Monthly Archives: December 2016

China E-Commerce Slows Mall Traffic, Malls Need Same-Day Delivery

With the growth of e-commerce, it is only a matter of time that it will be a normal way of doing business.  The US isn’t the only country where online growth is thriving, but in China as well.  China’s e-commerce is increasing at a fast pace, and is now even affecting its’ mall traffic.

Internet Retailer discussed in an article how the foot traffic in malls and restaurants went down in November.  This was due to a surge of online shopping activity, according to Baidu, operator of China’s dominant search engine, and JD.com.  China’s wealthy consumers are shopping online for more pricier items, primarily via e-retail leader Alibaba, which even had $18 billion in sales in one day the same month mall sales declined.  Alibaba offers Same-Day Delivery in various areas as well.

“China’s two-speed scenario is having a major impact on the country’s retail industry,” Jason Yu, general manager for China at consumer research firm Kantar Worldpanel, said in a report. “This massive explosion of online sales growth is being fueled by increasing diversification in the categories purchased online, as well as huge gains in imported products and consumers taking advantage of promotions.”

Malls are being affected by e-commerce, as more and more shoppers rely on the mobile devices to conduct all of their shopping.  Also, with the delivery option of same-day delivery, it has even given shoppers a level of convenience that has been created via technology advancements that had not been present before.  Mall stores are having to shift their focus from in-store to online sales.  Online retail is expected to reach $500 billion by 2018, therefore, it is imminent for malls to develop various omnichannels to generate growth.

This is what Macy’s has done in the US.  The mall giant launched same-day delivery in multiple major US cities last year, offering another option for online shoppers.  Partnering with start-up delivery company Deliv, Macy’s implemented same-day delivery in San Francisco, Los Angeles, San Jose, Seattle, Houston, Chicago, New Jersey, and Washington DC.  Its’ sister company Bloomingdale’s also launched the service in San Francisco, Los Angeles, San Jose, and Chicago. With at least 885 physical store locations, Macy’s uses them as close proximity warehousing to fulfill online orders, thereby moving store product.

Matthew Hassan, a Sydney-based senior economist at Westpac Banking Corp., also wrote in a statement regarding overall sales for , “The gradual improvement in the consumer mood over the last two years, from extreme lows in late 2014, seems to again be losing its way.  With confidence still materially below long-run averages and consumers still concerned about job security and the economic outlook the consumer recovery is clearly still fragile.”

In the US, stores like Macy’s, BestBuy, PetSmart, and more have all bridged their e-commerce to store sales with same-day delivery.  Mall stores that are seeking to create store growth can do the same by partnering with a Same-Day Courier like AQuickDelivery to fulfill online orders.  The Atlanta Courier can develop a same-day solution that picks up product from malls and then delivers them to the doorstep of the shopper.

Reference:  12.12.16, www.internetretailer.com, Bloomberg News, China’s e-commerce boom shrinks mall shopping traffic

FedEx, UPS and USPS Set Holiday Delivery Deadlines

As the holiday season continues, retailers providing Same-Day Delivery aren’t the only ones gearing up for the best month of all.  Christmas is almost here and big name carriers are strategically setting their shipping deadlines to ensure optimal on-time deliveries.

Yahoo recently discussed how FedEx, UPS and others have all released their shipping deadlines in order for shoppers to get their packages on or before Christmas Day.  The big day is creating a time-sensitivity for gifts that goes unmatched throughout the year.  If there is any holiday on a global scale that consumers deem critical for their packages to on time, it is Christmas, Hanukkah and Kwanzaa.

All of these carriers each have their expected package volume and have planned accordingly.  FedEx forecasts that it will ship 25 million packages on peak days during the holiday season.  UPS,FedEx’s core competitor, predicted that it would be delivering over 700 million packages between Black Friday and New Year’s Eve, which is a 14% increase from 2015.  The carrier giant has also guaranteed its’ deliveries by Christmas Eve per its’ Christmas schedule.  Lastly, the US Postal Service, slowly moving beyond its’ financial challenges in recent years,  expects to deliver 750 million packages this holiday season, equating to a 12% jump from last year.  The USPS is also has guaranteed delivery by Christmas, but only for domestic services.

FedEx, UPS and the USPS released their shipping deadline dates, and they are as follows:
FedEx
  • Dec. 16 — Last day to ship FedEx Ground and FedEx Home Delivery
  • Dec. 19 — Last day to ship FedEx Express Saver
  • Dec. 21 — Last day to ship FedEx 2Day A.M and FedEx 2Day
  • Dec. 22 — Last day to ship FedEx Standard Overnight, FedEx Priority Overnight, and FedEx First Overnight.
  • Dec. 23 — FedEx Same-Day City
  • Dec. 25 — FedEx Same-Day and FedEx Same-Day City

Also, FedEx First Overnight, FedEx Priority Overnight, and FedEx 2Day will make deliveries on December 24th.  A $16 Saturday delivery fee will apply per package.

UPS
  • Dec. 19 — Last day to ship via UPS 3 Day Select to be delivered before Christmas Day (delivery on Friday, Dec. 23).
  • Dec. 21 — This is the last day to ship all UPS 2nd Day Air packages to be delivered before Christmas Day (delivery on Friday, Dec. 23).
  • Dec. 22 — Last day to ship all UPS Next Day Air packages to be delivered on Friday, Dec. 23 — This is the last day to ship all UPS 2nd Day Air packages to be delivered before Christmas Day, which must use the Saturday delivery option for delivery on Saturday, Dec. 24
USPS
  • Dec. 15 – Last day for USPS Retail Ground. Ground service for less-than-urgent deliveries and oversized packages.
  • Dec. 20 – First-Class Mail. Service for standard-sized, single-piece envelopes and small packages weighing up to 13 ounces with delivery in 3 business days or less.
  • Dec. 21 – Priority Mail. Domestic service in 1, 2 or 3 business days based on where the package is mailed and where it’s being sent, variety of flat-rate options.
  • Dec. 23 – Priority Mail Express. Fastest domestic service, guaranteed overnight scheduled delivery to most locations.  Some restrictions and exceptions apply.

Retailers like BestBuy, Kmart and Amazon all have their respective deadlines for delivery also.  One of the shipping options that will still be in demand as Christmas approaches will be same-day delivery.  Large carriers aren’t involved in last-mile delivery as a core competency, therefore retailers may look to a Same-Day Courier like AQuickDelivery to get it done.  The Atlanta Courier has the courier expertise and driver fleet to deliver packages throughout Georgia and even nationwide.

Reference: 12.5.16, Yahoo Finance, Brittany Jones-Cooper, Holiday shipping deadlines for UPS, FedEx and major retailers

PetSmart Competes with Amazon, Goes Same-Day Delivery

It isn’t often that there is such a variety of companies entering into the market of Same-Day Delivery to grow online.  The service is anticipated to reach $987

million by 2019 as well, which results in many retailers beginning to implement it aggressively to drive online and physical store sales.  Among recent retailers to offer same-day delivery is PetSmart, announcing that it is launching its’ service this month.

Flagship.com discussed how PetSmart released Monday that it will offer same-day and scheduled deliveries in several major US cities in order to compete with Amazon, which has thousands of products it sells online, and just as other retailers have done, PetSmart has no choice but to engage in same-day services.  The cities will include Dallas, Houston, Philadelphia, Boston, New York City, Yonkers, Northern New Jersey and Washington DC, most of which are the same cities that Amazon provides Prime Now also.

In fact, Amazon has a total of 27 major city markets that it offers Prime Now, such as San Francisco Bay Area, San Diego, Seattle-Tacoma, Dallas-Fort Worth, Boston, New York, Chicago,Indianapolis, Tampa Bay, Baltimore, Washington DC,  Orlando, Nashville, Raleigh, Richmond, Tucson, and Atlanta.  Amazon also has free same-day delivery in Toronto and Vancouver in Canada.  The heavy investments that Amazon has made into same-day delivery attests to how legitimate it is and what the retail industry is evolving into.

It is clear then why PetSmart is diving into it.  Eran Cohen, chief customer experience officer at PetSmart, said in the article, “As the trusted partner to pet parents and pets in every moment of their lives, we are continually looking for ways to make the shopping experience easier and more convenient for our customers.  Our omnichannel strategy is aimed at giving pet parents options tailored to their needs and desires”.

PetSmart will also launch a subscription option for shoppers, which has seen much success with Amazon.  Many other retailers have started to offer subscription programs as well in order to create a customer loyalty in an e-commerce environment that has become more competitive.  For example, Wal-Mart is currently testing its’ new service ShippingPass for a $49 per year subscription, which is almost half of the cost of Amazon Prime, for an aggressive market entry and to attract more customers to its’ site.  Google also offers shoppers a $95 annual subscription fee for its’ same-day delivery program Google Express.

It may be pet products, yet the results are still the same in today’s e-commerce utilizing same-day delivery.  PetSmart partnering with Deliv shows that a retailer or business can partner with a Same-Day Courier like AQuickDelivery and offer last-mile delivery services right away.  The Atlanta Courier has the courier expertise and technology to develop a same-day logistics solution that fits your company.  Whether in Georgia, or even nationwide, AQuickDelivery can pick up and deliver from a variety of store locations to fulfill online orders to shift into meeting the demand by shoppers for more convenience.

Reference:  11.12.16, www.flagship.com, PetSmart Launches Same-Day Delivery

Volkswagen Talks Same-Day Delivery, But Not Ready Yet

Courier ServiceIt’s a great thing when you find that a small niche of a service like Same-Day Delivery is having such a large impact in the retail industry.  The shift in e-retail, namely by front-runner Amazon, has made same-day delivery vital to compete for retailers all over the world.  Yet, it hasn’t stopped there in with retail, automakers have also seen the benefit of it with having parts at dealerships at the right time to increase their operational efficiency.

Several big name car manufacturers have implemented same-day delivery and have seen how much it helps them service their customers.  One example is Toyota, which this past August rolled out same-day parts availability to their dealerships to meet real time demand for repairs.  The faster a dealership can get  their parts, the faster the service repairs are completed.  Repair times is a huge concern for customers, usually being a top complaint for local dealerships.  This has been one way same-day part delivery is helping Toyota improve its’ overall customer reviews.

Toyota may be excited about same-day parts.  However, other automakers are not so impressed to the point of implementing it themselves.  Volkswagen is one of them, not being fully convinced that the benefits of the service ultimately outweigh the costs of it.  Anu Goel, Vice President of Parts and Logistics at Volkswagen Group of America, talked about same-day delivery in an article by Automotive News.  Goel simply stated, “If you’ve got dealers stocking the right parts in the first place, why do you need same-day service?”

His philosophy is to aim to ship parts faster and to get dealers to change what they are stocking.  The part inventory itself will enable the dealerships to already have what they need to be operationally efficient.  With same-day delivery, close-proximity warehousing is key and in order for Volkswagen to offer same-day part delivery, the automaker would have to add more distribution centers to its’ current seven, which could prove to be a costly task in itself.  It does offer next-day delivery, and according to Goel, that is enough for now. He said in the article, “We are good for now,” he says. With a 1 p.m. cutoff [for parts orders], we can make 7 a.m. to 8 a.m. delivery the next day. Seven buildings around the country allow us to meet that commitment.”

Car manufacturers like BMW and Fait Chrysler US are also on board with same-day part deliveries, which shows that it may not be workable for some of them, but for others it is.  It is all contingent upon the automaker.  A Same-Day Courier like AQuickDelivery can partner with a variety of companies to perform the actual deliveries from one dealership location to another throughout Georgia.  The Atlanta Courier already performs part pick up and delivery for car manufacturers, proving that there is a place for same-day parts.  The fact that Toyota is heavily investing in same-day parts may prove to be the car manufacturer that spearheads a major surge in the growth of the service in the years to come.

Reference: 11.21.16, www.autonews.com, Jim Henry, VW’s Goel: Same-day delivery? Not yet