Monthly Archives: August 2016

UPS Revenue Up, But Amazon Could Be Coming

same day deliveryIt’s a good thing to see your revenue up, even it isn’t what you expected.  The Washington Post discussed how UPS’s second-quarter revenue slightly improved its’ domestic and international package divisions.  The package and delivery carrier’s revenue increased to $14.63 billion, up from $14.1 billion. Analysts surveyed by Zacks Investment Research expected $14.6 billion in revenue.  The US domestic package unit went up 4%,along  with average daily package volume up 2.5%.

The article also mentioned regarding the 2nd quarter figures that revenue rose 1.1% in the international package division and 3.9% for daily export packages.  For the three months ended June 30, UPS earned $1.27 billion, which is higher in comparison to $1.23 billion the same period last year.  With all of the increasing competition, this appears to be a good sign, especially as the holiday season draws near.

FedEx and the U.S. Postal Service isn’t the only companies that UPS has to be concerned about in regards to the package and delivery industry.  Amazon is making some strategies moves of its’ own.  The article mentioned how the e-retailer leader has leased 40 cargo planes from Boeing and Atlas Air for the purpose of creating an air cargo network.  Yet, Amazon stated it doesn’t plan to build its own delivery service and is only looking to work closer with package-delivery services like the USPS, FedEx and UPS.

Even if Amazon isn’t creating its’ own delivery service, it has clearly vested itself into Same-Day Delivery throughout the US.  Amazon offers free same-day delivery service for Prime members in major US cities, including San Francisco, San Diego, Seattle, Dallas, New York, Philadelphia, Chicago, Boston, Atlanta, Richmond, Orlando, and more.  The e-retail giant has the service in 27 markets, and more than likely, will become nationwide.  More cities could be added before the holiday season begins as well.

As Amazon may be converging on UPS’ turf, the carrier giant laying some ground work of its’ own with same-day delivery.  Earlier this year, UPS conducted a study on same-day delivery and led a $28 million funding round for start-up fast delivery company Deliv.  The article didn’t mention the investment size, yet it did state that UPS was taking a minority stake in Deliv and sit in on board meetings.  UPS took steps toward learning more about on-demand services, showing that there is some interest in being able to adapt to today’s market.  If Amazon and others are investing in same-day delivery, UPS sees reason to do it also.

UPS could see the need to step into other markets and offer additional shipping options.  As today’s delivery industry evolves, many companies are turning to a Same-Day Courier like AQuickDelivery to create same-day logistic solutions for them.  The Atlanta Courier has an array of courier expertise and the latest in technology for on-demand services, whether in Georgia or nationwide.  Either way, UPS and Amazon prove that businesses will have to keep up with delivery options, or get left behind.

Reference:  7.29.16, www.washingtonpost.com, Associated Press, UPS 2Q revenue improves on strength in US, abroad

Online Retail Searches Go Up, Will Affect Same-Day Delivery

Same Day DeliveryOnline retail searches are growing, thanks to tech gadgets.  Internet Retailer has reported that 56% of online retail searches are made on a smartphone or tablet, according to the study from web measurement firm Hitwise, a division of Connexity Incorporated.  The company looked at hundreds of thousands online search queries across 3.5 million smartphones and tablets between April 10-May 7 and made by consumers based in the U.S., the U.K. and Australia.  Smartphones and tablet are becoming invaluable to consumers because they can shop from anywhere they are.

Hitwise senior research and marketing analyst John Fetto talked about how online retail searches pays dividends for shoppers, even literally at checkout.  He stated “Especially for traditional brick-and-mortar establishments, the smartphone has become an indispensable shopping tool providing consumers—sometimes within feet of a register—with information or offers that could seal or jeopardize a transaction”.

Online searches is having an affect on the emergence of Same-Day Delivery, as shoppers not only look for deals, but also are now looking for ways to get their online items faster.  It is forecasted that same-day delivery will increase to $987 million by 2019 in the US, which results from online retail.  The service is allowing retailers and other companies to attract the segment of consumers that need a fast shipping option.

Amazon is one of the major e-retailers in the world and has implemented free same-day delivery in major US cities.  These cities range from San Francisco, Chicago, New York, Orlando, Dallas, Atlanta, Boston, and more.  The retailer has a current total of 27 city market areas that it provides same-day delivery, and more than likely, it inevitably will go nationwide.  Prime members can go to Amazon.com and conduct instant online searches for discount offers.  Once they receive a discount, they can then weigh the option of using the money they saved toward any same-day delivery fees.

Wal-Mart has also jumped into capturing more shoppers online via last-mile deliveries by launching a same-day grocery pilot program in Denver, as well as another unidentified market last month.  As many other business that engage in same-day delivery, Wal-Mart has partnered with Uber and Lyft ride-hailing services to perform the actual deliveries.  It also is offering its’ new ShippingPass membership program which is similar to Amazon’s Prime, but for half the cost.  ShippingPass is only $49, versus a $99 annual fee with Amazon.

Increased online searches ultimately show that retailers must set themselves to meet the demands customers have with e-commerce.  An optimal delivery system can lead to more sales and customer loyalty.  For businesses looking to add same-day delivery to their web services, they can turn to a Same-Day Courier like AQuickDelivery.  The Buckhead Atlanta Courier has the delivery expertise and latest courier technology that retailers can use to maximize their service options for online purchases.  In the end, the more people that search for online deals from their smartphone, the more opportunity to deliver what they buy.

Reference: 7.26.16, www.internetretailer.com, April Berthene, 56% of online retail searches take place on mobile devices

Sainbury competes wit Amazon in the UK, Launched Same-Day Delivery

same day deliveryThe US isn’t the only place where Amazon is compelling retailers and grocery chains to grow their online business. It is happening in the UK, where Amazon Fresh has now rolled out same-day grocery delivery in some parts in London.  Grocery store giant Sainbury has decided to not only have something to say, but has announced it is doing something about it.

The Daily Mail in the UK has recently released an article announcing that Sainbury is launching a same-day grocery delivery service in an effort to compete against Amazon there.  As all grocery retailers engaging in Same-Day Delivery, Sainbury will begin testing the service in three stores, then implement it in over 30 areas in the country by Christmas this year. The holiday season is the benchmark for many retailers for same-day services, yet it also is the season to capture more of the market share.  Consumers can potentially begin using your service during and after the holiday season ends, establishing customer loyalty with a new retailer online.

The article also mentioned that Sainsbury currently does offer next-day delivery on all orders placed before 11pm, as long as a delivery slot is available.  This is similar to the service offered by it’s’ rivals Tesco, Asda, Morrisons and Ocado.  The new grocery service for the retailers will allow shoppers to order online by noon, and then, receive their grocery items from 6pm the same day. Sainbury will also offer a pick-up option for customers, which will be ready to pick up from 4pm.  The variety of service options allows retailers to meet the multiple online demands for today’s evolving e-commerce.  Online retail has been revolutionized by the access of shopping being now at the fingertips of the consumer.

When it comes to launching same-day delivery, costs are vital and must be managed.  The delivery charge for the service has to be attractive, yet optimal. Sainbury will be charging up to £7 for same-day grocery delivery, however,  shoppers with a Sainsbury’s Delivery Pass, will pay no delivery fee for all orders over £40.  The pass costs between £30 and £60 a year, similar to Amazon’s Prime membership program.  The largest retailer in the world, Wal-Mart, has adopted the membership model as well, launching its’ new ShippingPass pilot program that consists of free shipping with two-day delivery for $49 annually.

Whether you are a grocery store chain or a product retailer, same-day delivery is proving to be a service that is wise to invest in. It is forecasted to reach $987 million by 2019 in the US, which shows the validity of how it will impact online growth in the coming years.  A Same-Day Courier like AQuickDelivery can partner with any type of retailer and quickly get same-day delivery established in their respective cities to compete with Amazon and others.  The Atlanta Courier has a reach beyond Georgia and can provide same-day solutions nationwide.  With a courier, US companies like Sainbury can develop their same-day delivery with a courier that has experience in optimizing costs and on-time services also.

The Daily Mail in the UK has recently released an article announcing that Sainbury is launching a same-day grocery delivery service in an effort to compete against Amazon there.  As all grocery retailers engaging in Same-Day Delivery, Sainbury will begin testing the service in three stores, then implement it in over 30 areas in the country by Christmas this year. The holiday season is the benchmark for many retailers for same-day services, yet it also is the season to capture more of the market share.  Consumers can potentially begin using your service during and after the holiday season ends, establishing customer loyalty with a new retailer online.

The article also mentioned that Sainsbury currently does offer next-day delivery on all orders placed before 11pm, as long as a delivery slot is available.  This is similar to the service offered by it’s’ rivals Tesco, Asda, Morrisons and Ocado.  The new grocery service for the retailers will allow shoppers to order online by noon, and then, receive their grocery items from 6pm the same day. Sainbury will also offer a pick-up option for customers, which will be ready to pick up from 4pm.  The variety of service options allows retailers to meet the multiple online demands for today’s evolving e-commerce.  Online retail has been revolutionized by the access of shopping being now at the fingertips of the consumer.

When it comes to launching same-day delivery, costs are vital and must be managed.  The delivery charge for the service has to be attractive, yet optimal. Sainbury will be charging up to £7 for same-day grocery delivery, however,  shoppers with a Sainsbury’s Delivery Pass, will pay no delivery fee for all orders over £40.  The pass costs between £30 and £60 a year, similar to Amazon’s Primer membership program.  The largest retailer in the world, Wal-Mart, has adopted the membership model as well, launching its’ new ShippingPass pilot program that consists of free shipping with two-day delivery for $49 annually.

Whether you are a grocery store chain or a product retailer, same-day delivery is proving to be a service that is wise to invest in. It is forecasted to reach $987 million by 2019 in the US, which shows the validity of how it will impact online growth in the coming years.  A Same-Day Courier like AQuickDelivery can partner with any type of retailer and quickly get same-day delivery established in their respective cities to compete with Amazon and others.  The Atlanta Courier has a reach beyond Georgia and can provide same-day solutions nationwide.  With a courier, US companies like Sainbury can develop their same-day delivery with a courier that has experience in optimizing costs and on-time services also.

Reference: 7.21.16, www.dailymail.co.uk, Sean Poultner, Sainsbury’s takes on Amazon with same-day delivery pledge