Monthly Archives: February 2017

Retailers Fighting to Compete Via Same-Day Delivery

It’s not likely that when Same-Day Delivery reaches multiple retailers, that the service is going to have in level of minute growth.  Amazon has essentially pioneered the service and several big name e-retailers are taking strides with their respective online e-commerce, looking to implement same-day delivery and compete with Amazon.  A new study from research company L2 shows there is every reason for retailers, if they want to keep up with Amazon, to enter the fast delivery market.

Multichannel Merchants recently reported via L2 that less than 20% of the 97 retailers across eight sectors offer same-day delivery, yet 40% of shoppers have said they would take advantage of it if it was an option.  Also, 25% of shoppers said they would abandon their cart if same-day delivery was not available.

The research company stated, “Well capitalized startups such as Uber, Postmates and Deliv are filling the void, allowing retailers to offer (same-day delivery) without investing in the infrastructure. Yet less than a fifth of retailers (tracked by L2) utilized third-party delivery partners. With no dominant player in the same-day delivery space, there is still healthy competition that allows both retailers and consumers to find lower costs than traditional shipping partners.”

It makes sense for retailers to jump into same-day delivery to keep up Amazon.  L2 mentioned Macy’s as one retail giant that has one of the best infrastructures to be successful with it.  Macy’s has over 880 locations, which means online orders can be easily fulfilled via department stores that are in close proximity to the end customer.  In 2014, Macy’s partnered with Deliv to roll out same-day delivery in eight major US markets, including San Francisco, Los Angeles, Seattle, Houston, Washington DC, Chicago, New Jersey, and more.  Now the retailer is performing last-mile deliveries in 17 markets.  With over 880 stores nationwide, Macy’s is ideal to thrive with same-day delivery.

L2 went on the say regarding Macy’s, “Furthermore, the Deliv partnership enables affordable same-day delivery for Macy’s customers.  The retailer maintains its $99 free shipping threshold and charges only $5 for same-day delivery where available.”  Pricing is huge when it comes to same-day delivery, being the deciding factor on whether it will be a sustainable service.  The low $5 charge doesn’t seem like a lot, and it’s not supposed to for the shopper.  It is the volume of same-day delivery that ultimately makes the difference for the retailer.

L2’s study shows that same-day delivery is key for retailers in today’s e-commerce, especially with how Amazon is driving more shopping to be done online, instead of at physical stores.  To implement last-mile deliveries, a retailer can partner with a Same-Day Courier like AQuickDelivery to get their program off the ground.  The Atlanta Courier services the Atlanta and Metro-Atlanta area, in addition to the ability to roll out same-day solutions nationwide.

Reference: 2.8.17, www.multichannelmerchant.com, Mike O’Brien, Same Day Delivery An Opportunity Area for Retailers vs. Amazon

Same-Day Grocery Delivery Growing in London

It use to be the exception when it comes to Same-Day Delivery, but now ordering groceries online is beginning to become a bigger interest by retailers all over the world.  London is one city that has some grocery retailers that have decided to take the leap with same-day grocery services with hopes that it will pay off.

Morrisons, Tesco and Sainsbury have implemented same-day grocery delivery pilot programs to test and see if it will ultimately work.  BBC News discussed with Sainsbury its’ perspective and strategy for getting the service off the ground.  The grocery chain giant is optimistic about the delivering groceries the same day. One reason is because the “appetite” of customers for same-day grocery delivery has been high, right along with next-day delivery, which is what Sainsbury already had successfully in place.

Sainsbury is testing grocery delivery in 30 of its’ stores in London.  Its’ strategy is to see the results of the pilot program and make any necessary adjustments moving forward with it.  Currently, Sainsbury customers can order their groceries online by midday and have it delivered by that evening.  While in the US, same-day delivery fees are roughly $5, Sainsbury delivery charge ranges up to 9 pounds, equating to about $11 US dollars.  Yet, shoppers with a subscription membership or that make online orders over 100 pounds, would be free.

Sainsbury is just one of the four biggest grocery store retailers in the London and England areas.  All of them have taken their respective approaches and strategies that fits their company models.  Morrisons has partnered with Amazon Fresh for its’ grocery delivery.  Tesco is testing the service in London and in the South-East.  Asda is the exception, which has not jumped into same-day grocery delivery.

BBC highlighted a Sainsbury store and discussed with one of its’ employees some of the processes involved when fulfilling an online grocery order.  The picking of fresh fruit and vegetables for online orders have to be done properly and accurately.  They can’t just pick anything and deliver it.  If the items picked for delivery on the behalf of the online shopper is rotten and in bad condition, it could result in re-delivery.  This type of error can eat up an already low profit margin.

Grocery delivery creates the level of convenience that is high in demand for shoppers, and its’ only fitting for retailers to respond to it.  A Same-Day Courier like AQuickDelivery is a sound option for grocery stores in the Atlanta area to implement the service and capture online sales.  The Atlanta Courier can take its’ delivery expertise and fulfill online orders fast.

Reference: 1.25.17, BBC News, Why same-day online food shopping is the next big thing