Monthly Archives: November 2016

$20 Billion Online Growth in Middle East

Same Day DeliveryOnline retail is forecasted to reach $500 billion by 2018 worldwide, as well as Same-Day Delivery at $987 million by 2019.  E-commerce is growing in the Middle East and expected to increase to $20 billion there this year.  It’s no reason why SOUQ.com, the Middle East’s largest online retail and marketplace platform, has announced that it will be launching same-day delivery there.

Arabian Supply Chain reported that SOUQ.com will begin offering the same-day delivery for “Fulfilled by SOUQ” (FBS) in Dubai for all online orders placed by 3pm.  It is the first e-commerce business in that region to launch this type of service, with hopes to expand throughout that area.  More than likely, the service will be established and optimized in Dubai, then SOUQ.com will implement it further.

“Our primary objective is to deliver the highest quality products and a service as efficient and quick as possible to our customers,” said Ronaldo Mouchawar, SOUQ.com CEO & Co-Founder in the article.  He also stated, “With the Fulfilled by SOUQ (FBS) program, we manage the fulfillment and logistics for third-party sellers, saving them time and money, and our home-grown logistics arm Q-Express as well as our partnership with WING.ae provide us with the most efficient delivery service in the region with real-time order tracking. We believe that our same day delivery and SOUQ delivery promise initiatives are a huge step forward in corresponding supply with customers’ demand and further making online shopping experience seamless and enjoyable.”

Mouchawar has the right strategy, shifting beyond traditional online shipping, which is what several big name retailers are doing.  In recent years, Amazon has aggressively invested and implemented same-day delivery around the world.  The e-retail leader has free same-day delivery in 27 major US markets such as the 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 launched free same-day delivery in Toronto and Vancouver, in addition to Amazon Prime in London.  Google, Wal-Mart, Macy’s, Alibaba in China, Best Buy, and more are all on some level utilizing fast delivery.

SOUQ.com COO Wisam Daoud commented about what the service will do for their business.  He stated, “This innovative initiative is one of the region’s first- enabling customers to choose from the largest assortment of products and categories at the quickest turnaround. This landmark service will allow customers to buy their products in just a few clicks and receive their purchases just a few hours later- a testament to our constant endeavor of utilizing technology and our operational expertise to further drive the e-commerce growth in the region.”

Whether it is the Middle East or US, it is clear that retail is evolving into having omnichannels that offer seamless operations between online and physical store shopping.  1-800 Courier is a great example of how any retailer can quickly enter the market of same-day delivery and get product moving.  The Los Angeles Courier will develop a sound delivery solution and perform on-time deliveries for the convenience that retailers and their customers are looking for.

Reference:  11.10.16, www.arabiansupplychain.com, ASC Staff, SOUQ.com enhances logistics with same-day delivery

11% More Online Sales Growth For Holidays, Same-Day Delivery Will Expand

Same Day DeliveryAs the holiday season approaches, a boost in sales is what retailers are expecting to happen with their respective e-commerce.  One of the latest predictions from Adobe Digital Insights shows that retailers will be quite happy with the results.

Adobe conducted a survey of over 1,000 US consumers, which 31% of US consumers stated that they will start their holiday shopping before November 1st.  This is up 5% from last year.  Shoppers appear to be planning to beat the rush in more ways than one, not only in the store lines, but online as well.  More consumers are comfortable with making online purchases, coupled with technology growth via mobile devices, is driving how likely it is for e-commerce to continue to thrive.

In a recent article by Internet retailer, Adobe’s 2016 Digital Insights Shopping Predictions report says that 57 of the 61 days during the holidays will exceed $1 billion in online sales, resulting from e-commerce sales being expected to grow 11% this holiday season.  This equates to $91.6 billion, which will be an increase from $82.5 billion from last year.  It revealed that shoppers are expected to begin buying online early, which will continue after Christmas Day.  For Thanksgiving, Black Friday and Cyber Monday, roughly 9.2% of those online sales will occur during that time, accounting for $8.4 billion, according to the Adobe study.

“The biggest online sales days keep getting bigger,” said Becky Tasker, managing analyst with Adobe Digital Insights.  These are the days that consumers take advantage of the sales and discounts that retailers offer online to generate revenue and increase web traffic.  What is happening now is that top retailers are offering Same-Day Delivery to attract shoppers that don’t want to wait on their online orders.  Companies like Amazon, Wal-Mart, Google, Ace Hardware, Best Buy, Costco, and more have all jumped into same-day delivery to capture sales with value-added service options.

Amazon, for example, has taken Amazon Prime into several major US cities nationwide.  Amazon has free same-day delivery in 27 city markets, including the San Diego, San Francisco Bay Area, Seattle-Tacoma, Dallas-Fort Worth, Indianapolis, New York, Boston, Tampa Bay, Baltimore,Washington DC, Chicago, Orlando, Nashville, Raleigh, Richmond, Tucson, Atlanta, and more.  The e-retail leader also launched free same-day delivery in Toronto and Vancouver in Canada.

During the holidays, consumers will need food items too.  Even Whole Foods has expanded same-day grocery services via the mobile grocery shopping app Instacart.  The grocery chain retailer is adding an unspecified number of markets where it will be offering same-day grocery delivery, in addition to its’ current 17 metro areas where the Instacart delivery option is being offered.

Partnering with a Same-Day Courier like 1-800 Courier can help retailers capture the holiday sales this year.  The New Jersey Courier has the courier expertise and national footprint to quickly implement same-day delivery to compete and attract shoppers to buy online from you during this season.

Reference:  10.27.16, www.internetretailer.com, Zak Stambor, Online sales will surpass $1 billion nearly every day this holiday season, Adobe predicts

Google Express Competes with Amazon Prime, Adds 13 More States

Same Day DeliveryFew retailers seem to be daring enough to take on Amazon Prime.  However, Google is not backing down and its’ recent move shows that Google Express is coming.

Earlier this month, Google launched the service in the big apple.  Now, Google has announced that it now is offering Google Express in 13 more states.  The USA Today reported how the e-retailer is gearing up for the upcoming holiday season, positioning itself to compete with Amazon in several key states, as well as several states that aren’t among the most popular areas for Same-Day Delivery.  The new US states will include Alabama, Kentucky, Utah, Florida, Georgia, North Carolina, South Carolina, Tennessee, Idaho, Montana, Oregon, Wyoming and Washington.  With same-day delivery in the southeastern region is one thing, yet having Google Express in the Midwest is another.  This could potentially be an exclusivity there that will cause shoppers to turn to Google Express.

Google is partnering with retailers like Costco, Whole Foods Market, Kohl’s, PetSmart, Road Runner Sports, Sur La Table, Fry’s, Walgreens, L’Occitane, Payless ShoeSource and Guitar Center.  Since Google’s strategy is utilizing the physical store retailers that shoppers already use, areas like the Midwest may not be a challenge after all to generate sales, especially during holiday shopping.  “At Google Express, our job is to make people’s lives easier. What we really are trying to do here is make it easier to shop from merchants you love,” Google Express General Manager Brian Elliott said in an interview with The Tennessean.

This type of service is going to not only benefit shoppers, but brick-and -mortar retailers as well.  Elliott also talked about in the article about utilizing its’ core competency to provide a product that will meet retailer needs.  He stated, “We think of ourselves as a technology platform because that’s what we’re really good at. We’re trying to build a platform that lots of merchants can participate in”.  More retailers are turning to same-day delivery to attract more shoppers to shop online to ultimately increase store sales.  This is exactly what Google Express does.

With the 13 new locations, as well as the roll out of Google Express in New York earlier this month, roughly 70 million people in these states, including the tri-state areas, will be able to shop online conveniently from their mobile device.  The more technology advances, the more Google Express and partnering retailers can capitalize on moving store products, therefore, if consumers don’t come to their store to shop, they’ll simply bring the store to their doorstep.

A Same-Day Courier like 1-800 Courier is a way for any retailer or business to grow online and allow the actual delivery aspect of same-day delivery to be handle by them.  The Portland Courier provides last-mile deliveries nationwide and is a viable option to gain more market share during the holiday shopping season and afterwards.  As companies like Google and Amazon grow, businesses will have to adjustment to compete in today’s e-commerce.

Reference:  10.25.16, USA Today, Lizzy Alfs and Brad Harper, Google Express adds delivery service to 13 more states

Holiday Shopping Set to Increase Delivery Sales for UPS

Same Day DeliveryWhen the holiday shopping season comes, retailers look forward to the increase in sales.  It also looks like UPS can too.

Internet Retailer recently reported that end-of-the-year sales are forecasted to increase for UPS between Thanksgiving and December 31.  UPS is expected to reach 700 million in package deliveries, which will be a 16.7% increase in comparison to about 600 million last year.  Kathleen Gutmann, senior vice president of worldwide sales and solutions, said during a call on UPS’s third quarter earnings, “The dramatic growth of online shopping and subsequent returns is expected to lift UPS package levels to a record high during this upcoming holiday period.  Between Thanksgiving and New Year’s Eve 2016, there are two additional operating days and we expect to complete over 700 million deliveries worldwide, about 100 million more than last year.”

For the third quarter ending September 30, the carrier leader’s US average daily package volume increased 5.7% to 15.364 million packages from 14.540 million during the same time in 2015.  Also, International package volume went up by  7.5% to 2.788 million from 2.593 million last year.  Some other third quarter numbers for UPS included:

  • Total revenue rose 4.9% to $14.928 billion from $14.237 billion in the third quarter of 2015.
  • U.S. domestic revenue increased 4.8% to $9.289 billion from $8.860 billion.
  • U.S. ground shipment revenue grew 4.8% to $6.616 billion from $6.315 billion.
  • Next Day Air revenue was up 2.6% to $1.706 billion from $1.662 billion.
  • International revenue increased 2.2% to $3.024 billion from $2.959 billion.
  • Net income increased 1.0% to $1.270 billion from $1.257 billion.

Chief financial officer Richard Peretz commented on UPS business-to-business sales.  He stated, “It’s the best growth we’ve had there in five quarters.  Returns growth in e-commerce is also very strong. It’s growing in the mid-teens.”  Despite lower industrial production, business-to-business grew roughly 2% primarily due to online retail returns, which is another benefit of the new trend of Same-Day Delivery, offered by retailers to correct shipments via close proximity retail stores.

The article also discussed how  UPS’ My Choice program will be used to help manage holiday volume surges. My Choice allows consumers who sign up to choose the delivery location of their package, whether to their home or an alternate delivery site, including a UPS Access Point location.  This program currently has 30 million members worldwide, compared with 20 million last year.  It has about 8,000 Access Point locations in the US, including UPS stores, Access Point “smart” lockers, in addition to sites like convenience stores and dry cleaners.

This is just one type of service model for speed and convenience that today’s customers demand.  Many big name retailers and companies are also turning to a Same-Day Courier like 1-800 Courier to pick up and deliver online purchases from store locations during the holiday season and beyond.  The New York Courier is a viable partner for companies that will need fast deliveries, route same-day services and even replacement error shipments.

Reference:  10.27.16, Internet Retailer, Tracy Maple, UPS expects holiday package volume to grow more than 16%

Online Holiday Sales Expected to Grow, Great Time For Fast Deliveries

Same Day DeliveryThe holidays are almost here and retailers are getting excited about the increase in sales that are on the way.  Depending on the consumer markets, this can be a very profitable time for retailers and via the latest forecast, the numbers look it will be online.

Internet Retailers recently reported how various forecasts are coming in for this holiday season and non-store sales are projected to grow between double and quadruple the rate of total sales.  The National Retail Federation (NRF) expects for non-store sales to increase 7-10% from last year, equating to roughly $117 billion for the 2016 holiday season of November and December.  The non-store sales were described as those made primarily online that include include phone and catalog sales.  One  important note from the article was that the NRF projected last year that online sales would increase by 6-8% for last year’s holiday season.  However, online holiday sales out did those numbers, reaching 9% instead.

“All of the fundamentals are in a good place, giving strength to consumers and leading us to believe that this will be a very positive holiday season,” NRF president and CEO Matthew Shay stated in the article, optimistic about this year’s sales for retailers.  He went on to say, “This year hasn’t been perfect, starting with a long summer and unseasonably warm fall, but our forecast reflects the very realistic steady momentum of the economy and industry expectations.”  The thriving of technology and the increase of value-added services like Same-Day Delivery is also playing its’ role in offering convenient online shopping options and the comfort level of online purchasing as well.

Rod Sides, Deloitte LLP vice chairman and retail and distribution sector leader weighed in on its’ forecasts about sales online this year.  He stated, “The trend to watch is the way that online, mobile and store channels influence each other.  Large e e-commerce players and digital platforms such as Facebook and Pinterest are shaping what people think a great shopping experience is—a fast, highly-curated assortment with access to visuals, information and buying sources. Since these bigger platforms are more connected to the customer than the tradition retailer, it is important that they are part of retailers’ digital marketing campaigns this holiday season”.

He concluded with discussing the biggest competition for retailers.  Sides said, “It’s likely to be the small and midsized retailers that focus on niche products and experiences. This group has been collectively stealing share from large, traditional retailers to the tune of $200 billion in annual sales over the last five years.  The retailers that compete on differentiated products and experiences should be better positioned to outperform those who try to compete on low-price, value and convenience, or continue to rely on conventional sales events and promotions”.

Many retailers are setting themselves up to be the online store that e-shoppers will turn to for the holidays.  Amazon, Google, Wal-Mart, Macy’s, Whole Foods, BestBuy, and more have all turned to offering same-day delivery as a value-added service to increase online sales.  A Same-Day Courier like 1-800 Courier can help retailers seize the promising online sales projection by offering the convenience of delivering items to shoppers, instead of them having to get involved in the holiday rush.  The Houston Courier has the courier expertise to create sound delivery solutions nationwide.

Reference:  10.4.16, www.internetretailer, Tracy Maple, Online holiday sales head for double-digit growth