Monthly Archives: February 2016

Overstock 4th Quarter Sales Low, But Same-Day Delivery Can Create Growth

online shoppingIt takes a lot for online companies to remain steady and have revenue success with their business model.  Overstock.com has been just like other big e-retailers, seeking after capturing more market share, not to mention competing with the likes of Amazon.  The numbers show that Overstock didn’t have quite the big year it desired, yet it still did grow.

Overstock.com grew revenue last year, being at an increase of 10.7%.  This equated to of $1.66 billion, up from $1.50 billion in 2014. However, sales growth was slower during the fourth quarter, going up by only 2.1%, a difference of $480.3 million from $470.4 million the prior year.  This is found to be interesting being that the fourth quarter is the highlight for retail sales, especially to make up for any quarter losses in the prior quarters of the year.  Overstock could have been looking to have generated more revenue between Black Friday and Christmas.

What could be at the source of the low revenue was due to Overstock’s increasing popularity of its’ multi-tiered Club O loyalty program.  The article stated that per the e-retailer’s filing with the U.S. Securities and Exchange Commission, it changed Club O into a two-tiered system, silver and gold, that allows shoppers to earn rewards instead of coupons, which may have hurt Overstock’s short-term numbers.  A key figure was that the company’s gross profit in the fourth quarter went down 2.7%, equating $83.1 million, which is down from $85.4 million in 2014.

Overstock.com did comment in the article regarding the impact of its’ shift from coupons to a rewards system for its’ customers.  Overstock stated, “We believe that the shift from coupons to rewards will benefit us in the long term, but we have experienced some difficulties with the transition, and in the short term we believe it slowed our revenue growth as customers take time to become accustomed to this change.  We are continuing to test and refine our approach in this transition.”

Also during last year’s fourth quarter, Overstock.com’s partner revenue went up to $446.7 million.  This was a 4.4% jump from $427.8 million the year prior.  Partner revenue involved Overstock orders that were fulfilled by other retailers that sell through its’ website.  Many companies are finding that what can boost sales is the offer Same-Day Delivery as an option for shoppers to get their online items faster.  Retail leaders like Amazon, Google, Macy’s, and more all have the perspective that to grow in today’s market, the delivery aspect of online retail is becoming just as vital as the actual customer purchase itself.

With online shopping is expected to reach to $500 billion by 2018, companies like Overstock.com which will result in more and more companies seeking after delivery companies that have the technology to literally get customers online items where they are.  1-800 Courier is a Chicago Courier that is a viable option for any retailer to partner with for optimal same-day solutions.  The Same-Day Courier uses the latest in courier technology to help companies deliver nationwide, from in-store pick ups to fulfilling orders online.

Reference: 2.10.16, www.internetretailer.com, Matt Lindner, Overstock.com’s sales grow 2.1% in Q4, 10.7% for the year

Technology Driving Same-Day Delivery for Online Retail

courier serviceNo one is taking lightly the innovation that technology has brought to online retail.  The advances have amounted to shoppers having instant access to what retailers are offering, and to meet the rising demand to get items into their hands fast, Same-Day Delivery is being coupled with technology to make it happen.  Various apps are now being incorporated by delivery companies that are performing the transportation piece of online order fulfillment, such as Uber’s application programming interface (API) into its’ app in order to provide last-mile deliveries.

It has been reported by Multichannel Merchant that Uber is looking to expand its’ current UberRUSH program for retailers, which is its’ model of same-day delivery.  Uber was initially set up for picking up and transporting people, yet now the delivery company has extended its’ services to delivering online products.  A crowdsourcing approach allows everyday people to be drivers, stationed nationwide to do delivers for its’ retail partners.  This cannot be effective without the technology of Uber’s API system.  Uber’s app is used by several retail and delivery partners, which include T-Mobile, 1-800-Flowers, Nordstrom, Rent the Runway and Google Express.

Curbside is another company that has added the UberRUSH option via the API.  Company co-founder and CEO Jaron Waldman mentioned in the report that it was a logical extension of Curbside’s bread-and-butter offering, giving retailers more options for fast delivery.  For example, someone could order an item for pickup from Curbside, change their mind for whatever reason and have it delivered via Uber.

Waldman talked more about same-day delivery further stating, “This was driven by interest from our retail partners, one in particular who was very focused on Uber.  With the growing interest in same-day delivery for retail, integrating the UberRUSH API into our core offering is a seamless way to hook into a fantastic same-day offering for consumers. If you save 10 minutes for customers by extending our store pickup option in this way, it’s pretty powerful.”  Some Curbside clients include Target, Best Buy, CVS and Walgreens.

Uber also talked what delivery providers have found a niche in adding value and saving on transportation costs for retailers and businesses.  Uber stated in a blog post, “We’re excited about how (UberRUSH) supports local businesses, but we also know that a lot of companies – and their customers – are looking for an easy way to get items delivered more quickly.  Many companies rely on automated operations, have complex logistics networks or are in need of a more flexible solution that can fit their business and customers’ needs.”  Every delivery company, such as a Same-Day Courier like 1-800 Courier, is able to use technology to streamline supply chains and connect omnichannels for retailers to fulfilling online orders.

Technology will be driver for the forecasted online retail growth to come.  Online shopping is expected to reach to $500 billion by 2018, which will result in more and more companies seeking after delivery companies that have the technology to literally get customers online items where they are.  1-800 Courier is a Chicago Courier that is a viable option for any retailer to partner with for optimal same-day solutions.  The courier uses the latest in courier technology to help companies deliver nationwide.

Reference: 3.2.16, Multichannel Merchant, Mike O’Brien, UberRUSH Gains Retail Partners with New Same-Day Delivery API

Shoppers Comfort Level Grows In Europe Online

Courier ServiceIt’s time for online shopping to become more of staple in the business world and the numbers show it.  Retailers in the US are going forward with innovation and strategy to take e-commerce higher, yet the driver behind it all is the shopper demand.  Internet Retailer has reported that shopper demand is not only growing in US, but also abroad in Europe.

The article discussed how 53% of consumers in Europe bought something online in 2015.  It mentioned that the proportion of consumers age 16-74 who made a purchase online within the 12 months prior to the survey stood at 53% last year, compared with 43% in a 2012 via the EU statistic agency Eurostat report.  This means that online shopping increased10% in three years there.  The percentage represents a high-water mark and exceeds the European Commission’s Digital Agenda goals for technology adoption in the region.

Eurostat also found in the survey that 81% of individuals in the target age group in the 28-country European Union used the Internet in the 12 months prior to a new survey, and 65% of those regular internet users bought or ordered goods or services for private use.  This means that there are repeat shoppers that are buying online more and more on a regular basis confirming Europe likes it.  This is an increase of 15% since 2007.  Also, Eurostat found that 30% of European online shoppers purchased goods or services from sellers in other EU countries, which is up from 25% in a 2012.  18% of shoppers bought from sellers outside the EU, compared to 13% in 2012 as well.

Retailers realize the magnitude of making their products accessible and convenient online.  Shoppers have mobile devices at their disposal to be able place an online order in an instant.  This is the store that retailers are pouring investments into to make sure they capture the market that isn’t step foot into their physical doors.  Online retail is forecasted to reach $500 billion by 2018, and retailers are getting their position set, as e-commerce is shifting how we do business, just like cell phones shifted way we daily communicate.  Big name retailers are even now taking their web presence farther by offering same-day delivery, not only in the US, but also globally.

For example, Amazon has not only expanded with same-day delivery in the US, but it is establishing its’ delivery foundation in England via acquisitions.  Wal-Mart engages in some same-day delivery.  Last year, Wal-Mart has fully acquired Yihaodian to establish its’ online retail presence in China.  Amazon is looking compete in China also, which same-day delivery will probably be utilized also.  Online retail is expected to hit $1 trillion by 2019 there.

Macy’s is one physical store retailer that has seen where online shopping is headed and made strides since 2013 to offer one of the highest levels of convenience with same-day delivery.  The department store leader partnered with delivery company Deliv a few years ago and has consistently expanded since within several major US cities.  Last year, Kohl’s rolled out same-day delivery in six more major US cities, including Los Angeles, Brooklyn/Queens, Northern New Jersey, Boston, Philadelphia, and Miami.  E-commerce has grown 40% annually and same-day delivery is forecasted to grow to $987 million by 2019.  It appears the stage is set for retailers to provide the optimal online sales and delivery model ever for customers in years to come.

Online shopping is increasing in Europe, as trust in technology only adds to customers becoming more comfortable.  The convenience factor is what retailers want to bring to the table with same-day delivery and a Same-Day Courier like 1-800 Courier is helping them do so. The Phoenix Courier is a viable option to join comfort with convenience to meet US shopper demand.

Reference: 1.22.16, www.internetretailer.com, Bill Briggs, Europeans grow more comfortable shopping online