, but it is excellent in terms of it  being the first time Amazon performed the campaign.  It is likely that Prime Day will be back again and the loyal customer base that Amazon has, continues to progress in size.  No retailer could have thought that Amazon was going to create a gap of online dominance as it has, as more and more retailers are aggressively pursuing to catch up.

Even Wal-Mart has began to introduce more initiatives to gain market share online.  Just as Amazon has its’ Prime membership, the world’s largest retailer has rolled out a membership program of its’ own.  Wal-Mart Stores Inc. has launched its’ new ShippingPass pilot program, which offers free shipping with two-day delivery.  The program works similar to Amazon’s, with the exception of a lower price for shoppers at $49, compared to Amazon’s $99.  Wal-Mart will have online items such as clothing, electronics, health products, and more via Walmart.com.  Participating online products will have a ShippingPass logo next to them.  Wal-Mart has also begun to engage in Same-Day Delivery as well, which Amazon offers too.

The article mentioned how many surveyed consumers visited and shopped on Amazon.com more that WalMart.com.  Internet Retailer conducted a survey of 191 shoppers in the US, or those that purchased something online in the past year, via online survey company SurveyMonkey.  Roughly 19.4% of the respondents bought something from Amazon on Prime Day.  This estimated Amazon’s average order value at $50, which meant that roughly $2.32 billion was transacted this past Tuesday on Amazon.com.  In contrast, only less than 10% of consumers surveyed stated they visited Walmart.com Tuesday.

Amazon is leading the way online and Wal-Mart, Target, BestBuy, and others have all launched initiatives to gain ground on the web.  Many have partnered with a Same-Day Courier like AQuickDelivery to offer the convenient delivery options that online shoppers enjoy.  The Atlanta Courier has the delivery expertise and courier technology to meet the evolving demand of e-commerce.

Reference: 7.13.16, www.internetretailer, Stefany Zaroban, 46 million Americans bought something on Amazon during Prime Day

UPS Expands Pick Up Locker Locations Nationwide

Same Day DeliveryRetailers aren’t the only companies shifting their delivery systems.  As they innovate to meet online demand, shipping carriers within their supply chains are being affected and seek to do the same.  UPS is finding that their shipping options have to exceed mere traditional pick up and delivery.  The more convenience and speed at which shoppers can order online, the more UPS has to adapt to today’s e-commerce.

Recently, UPS has made an aggressive move with the official launch of its’ new Access Point Lockers.  The carrier leader has decided to add 300 self-service package pickup lockers nationwide.  Prior to the roll out, UPS performed a pilot program with nine Chicago stores in 2014.  The lockers provides customers with the convenience and speed for package retrieval, as well as resolving missed delivery issues, which has plagued the carrier’s reputation, especially during the holiday season.

“For online retailers, providing additional convenient delivery locations is one of the secrets to more shopping cart conversions, greater loyalty and happier customers,” said director of the UPS Access Point locker program Kalin Robinson.  She went on to say, “UPS Access Point lockers can be easily accessed when it fits the shopper’s schedule, giving an online retailer added value to present at checkout.  The lockers enable more shoppers to enjoy the ease and simplicity of buying online.”

“The increase in online shopping parallels the interest in alternate delivery locations,” Robinson added. “UPS Access Point lockers are one of the many ways that UPS is helping our customers offer consumers a great online shopping experience.”  Loyal online customers is what UPS is after.  This is ultimately what Amazon has built with its Prime membership program, coupled with consistent and reliable two-day shipping deliveries.  Now, Amazon has implemented free Same-Day Delivery within 27 major US city markets nationwide.

UPS was slightly involved in same-day delivery until this past February.  A strategic investment was made into Deliv to study a same-day delivery model and how the market segment evolves.  The venture arm of UPS, led a $28 million funding round for the start-up company at the time.  UPS has taken a minority stake in Deliv and also sits in on board meetings.  It appears the shipping leader is pursuing in-depth analysis to essentially find how same-day delivery can beneficial, in spite of it not being the company’s core competency.

The locker system may work for some market segments, yet there will still be customers that will pick up at physical locations also, which is why UPS is engaging in same-day delivery.  Various companies and retailers are venturing out to partner with a Same-Day Courier like AQuickDelivery to fulfill online orders fast.  Right from their brick-and-mortar locations, the Atlanta Courier can pick up and deliver to customers throughout Georgia, as well as throughout the US.  As online business grows, lockers and close proximity pick ups can be performed by the customer or courier will become used more.

Reference: 7.7.16, www.smallbiztrends.com, Antony Maina, UPS Lockers Serve eCommerce Customers without Delivery Address