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Will Wal-Mart and Target Go Same-Day For Online Baby Goods?

Online retail is a rapidly growing market for all types of goods, including baby goods. Amazon appears to have a firm grip within the market. However, retail leaders Wal-Mart and Target are competing against the e-retailer.

Internet Retailer recently reported that the baby products category has the highest penetration of sales online, and 75% of those sales occur on Amazon.com, Walmart.com and Target.com. Consumer research firm TABS Analytics showed in a new study that e-commerce accounts for 20% of all sales within the baby products market, which is currently at $30 billion per year. This outstrips the 2% penetration for all consumer packaged goods. The study also shows that 18%-24% of baby products purchases occur online. That means that Amazon/Diapers.com represents an impressive 43% of the baby products market online. Wal-Mart’s represents 23%, Target’s is at 18% and all other e-commerce players equated to roughly 12% of the market.

“Online sales of baby products are out-competing all other segments of consumer packaged goods that we have surveyed over the last three years,” said TABS Analytics CEO Kurt Jetta in the article. “Brick-and-mortar retailers with e-commerce aspirations should treat baby product sales as the frontline of their battle for online success.” This means that this market has a high potential to generate revenue for all three retailers, and it may be worth doing with it takes to capture more of it, even with offering more Same-Day Delivery to attract consumers. With baby goods having the types of sales that it has, one reason Amazon probably has an edge in sales is because of its’ vast same-day delivery program.

Indeed, Amazon has a huge footprint in this market online. The article mentioned that 75% of the $6 billion in baby products purchased online occur on e-commerce sites run by Amazon.com. This amount falls within a $30 billion total in the market from all offline and online purchases. Also, Amazon with it’s subsidiary Diapers.com, comprises 7.3%-10.6% of all baby products purchases in the US. Walmart.com accounts for 3.7%-5.8% of purchases and Target.com, 3.3%-4.3%.

The question is will Wal-Mart and Target Baby go deeper into same-day delivery? Baby goods are just one of those lines of products that are needed on a frequent basis. More and more consumers have become comfortable with shopping online as well. Wal-Mart has same-day delivery in some major US cities and Target works with Google Express providing same-day delivery.

It would make sense for both retailers to jump aboard with Amazon and expand the service. Amazon announced earlier this year that it added 11 more major US cities to its’ current free same-day delivery program. The new additional US cities include Sacramento, Stockton, Charlotte, Cincinnati, Fresno, Louisville, Raleigh, Richmond, Tucson, Milwaukee, and Nashville. Now, the e-retailer leader has 27 total markets where they offer same-day delivery program.

When companies like Amazon, Wal-Mart and Target seek after implementing same-day delivery, they partner with a Same-Day Courier like 1-800 Courier to create an effective delivery solution. The Seattle Courier has a national footprint, enabling it to be a delivery provider on a large scale and can expand from city to city.

Reference: 4.20.16, www.internetretailer.com, Stefany Zaroban, Amazon, Target and Wal-Mart battle for online sales of baby goods

Prime Members Asking Why No Same-Day Delivery in Roxbury?

With the way Amazon is stretching itself to cover the US with Same-Day Delivery, you wouldn’t consider that they may be an area that the retailer wouldn’t service. Some cities that are not in close proximity in distance to major ones, you would understand why the service isn’t being offered there. Yet, there is one city that Prime subscribers are very inquisitive regarding why same-day delivery isn’t in their town.

The Boston Globe reported how Amazon is offers same-day delivery in every Boston neighborhood except Roxbury. One of the findings by Bloomberg compared US census data showing that minority neighborhoods in several cities have not been included to offer same-day delivery there. It stated that Roxbury is 59% African-American and is the “most striking gap” found from the data. Amazon’s service stretches from Boston city limits to many suburbs and nearby communities, but not Roxbury.

The article mentioned that Amazon told Bloomberg that Roxbury’s circumstance is “an anomaly”. There are no demographics that play a role in deciding where it delivers same-day. In fact, Amazon gave Mattapan as a example, which is 85% African-American, as well as nearby majority-minority communities like Lawrence and Chelsea. This means there could be other factors weighing in on Amazon city selections.

“Yet in cities where most of those paying members are concentrated in predominantly white parts of town, a solely data-driven calculation that looks at numbers instead of people can reinforce long-entrenched inequality in access to retail services,” said the Bloomberg writers. Amazon spokesman Scott Stanzel said in a statement, “We will continue expanding our delivery capabilities and are adding more zip codes rapidly”. Either way, it appears Roxbury Prime members want same-day delivery, and we will see if the city is added.

One of Amazon’s big electronic competitors, Best Buy, recently made headlines by announcing it will be expanding its’ current same-day delivery testing into 13 major metropolitan markets throughout the US. Last year, Best Buy rolled out testing in San Francisco and its’ surrounding areas, in addition to Washington DC and New York. Best Buy is the leader in consumer electronics, but the move to engage in same-day services is being driven in part due to Amazon. With so much access by customers for convenience, as well as a dependable e-retailer like Amazon, it is clear that Best Buy had to meet customer demand and provide a fast delivery option as well.

Online retail is projected to reach $500 billion by 2018, as well as same-day delivery to climb to $987 million by 2019. It makes sense why Amazon is moving at such as fast pace with same-day delivery and its’ competitors will have to get on board with the trendy service option, or get left behind.. A Same-Day Courier like 1-800 Courier is who retailers like Amazon, Best Buy and others are partnering with to implement a same-day delivery program that meets their online needs. The Boston Courier has the ability to provide nationwide coverage, which large businesses are looking for.

Reference: 4.22.16, www.boston.com, Trefis Team, Adam Vaccaro and Allison Pohle, Amazon offers same-day delivery to every Boston neighborhood, except Roxbury

Best Buy Competing With Amazon, Expands Same-Day Delivery Testing

In light of how Amazon is making several expansions to its’ free Same-Day Delivery program, retailers are going to jump on board with the service in order to keep pace. Best Buy saw this is what had to be done, and last year, it began a long-term plan to implement same-day delivery with rolling out service tests in San Francisco and its’ surrounding areas, in addition to Washington DC and New York. Now the testing phase is out of the way in that area, BestBuy’s latest announcement makes a bold statement that it is ready to test same-day delivery even more and eventually take on Amazon.

Forbes.com recently reported that Best Buy has announced that it is expanding its’ testing of same-day delivery to 13 major metropolitan markets nationwide. The article stated per Best Buy, the same day delivery initiative is part of its’ ongoing commitment to improve the in-store and online shopping experience. There is a heavier focus on online initiatives, as same-day delivery adds a level of convenience that a segment of customers are demanding that have become comfortable with online shopping. It is also becoming more and more attractive for retailers to use the service as a way to drive traffic to their sites, as well as increase physical store traffic.

The electronic retailer has teamed up with start-up delivery company Deliv to handle the actual deliveries. Deliv’s service is based on a crowdsourcing approach to pick up and deliver online purchases directly from BestBuy stores; they act as warehouses for Deliv to quickly fulfill online orders. BestBuy has over 400 stores in a variety of major US cities nationwide, which positions the retailer distance-wise to provide same-day delivery on a mass scale. With 13 metropolitan city markets to begin with, more than likely, there will be plenty more to come, especially during the holiday season.

Amazon isn’t the only driver behind Best Buy’s pursuit to increase revenue. Forbes stated that consumer electronics has the highest online sales percentage in US retail. According the eMarketer, computer and consumer electronics revenue from online retail sales in the US will exceed $85 billion this year. It will also grow to over $100 billion in 2018, making it the maximum revenue generated by any US retail product category. These figures will result in seeing more same-day delivery from Best Buy, being that it is the largest consumer electronics retailer in the US.

Trends are favoring that same-day delivery is going to continue to play a huge role in online retail. Not only is Best Buy and Amazon engaged in last-mile deliveries, Google, Macy’s, Nordstrom’s, Whole Foods, and more are also. A Same-Day Courier like 1-800 Courier is a viable partner for any retailer seeking to stay current with e-commerce and increase online sales. The Washington DC Courier has a nationwide footprint and can help big companies like Best Buy thrive with same-day delivery.

Reference: 4.13.16, www.forbes.com, Trefis Team, Same Day Delivery: Best Buy’s Plan to Take On Amazon?

Amazon Takes Same-Day Delivery Into 11 More Cities

No retailer has expected Amazon to expand Same-Day Delivery as it has, revolutionizing e-commerce and business trends. Amazon’s precise and efficient logistical delivery systems has resulted in a higher shopper comfort level, causing the e-retailer to rapidly expand online. Its’ current same-day delivery program is now expanding also.

In a recent report by Forbes, Amazon has announced that it has officially launched free same-day delivery in 11 more US cities. Those major cities include Sacramento, Stockton, Charlotte, Cincinnati, Fresno, Louisville, Milwaukee, Nashville, Raleigh, Richmond, and Tucson. Prime members that place their orders by 12noon, will receive their items by 9pm the same day. The service is available 7 days a week also. Normally, same-day delivery will have a substantial window-time in order to make sure all deliveries are made on time. Yet, Amazon even has Prime Now, which delivers online purchases within two hours. The demographics and infrastructure of major US cities helps create effective same-day delivery programs like these.

The other previous cities that already have free same-day delivery include the San Francisco Bay Area, Seattle-Tacoma, Dallas-Fort Worth, San Diego, New York, Philadelphia, Indianapolis, Phoenix, Tampa Bay, Baltimore, Boston, Washington DC, Chicago, Atlanta, and Orlando. Amazon also rolled out free same-day delivery last year in 14 metropolitan cities the US, starting with California cities. The robust retailer has its’ sights on nationwide same-day delivery, and at this pace, Amazon will have it done within a few years.

Amazon Vice President of Prime Greg Greeley said in the article, “Prime was developed to make shopping on Amazon fast and convenient, and millions of members have used Prime FREE Same-Day Delivery to make their lives even easier. We keep making Prime better, and as our operational capabilities grow, we will continue to invent and expand delivery options that customers love.” The retail leader’s Prime fee can account for between $4 billion and almost $6 billion in revenue annually, based on estimates in the range of 40 million to 60 million members. It makes sense that Amazon is after making Prime bigger and bigger.

Earlier this year, Amazon even raised its’ minimum online order amounts for non-Prime members from $35 to $49 to qualify for free shipping. For about a decade, Amazon’s minimum order threshold was $25 until 2013, which when it first went up to $35. Now, it’s locked in at an even higher amount. The new threshold has been created in hopes to drive regular customers into being all in with Amazon and become actual Prime members. The annual fee from Prime assures Amazon of customer loyalty and revenue, along with whatever it makes from sales.

With online shopping is expected to reach $500 billion by 2018, retailers need to get on board with creating the omnichannels to link in-store to online sales via same-day delivery. Amazon is leading the way, as well as Google, Macy’s, and more. Several companies partner with an efficient Same-Day Courier like 1-800 Courier to implement same-day delivery. The Sacramento Courier is well-known for being able to launch massive roll-outs of the service on a national scale. 1-800 Courier has the courier expertise and technology that retailers are after to build a successful platform for same-day services.

Reference: 4.8.16,www.forbes.com, Amit Chowdhry, Amazon Adds 11 More Cities To Same-Day Delivery Service

Whole Foods Expands Same-Day Grocery In California and Baltimore

same day groceries

It’s not a light matter when Whole Foods is getting aggressive regarding Same-Day Delivery of groceries. What seemed to be impossible to figure out, more and more retailers are finding the right mix to make same-day grocery delivery successful. Whole Foods is moving steady and from its’ recent move, it’s clear that the supermarket chain could be aiming to go nationwide with the service.

Internet Retailer recently reported that Whole Foods is again expanding its same-day grocery services, working with mobile grocery shopping app Instacart. Whole Foods has been working with Instacart since 2014 and has been growing the service ever since. Instacart CEO Apoorva Mehta commented in the article regarding their growth with Whole Foods, stating “Instacart and Whole Foods Market share a mutual commitment to providing our customers with the easiest and most seamless grocery shopping experience possible. We look forward to continuing to innovate with Whole Foods Market in the services that we can bring to users.” Just like other store retailers, Whole Foods is creating the omnichannels that make in-store and online food selling seamless.

The new growth means that Whole Foods will be adding an unspecified number of markets in which it will offer same-day grocery delivery, in addition to the 17 metro areas where Whole Foods customers already have the Instacart delivery option. Shoppers can order groceries from Whole Foods via Instacart’s mobile app or website in major US cities such as Chicago, Boston, San Francisco, and Washington, D.C. and more. So far, the announcement only discussed the new expansion markets to include Orange County, California, and Baltimore. However, Whole Foods desires to reach customers on the go, and it wouldn’t be a surprise that more cities are to come.

Grocery same-day delivery is just like any other retailer that offers the service with non-perishable items. The pricing must be low and attractive, yet at the competitive and cost-effective. Whole Foods’ grocery delivers within a one-hour window for $5.99, as well as a two-hour window for $3.99. Food has to be delivered consistently fast and accurate. To meet this type of demand, most supermarket chains and retailers partner with a Same-Day Courier like 1-800 Courier to perform the actual delivery services. The Baltimore Courier has the courier expertise and technology to match the e-commerce that comes with a mobile app.

To add to what Whole Foods is doing, the supermarket chain is offering customers online coupons. Just last month, Whole Foods released online coupons through Instacart’s mobile app as well. The key is getting new shoppers, even loyal customers, try the food delivery service and then this could position Whole Foods for repeat delivery sales. With Google, AmazonFresh and other e-retailers engaging in grocery retail, Whole Foods is going to need more strategic innovation such as this online.

Reference: 3.10.16, www.internetretailer.com, Matt Linder, Whole Foods expands delivery services with Instacart

Nordstrom Forecasts 30% Online Growth, Yet How To Cut Delivery Costs

online shopping

What makes online retail a gold mine is that it’s limited only by the innovation of the retailers themselves. It is companies like Amazon that are showing others how to get it done, by maximizing their e-commerce potential. Nordstrom is one department store leader that is looking to get a grasp on balancing online profit and the very costs of providing it. Nordstrom Chief financial officer Mike Koppel talked about in a recent article regarding Nordstrom’s dilemma. He stated if “anyone out there” who has figured it out, because “we have a lot of work to do.”

The report from the Internet Retailer via Bloomberg News stated that Nordstrom expect online sales to account for 30% of its’ business by 2020. This shows that there will be some form of uptick for the retailer with shoppers desiring to shop online. Online retail itself is set to reach $500 billion by 2018. As time goes on and business trends begin to evolve, e-commerce is going to take a greater role in generate revenue for brick-and-mortar stores like Nordstrom. The key moving beyond the obstacles in its way.

Koppel talked about in the article what Norstrom was facing and what was hurting the company’s bottom line. The article stated, “He explained that the “old model”—big physical stores located mostly in malls—came with high fixed costs, but high leverage. In other words, you had to pour a lot of money into literal bricks and mortar to build stores and train staff, but once your sales reached a sort of break-even point, all the rest was gravy. In essence, the money from a banner sales year could flow straight down to the bottom line once those initial costs were paid for. And that became pretty easy to anticipate and plan against.

Enter the Internet, where the promise of high profits came from the theory that a retailer could sell stuff without having to pay for the overhead expenses of operating locations and hiring lots of labor. Not exactly”, Koppel said.What’s happening is online sales comes with low fixed costs, but the price tag has high variable costs. This means that the more Nordstrom sells online, the more it spends on operating costs, such as pick, pack and deliver those goods. And now, “business has been flattening in malls and growing in e-commerce, and so the two strong trends are impacting operating margins,” Koppel told analysts. The great thing going for Nordstrom is that its’ customers who shop both online and in stores spend three to four times as much there than those who shop just one channel. Nordstrom may be able to do what some other big name retailers have done, which is implement online store pick up and Same-Day Delivery. Macy’s and Wal-Mart have all implement both services.

A Same-Day Courier like 1-800 Courier is a viable option to develop cost-effective, same-day service solutions that will attract online shoppers by meeting a demand for convenience. Technology is driving online growth and the Boston Courier has the delivery expertise to take Nordstrom to the next level online.

Reference: 3.14.16, www.internetretailer.com, Bloomberg News, E-commerce eats into Nordstrom’s profits, and that’s OK

Kate Spade Set To Launch In-Store Pick Up Online Services

The growth online isn’t making it easy for retail manufacturers. The way shoppers have changed their perspective on making their purchases is causing retailers to revamp how to customers into their stores. One service that companies are opting to offer is online order and in-store pick up services. It allows customers to take advantage of a value-added convenience service, and at the same time, physical store retailers are able to get traffic into their doors.

Internet Retailer recently reported that luxury apparel and accessories manufacturer Kate Spade is planning to officially launch a buy online, pick up in store program later this year. The company tested the service late last year and had success. Within the article, Chief operating officer George Carrara said, “We know that regardless of which (way) she actually transacts, whether that’s online or in a store, that that journey is increasingly starting in the online space, which is certainly advantageous to us in terms of our ability to tell great stories and build engagement in the online experience”.

The fourth quarter numbers show all the reasons why Spade is deciding to offer the service. It’s net revenue last year went up 7.6% to $429.0 million, from $398.6 million the previous year. Sales from Kate Spade North America reached $371.3 million, up 13.7% from $326.7 million. Yet at the same time, sales from Kate Spade International of $52.1 million, down 13.3% from $60.1 million the year prior. Also, the retailer’s net income went drastically down to $61.5 million, a 51.4% drop from $126.5 million.

One company that has added in-store pick up to its’ repertoire is Wal-Mart. The retail leader has implemented Wal-MarttoGo in several major US cities. Wal-MarttoGo allows customers to place their orders online and perform their own pick-up at select Wal-Mart stores. Loyal customers may already be planning to shop there, and the service only gives them another option to shop online if they choose to. This results in retaining loyal customers.

Another service that Wal-Mart, Macy’s, Amazon, Google, and others have implemented that Kate Spade may consider is launching Same-Day Delivery this year as well. Since it tested its’ store pick up program during the holidays last year, Spade could test same-day delivery within a small market this year. Same-day delivery is expected to reach $987 million by 2019 in the US, which has a lot to do with online retail growth.

A Same-Day Courier like 1-800 Courier partners with a variety of retailers and businesses nationwide, implementing optimal same-day logistic solutions. The Dallas Courier has the delivery expertise to help any company excel online.

Reference: 3.7.16, www.internetretailer.com, Matt Linder, Kate Spade will launch buy online, pickup in store

Amazon ‘s Minimum Order For Free Shipping Goes Up

If there’s one thing for sure, Amazon knows what it’s doing providing Prime members free two-day shipping. Since shoppers feel they have a level of peace of mind with using Amazon throughout the year, it’s a deal that appears to be well worth it. With its’ latest move, Amazon now has decided to, at the least, test the waters to see if non-Prime members will come on board, expanding its’ already dominating market share online.

The Wall Street Journal recently reported that Amazon has announced that it is raising its’ minimum online order amounts for non-Prime members from $35 to $49 to qualify for free shipping. The new threshold is said to be an incentive for regular customers to become Prime members. For $99 annually, Prime members get to receive free unlimited two-day shipping, in addition to streaming movie and music service. For roughly a decade, Amazon’s minimum order threshold was $25 until 2013, which the retailer took the amount up to $35.

Amazon has reasons to make Prime bigger. The article mentioned how the retail leader’s annual Prime fee can account for between $4 billion and almost $6 billion in revenue per year, based on estimates in the range of 40 million to 60 million members. Also, Prime customers spend about double what non-members do over the course of the year, so it makes sense why Amazon is analyzing what can get border line non-members to switch to Prime.

The increase in the minimum amount also has to do with Amazon’s pursuit to contain its’ shipping costs. The article stated that shipping expenses went up by 37%, equating to $4.17 billion in the last quarter of 2015. This meant as a percentage of sales, its’ shipping costs increased 12.5%, up from 10.9% in 2014. In response to order amount increase, Amazon only stated that “from time to time, we review our shipping options.” With it still being early in the year, the retailer could be attempting to recoup for from the higher shipping expenses. It also could be preparing to make sure it doesn’t have the same shipping cost results this year. The more that customers order, the more revenue is generated to offset shipping costs.

With online shopping is expected to reach to $500 billion by 2018, Amazon knows the time is now to continue its’ momentum as the leading US e-retailer.
The competition is already locked in with the same $49 minimum, even higher. Wal-Mart’s minimum is $50, Jet.com is at $35 and Target offers a minimum of $25. Amazon’s shift to a higher minimum will get the attention of other retailers and they will shift their shipping options, if they deem it necessary to gain market share. Some retailers have turned to Same-Day Delivery to attract shoppers as well.

A number of retailers and businesses have partnered with 1-800 Courier is a New Jersey Courier on the service aspect of fulfilling orders once their purchased online. The Same-Day Courier utilizes the latest in courier technology to assist companies in maximizing their e-retail operations and devise shipping strategies to compete with Amazon, Macy’s and more.

Reference: 2.22.16, www.wsj.com, Greg Bensinger, Amazon Boosts Free-Shipping Minimum to $49, Elevating Prime Service

Snapdeal and dPronto Grow Same-Day Delivery in India

In the US, various big name retail companies are partnering together to get the best out of their e-commerce via Same-Day Delivery. It is not only swiping across the US to capture more online sales, it is also moving beyond just a trend worldwide. Same-day delivery has a forecasted increase to $987 million by 2019 in the US. With the online retail growth in other countries, the service will probably be even higher in those countries as well. For all the right reasons, two companies in India have decided to make a strategic move, and it involves using same-day delivery to go to the next level.

First Post recently reported that Snapdeal and dPronto have partnered in an effort to offer same-day delivery throughout India. The partnership will enable Snapdeal to expand it’s customer base into 600 towns across the country, utilizing dPronto’s delivery staff to perform the actual deliveries. The delivery expert is a last-mile delivery company with a niche of working with e-commerce companies (including hyperlocal market places), offering them last mile logistics services. DPronto executes their services by leveraging trained fresh manpower supply, disruptive technology and efficient processes that minimize delivery turnaround times and optimize costs.

DPronto’s trained delivery staff will pick up packages from Snapdeal’s sellers or fulfillment centers, and then, deliver the packages to Snapdeal customers the same day. Whenever a company expands same-day delivery, the last thing a retailer wants to compromise accuracy and on-time service. With fast service comes a high level of demand for both of these core competencies. Snapdeal currently has an on-time success rate of 90% with same day delivery, yet will it be able to effectively handle the increase.

DPronto also will be created more jobs there, in particular for India’s youth. Ashish Chitravanshi, Vice President, Operations at Snapdeal, commented on the initiative stating, “dPronto’s initiative of empowering the less privileged youth by making them employable is highly commendable. We are excited to be partnering with them to further strengthen our last mile delivery capabilities as we remain committed to our promise of catering to every customer in every pin code.”

Macy’s is an example of a retailer that joined with start-up company Deliv to meet online fulfillment demand from their stores. Initially, Macy’s used Deliv to perform same-day delivery in 8 major US cities, which included Los Angeles, San Francisco, San Jose, Seattle, Houston, Washington DC, New Jersey, and Chicago. Sister company Bloomingdale’s also launched the service in San Francisco, Los Angeles, San Jose, and Chicago also. Macy’s now has same-day delivery in at least 17 markets, leading the way right along with Amazon.

Like Snapdeal, retailers and other businesses can partner with a Same-Day Courier like 1-800 Courier to expand their e-commerce reach and expand with same-day delivery across the US. The New York Courier has the nationwide footprint to accommodate any big company with multiple big city locations with last-mile deliveries. The courier is a trusted source for accurate and on-time same-day logistic solutions.

Reference: 3.3.16, www.firstpost.com, FP Staff, Snapdeal partners with dPronto to expand its customer base for same day delivery

UPS Invests In Deliv To Study Same-Day Delivery

The time for UPS to expand into Same-Day Delivery could be forming right before us with its’ recent announcement. Business Insider has reported that UPS has made a strategic investment into start-up company Deliv in order to study the same-day delivery model, analyzing how that market segment evolves. Same-day delivery is forecasted to reach $987 million by 2019. This is probably one reason that the world’s largest package delivery company is making strides to get on board with the popular service.

UPS’s managing director of the UPS Strategic Enterprise Fund, Rimas Kapeskas, commented about the investment in the phone interview. He said, “We don’t participate in the on-demand business as much, and the consumer side of this is still a bit of a mystery to us. This is a rapidly evolving marketplace and we thought we could learn more by being close to it.” This is the venture arm of UPS, which is leading a $28 million funding round for Palo Alto, California-based Deliv. The article didn’t disclose the investment size being committed to the venture, yet it did state that UPS will take a minority stake in Deliv and sit in on board meetings.

UPS and Deliv are learning from one another. “We are solving a different problem in the last mile,” Deliv Chief Executive Daphne Carmeli stated in a phone interview also. She went on to say, “and they (UPS) are looking to learn that model and looking to learn about growth in same-day delivery as we are interested to learn from their success.” Both have their respective niches to help each other gain more ground, ultimately to compete against Amazon.

In recent years, Amazon has built strategically-placed order fulfillment centers in order to implement what it is doing now–same-day delivery. It also has same-day delivery in the San Francisco Bay Area, Seattle-Tacoma, Dallas-Fort Worth, Indianapolis, Baltimore, Boston, Phoenix, San Diego, Philadelphia, Washington DC, Tampa Bay, Atlanta, and New York. Last year, Amazon launched free same-day delivery last year in 14 metropolitan cities the US, beginning with California cities, in addition to free same-day delivery in Orlando and Chicago.

The e-retailer is creating much distance between itself and its’ competitors. From starting to open store locations to pursuing more Prime members, Amazon is a fast moving train, even with stepping into direct competition with UPS and FedEx. The retail leader is planning to develop a global delivery network, beginning in China. Online package deliveries is big for Amazon also and China’s e-commerce is expected to reach $1 trillion by 2020, meeting the demand of 900 million shoppers. A global delivery network will result in customers not having to choose UPS, FedEx, DHL, and others for shipping. They will be able to ship directly via Amazon.com.

UPS has some ground work to do in order to not only implement same-day delivery, but to do it effectively. Either way, same-day delivery is growing at a rapid pace and shows no signs of slowing down. Google, Macy’s, Kohl’s, BestBuy, and more are all on board with the service, and it is changing the way we do business. 1-800 Courier is a Nationwide Same-Day Courier that retailers and delivery companies can partner with to establish optimal same-day solutions. The Chicago Courier has the courier expertise and technology to help capture business in today’s e-commerce market.

Reference: 2.22.16, businessinsider.com, Nick Carey/Mari Saito, With Deliv investment, UPS hopes to study same-day delivery market

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