Monthly Archives: September 2015

Trustev and Coldwell Banker Surveys Say Millennials Want Same-Day Delivery

Courier ServiceIt’s not a coincidence that big name retailers are beefing up their web presence and online retail.  From Google to Macy’s, millions are being invested into creating the omni-channels via same-day delivery necessary to make shopping online seamless for customers.  The reason why is that online retail is forecasted to hit $500 billion by 2018 and certain customer age groups will have a lot to do with that the growth, particularly the millennials.

New survey findings show that the millennials have a say in driving same-day delivery to becoming a staple service among retailers.  Multichannel Merchant reported that fraud prevention firm Trustev and Coldwell Banker Commercial Affiliates performed two surveys that showed that millennials want a fast shipping option.  Trustev’s survey found that over 56% of consumers between the ages of 18-34 expect for retailers to offer a same-day shipping option.  The age group is immersed in the use of technology and mobile devices in which they can do online shopping at the touch of a button.

With fast access, comes a greater demand to get the items just as fast.  As a result, Amazon, Wal-Mart, Macy’s, Toys-R-Us, Wal-Green’s, and more have all positioned themselves to supply a variety of same-day delivery service programs.  Coldwell Banker performed a similar survey that found 64% of the millennial demographic were more likely to make buy online if same-day delivery was offered.

Rurik Bradbury, CMO of Trustev, commented in the article, “They’re mostly digital natives, and the younger half grew up knowing nothing but online apps.  So we can see how their worldview has shaped those expectations. At this point we’ve had e-commerce for more than 20 years, but now there are a bunch of same-day delivery providers like Deliv and Postmates, built with this group’s real-time demands in mind.”

When discussing fraud for the quick turnaround times regarding same-day delivery, Bradbury stated, “A lot of famous brands, including a large higher-end clothing retailer, have told us they dread the push from executive management to do same day because it’s not possible with their current process.  The average retailer reviews 10% of its transactions, so to turn these orders around (while mitigating fraud) and not missing the one-day cutoff isn’t possible with current systems.”

What was interesting in the Trustev survey is that out of the top 50 retailers the firm researched, only Amazon and 1-800 Flowers offered same-day delivery as a standard shipping option at checkout.  Trustev only researched same-day delivery in Manhattan’s 10001 zip code, the same one of Trustev’s US office.  The fact of this low amount of retailers on board affirmed that the fast service, although gaining ground, is still not wide spread yet. However, when web-based retailers like Google and department store retailers like Macy’s expand frequently in major US cities, same-day delivery is going to become as popular and normal as next-day delivery.

With a same-day courier like 1-800 Courier, retailers can quickly implement same-day delivery nationwide and capture the growing market of the millennials desiring fast shipping. The San Francisco Courier has the expertise to handle the delivery side of online business as demand grows.

Reference: 9.24.15, www.multichannelmerchant.com, Mike O’Brien, Half of Millennials Want Same-Day Delivery, but Most Retailers Don’t Offer It

Etsy Announces Pilot Same-Day Delivery Program in New York City

Courier ServiceThere are some very big retailers that are seeing the benefit of literally meeting shoppers where they are with same-day delivery.  With just a quick product search, find of a great online deal and checkout, an online shopper can have their items from Macy’s, Google and Amazon in no time at all.  In a matter of hours, you can have your household goods, tech gadget or even food, at your door.

Yet, other companies are seeing these well-known retailers thrive, and they want a slice of the pie too.  Etsy has decided to be one of those retailers and now the company has entered the same-day delivery race.  Re/code recently reported that Etsy has announced it’s new pilot program to test same-day and next-day delivery in parts of New York City, specifically Brooklyn and Queens.  Etsy ASAP will launch sometime this fall, and shoppers in these areas will begin to find the delivery option on Etsy’s product search and checkout pages.

The retailer will be partnering with delivery startup Postmates, a service product via the US Postal Service, which is venturing into new innovations utilizing its’ robust delivery fleet.  Postmates couriers will be stationed in areas Esty services and be ready to deliver.  New York City has the infrastructure and economies of scale to make same-day delivery work.  The service marketing, in conjunction with Etsy products, is what will make the difference, because more shoppers will probably use it the more they are aware of it.  It’s better to market same-day delivery now before the holiday season arrives.

Testing the new service couldn’t come at a better time with the new holiday shopping season knocking at the door.  It makes sense.  A year ago, popular department store leader Macy’s quickly rolled out  same-day delivery is several large US cities, including San Francisco, Los Angeles, San Jose, Houston, Chicago, Seattle, New Jersey, and Washington DC.  This past August, Macy’s expanded its’ service into nine more US markets, with plans to add 14 more by the end of this year also.  With all of the new additions, Macy’s will surpass Amazon’s service reach in the US.

Calia Talmor, senior product manager for shipping and order management, talked about in the article the demand Etsy receives for fast delivery. She stated, “We hear from sellers that they get constant requests from buyers for getting stuff really fast.  They feel they are in a bind and actually it’s technologically almost impossible…this gives them a way to do it really easily on Etsy”.

The article mentioned how Etsy is looking to solve one of the biggest complaints from buyers and sellers in its’ marketplace, which is delivery time.  For a number of online retailers, this has become a vital aspect of gaining ground in sales and market longevity.  With a same-day courier like 1-800 Courier, web-based and physical store retailers can offer the on-time service options that online shoppers are looking for.  The New York Courier has a national footprint and can help a company like Etsy’s same-day delivery program grow.

Reference: 9.11.15, www.recode.com, Jason Del Rey, Etsy Will Test Same-Day Delivery Option in New York City

Google Launches Grocery Same-Day Services For Fresh Foods

Courier ServiceIt’s a race to the finish for e-retail, as Google competes with Amazon to see which company can efficiently expand same-day delivery nationwide.  At first it was your general online products that both retailers were delivering, but now same-day grocery appears to be the new, simultaneous pursuit.

Google hasn’t been in the running for fresh food same-day grocery until this week and has announced that it will be testing it later this year.  This will be a first for Google Express, delivering foods like fruits and vegetables.  The service will begin testing in will be the San Francisco Bay Area, which has been the common trial site for a number of web-based and physical store retailers.  It will be partnering with large grocery store chains like Whole Foods and Costco.

In other cities, like Atlanta, Whole Foods utilizes a Same-Day Courier to deliver foods bags and volume orders to businesses for a variety of in-house events.  These are big grocery stores that have the volume, and all they need is the demand to match, which Google will provide.  Wal-Mart offers same-day delivery in several US cities, including free same-day service in Canada to aggressively maintain a level of market share against Amazon Canada.  Since the retail leader is performing last-mile deliveries for its’ products, same-day grocery delivery makes sense, especially with its’ neighborhood market stores.

The idea is for a retailer to be close enough to shoppers physically, as they are online–being in arms’ reach of a customer’s door step and have the ability to respond when they place their order.  Google gains the reach to customers that it needs with its’ partners for grocery delivery.  It doesn’t have the physical store locations, however, Whole Foods and Costco does.  The short radius to deliver food items is even more critical than general household goods, electronics, and clothes.  Food has to be delivered within a few hours for it to be worth it to a hungry customer.

Google’s reason for deeper expansion into same-day grocery delivery is simple–AmazonFresh.  Amazon’s same-day grocery delivery service that is available in Seattle, Los Angeles and others, which more than likely will expand even more.  Free same-day service is now in Seattle and California.  More cities are set to be added, such as San Francisco Bay Area, Baltimore, Boston, Dallas-Fort Worth, Indianapolis, Phoenix, Philadelphia,  San Diego, Tampa Bay, Washington DC, New York, and Atlanta.

Retailers are moving same-day delivery into being a part of everyday consumer living.  Any online business seeking to compete will probably have to engage in some level of last-mile delivery in the future.  1-800 Courier is a Seattle Courier that retailers can partner with to implement a same-day program that will last, even for groceries.

Reference:  8.18.15,www.cnet.com, Richard Nieva, Google to test same-day grocery delivery service

Amazon Expands Same-Day Delivery To Seattle

Courier ServiceJust when other retailers thought they were getting a breather, Amazon comes again with additional growth with same-day delivery.  This time, it is Seattle’s turn.

Amazon has announced it is expanding same-day delivery into its’ very own Seattle.  Prime Now is officially in the hometown of the web-leading retailer.  The service is now available to be used for “tens of thousands” of products Amazon announced yesterday.  The Seattle cities that can use Prime Now includes not only Seattle, but also Bellevue, Redmond and Kirkland zip codes.  More zip codes will probably follow.

Prime members pay $99 per year to have free two-day shipping.  Prime Now is free for all members now, which is performed within a two-hour window.  One-hour delivery is available for $8.  Deliveries for the service are made between 8am and 12am local time, seven days a week.  Other e-retailers and physical store retailers that have engaged in same-day delivery have their various models, such as delivering all orders placed by 1pm.  Most of them charge for their services, from $5 and up also.

The article mentions how Amazon’s Prime Now is helping the web-based retailer to compete with big-box retailers like Wal-Mart and Target.  Wal-Mart is making heavy global web investments, becoming sole owner of China online retail leader Yahaodian. The company offers same-day delivery and next-day delivery.  With Wal-Mart’s acquisition, it will surely implement a service to compete with all of the Amazon growth.  Wal-Mart currently has same-day delivery in several US cities and free same-day shipping is available in Canada to prevent Amazon.ca from having  a hold on the market there.

Target has partnered with Google to perform its’ same-day delivery.  Its’ e-commerce running well and showing that Target is doing something right.  Target’s web sales are up 26.1% from this time last year.  Ship-from-store services is what Target has its’ sights on, planning to triple the number of stores that will fulfill online orders in the second half of the year from 140 to 450.  This service can easily be the platform for expanding the same-day delivery programs it already has in place.

Amazon said its’ service is allowing customers to “skip a trip to the store.”  Prime Now started last December and has greatly expanded since.  It has now rolled out free same-day service to Prime Members in California and Seattle.  More major US cities will be added, including the San Francisco Bay Area, Baltimore, Boston, Dallas-Fort Worth, Indianapolis, Philadelphia, Phoenix, San Diego, Tampa Bay, Washington DC, New York, and Atlanta.  At this pace, Amazon will be offering free same-day delivery nationwide.

A number of retailers have their own game plan to gain ground online.  Many are implementing same-day delivery by partnering with a same-day courier like 1-800Courier.  With its’ expertise, the Atlanta Courier can create efficient courier logistic solutions to help retailers thrive online.

Reference:  8.26.15, Yahoo News, Don Reisinger, Amazon’s same-day delivery comes to Seattle