Monthly Archives: August 2016

Amazon Has 28% Sales Growth in North America, Prime and Fast Delivery Works

same day deliveryAmazon is not just leading the pack, they are leading others by a large margin and its’ recent second quarter numbers shows that Amazon is on a track by itself.

Internet Retailer recently reported that Amazon’s net sales in North America went up 28.1% in the second quarter over the same period last year, as well as internationally by 30.1%.  Amazon also had a 58.2% increase in revenue from its Amazon Web Services cloud computing unit, resulted in overall revenue growth to 31%.  This speaks volumes to how Amazon’s loyal customer base is utilizing Prime more frequently.  More technology, reliability and convenience to order is allowing Amazon to be as trusted as a physical store.  This is more than likely a prelude on how the remaining year is going to be for Amazon.

The article mentioned how the second quarter numbers were a record net income for Amazon, equating to $857 million, which is almost ten times the net income of only $92 million in the second quarter last year.  This quarter makes the fifth consecutive profitable quarter that Amazon has had, which several retailers can’t attest to this type of profitability.  In the past, Amazon often reported quarterly losses as it invested heavily in new fulfillment centers, developing new devices, licensing movies and TV shows for its Prime Video service.  Now, the upfront investments are literally paying off for nation’s leading e-retailer.

Brian T. Olsavsky, Amazon’s senior vice president and chief financial officer discussed future implementations, as Amazon shows no signs of slowing down.  “We’re opening 18 fulfillment centers this quarter,” Olsavsky said, according to a transcript via SeekingAlpha. “To put that in perspective, we launched six in Q3 of last year.  This will bring us up to 21 net FCs for the year by the end of Q3 and that compares with 10 fulfillment centers for the first three quarters of last year on a net basis.”

In regards to Amazon’s continued rapid expansion, Olsavsky went on to say, “So, why are we expanding so much?  If you remember back to Q4 and the capacity constraints we had in Q4, primarily due to really strong FBA growth, we talked a lot in the Q4 call about the operational cost of that in Q4. Customers well taken care of, but we had additional fulfillment costs from being so tight on capacity.”  The more Amazon expands, the more it will be able to grow and sustain Same-Day Delivery to current and future markets.

Here are some more of the record stats from Amazon this second quarter:

  • North American net sales of $17.674 billion, up 28.1% from $13.796 billion in the same period a year ago.
  • International net sales of $9.844 billion, an increase of 30.1% from $7.565 billion last year.
  • North America sales of books, music and other media of $2.928 billion, an increase of 11.8% over $2.620 billion in Q2 2015. North America sales of electronics and general merchandise increased 31.6% to $14.459 billion from $10.987 billion.
  • Net income of $857 million, a sharp increase from $92 million a year earlier.

There is no doubt that retailers are going to have to do more than just have an existing, traditionally-operated online site.  Some of the strategy Amazon has implemented are some of the same ones other retailers, brick-and-mortar and e-based, are doing also including same-day delivery.  Google, Wal-Mart, Macy’s, Ace Hardware, Whole Foods, and more have all partnered with a Same-Day Courier like 1-800 Courier to create the omnichannels from online retail to the actual store via last-mile deliveries.  The Seattle Courier has a national footprint for same-day delivery, enabling it to have the versatility big companies need for quick service implementation.

Reference: 7.28.16,, Don Davis, Amazon reports 28% North American sales growth in Q2

UPS Gains Higher Revenue, Can Increase More with Same-Day Delivery

Courier ServiceAs UPS seeks to remain a leader in delivering packages, there are a number of other big name carriers that are competing for market share position.  FedEx and the US Postal Service are both being aggressive for more revenue.  Recent numbers show that UPS sales did go up, but not a lot.

UPS’s second-quarter revenue slightly increased within its’ domestic and international package divisions.  The Washington Post reported details regarding about sales and other factors impacting where the industry is currently at right now.  Other companies are beginning to weigh in on the delivery industry, which is compelling UPS to think outside the box in order to keep growing.  UPS’s revenue went up to $14.63 billion, up from $14.1 billion. Analysts surveyed by Zacks Investment Research had an expectation of $14.6 billion in revenue.  Therefore, UPS did produce a little higher than forecasted.

The article also mentioned that the US domestic package unit increased 4%,along with average daily package volume up 2.5%.  Second quarter revenue figures 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.  This was higher than $1.23 billion the same period year over.  It may not be a huge increase, but it does sow that something’s being done right.

Online retail is impacting the package delivery industry as well.  Shoppers have become more comfortable with making online purchases, which in turn, increases revenue for carriers like UPS, FedEx and the USPS.  It also creates a higher demand for Same-Day Delivery, which e-retail giant Amazon has strategically implemented the service throughout the US.  The free service is available in San Francisco, San Diego, Seattle, Dallas, New York, Philadelphia, Chicago, Boston, Richmond, Orlando, Atlanta, and several other major city markets.  With 27 major cities already with same-day delivery, Amazon probably has its’ sights on more cities to come.

This provides insight on why Amazon has leased 40 cargo planes from Boeing and Atlas Air for the purpose of creating an air cargo network.  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.  A move like this will have a wide affect on all three carriers, being Amazon uses them as delivery companies, which as a business partner, provides UPS a lot of business.

UPS is looking to shift along with today’s markets, even studying same-day delivery.  Earlier this year, UPS conducted a study on fast deliveries 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 sits in on board meetings.  After doing the same types of deliveries for years, UPS sees it may be time to enter into some new markets to meet customers where they are.

Many companies are doing the same, even partnering with a Same-Day Courier like 1-800 Courier to launch same-day logistic solutions in major cities.  The Los Angeles Courier has a national footprint and the expertise to help any business become engaged in same-day delivery.  If UPS and Amazon are clearly improving its’ business product to increase revenue, other companies can take note and do the same.

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

Online Retail Searches Grows, Consumers Want Fast Delivery Also

Online ShoppingOnline retail forecasted to reach $500 billion by 2018 and one of the biggest drivers will be the frequency of online searches that shoppers make.  A recent study provides insight to what shoppers are looking for, and the retailers that can meet the demand, will be the one the captures the sales.

Internet Retailer released an article showing that 56% of online retail searches are made via smartphone or tablet, according to a study from web measurement firm Hitwise.  The firm utilized hundreds of thousands online search queries across 3.5 million smartphones and tablets between April 10th – May 7th this year by consumers based in the US, UK and Australia.  Hitwise does consider smartphones and tablets to be mobile devices.

Hitwise looked at the specific keywords that retail consumers used for their search.  The study found that 82% of them used the words “24 hours” for their searches from mobile devices.  Other top searches included keywords like “where to buy…”, which was 84%, “near me” at 79% and “hours” was used at 79% mobile.

Beyond the deals and discounts, some keywords show that shoppers also have an interest in getting their online items fast. This is why Amazon, Google, Wal-Mart, Best Buy, and others all provide a Same-Day Delivery to meet the convenience and speed demand of consumers.  A Same-Day Courier like 1-800 Courier is a viable option to help retailers develop a same-day delivery solution so their sales online can thrive. Hitwise senior research and marketing analyst John Fetto discussed how shoppers use online retail searches 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”.  It is crucial for retailers to be able to have deals online, especially so sales aren’t lost at the register.

With shoppers creating so much activity online, it is essentially creating online sites to become more like stores at their fingertips.  Whatever a customer is looking for, technology has cause mobile devices to be where they can shop from anywhere and anytime.  This means retailers with the omnichannels to make seamless operations between e-retail and physical store locations, can always be available for customers to shop with them.

1-800 Courier has a national footprint and can quickly implement last-mile deliveries for any company, enabling them to adapt to today’s e-commerce.  The Seattle Courier offers nationwide same-day delivery, order fulfillment, multi-stop route service solutions, return deliveries, and more.  As online retail grows, more companies will need same-day services to bridge their physical stores with the web.

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

Sainsbury Rolls Out Same-Day Grocery Delivery

Same Day DeliveryBeing able to deliver your products to your customers fast hasn’t always been crucial to keeping them.  As long as you can get their order to them within a few days, they were fine and they remained loyal as well.  Yet in today’s online market, and with the pressure Amazon is putting on retailers to engage in offering various shipping options, getting shoppers their online items within the same day has become vital to being relevant in e-commerce.

Grocery store chain leader Sainsbury is not taking it lightly, as Amazon begins to expand Same-Day Delivery within the UK.  Now, Sainsbury has decided to make a move of its’ own and has announced its’ launching of same-day grocery delivery within 30 areas throughout the country.  Its’ goal is to have the service implemented in those areas by Christmas this year.  The holiday season is not only ideal to generate more revenue, but it is also a time a retailer can attract shoppers just enough to sway their loyalty from a company like Amazon.  In Sainsbury’s case, it’s AmazonFresh.

The Daily Mail article discussed how the new service will work.  For all online grocery orders that Sainsbury receives by noon, it’s shoppers will receive by 6pm the same day.  The article didn’t mention who will be performing the actual deliveries for Sainsbury, or whether the grocery retailer will be doing them itself.  Several companies that implement same-day delivery partner with a Same-Day Courier like 1-800 Courier due to have the logistical and routing expertise in order to optimize on transportation costs.  The New York Courier has helped hundreds of companies create same-day solutions nationwide.

Currently, Sainsbury offers next-day delivery on all orders placed before 11pm, as long as a delivery slot is available.  This is a commendable delivery option, however, rivals Tesco, Asda, Morrisons and Ocado offer similar services, not to mention e-retail giant Amazon.  Moving beyond its’ competition is what Sainsbury is after, and with Amazon’s pace, it doesn’t have a choice.  Sainsbury will also offer a pick-up option, which will be ready to pick up from 4pm at stores.  This gives shoppers the flexibility of not having to remain at the store so long with fast pick up in case they need to save time.

As same-day grocery delivery will be with any type of shipping, the fees for shoppers will play a part in its’ success.  Sainsbury will be charging up to £7 for same-day grocery delivery, yet will offer a membership program that customers can take advantage of to pay less. With Sainsbury’s Delivery Pass, customers will pay no delivery fee for all orders over £40.  The pass costs between £30 and £60 a year, which equates to being between $39 and $79 US dollars.  Amazon’s Prime membership program is $99, as well as newcomer Wal-Mart with its’ ShippingPass program provides free two-day shipping for $49 a year.

The shift that Sainsbury is making in the UK, is a shift that an array of big name retailers and companies are doing in the US.  Technology has propelled online business more and more to the front of the line, right next to physical store shopping.  Now, it is only a matter of who can get your online product to your front door first and consistently do it to keep the shopper coming back.

Reference: 7.21.16,, Sean Poultner, Sainsbury’s takes on Amazon with same-day delivery pledge