Category Archives: Nationwide Courier

Argos Goes Same-Day Delivery Across the UK

Courier ServiceThere is a lot of movement in the retail industry toward making same-day delivery a staple in service offerings.  It’s imperative for physical store and web-based retailers to implement a fast delivery option, which may be considered out-of-the box for some companies.  However, when big name Amazon, Google, Macy’s, and others continue to add same-day delivery to more and more cities, it is only a matter of time that businesses will have to follow their lead in order to stay competitive.

UK high-street retailer Argos is not waiting to jump into same-day delivery.  It has recently announced the launch of the service throughout the UK weeks before Black Friday is here.  Argos’ Fast Track delivery is its’ fast service which will used for 20,000 products this week.  The article mentioned how Argos’ flat fee of £3.95 undercuts Amazon’s Prime Now at £6.99 per order.  Amazon also only delivers in certain London postcodes and its’ service is £79 a year for its Prime scheme.

This is in large part to the robust growth of Amazon and Argos has to compete.  Sophie McCarthy, a retail analyst with Conlumino, commented in the article regarding Argos’ decision to roll out same-day delivery.  She stated, “This has the potential to be a serious game changer, not only for Argos, but for the wider UK retail market as retailers increasingly chase fulfillment as a competitive weapon.  There is no doubt that the introduction of a same-day delivery service for as little as £3.95 is going to be an expensive business for Argos, but the costs of it not competing on delivery are likely to be even higher – its last trading update revealed further sales declines as it struggled to evolve its traditional catalogue to fit the demands of the modern consumer.”

Indeed Amazon is going to continue to expand in the UK, globally and even in the US.  The retailer leader Amazon is also offering same-day delivery free in some cities in California, which included 14 Los Angeles metropolitan cities earlier this year.  Amazon’s same-day delivery is currently in the San Francisco Bay Area, Baltimore, Dallas-Fort Worth, Indianapolis, Boston, New York, Philadelphia, Phoenix, San Diego, Tampa Bay, Atlanta, Washington DC and in its’ hometown of Seattle.  Free delivery may not only be planned for these cities in the US, but also a model for service worldwide.

Argos definitely has a fight on its’ hands when it comes to facing Amazon in the UK.  So do retailers in the US as well.  To implement same-day delivery quickly in the US, a Same-Day Courier like 1-800 Couriercan help on a massive scale.  The Houston Courier has a national footprint and the expertise to build a fitting delivery program to optimally fulfill online orders.  A number of retailers that offer same-day delivery are partnering with a courier to do it for them, especially web-based ones.

Reference: 10.6.15, www.theguardian.com, Rebecca Smithers, Argos squares up to Amazon with same-day delivery across UK

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

Will eBay Start Up Same-Day Delivery Again?

Same Day DeliveryWhen its’ time to pull away a business venture that isn’t profiting, you have to make the necessary adjustments sooner than later.  It appears eBay has found that its’ same-day delivery pursuit in the US needs to be shut down. Yet, will eBay turn to same-day delivery again?

A recent report talked about how eBay decided to throw in the towel after a three-year push. EBay Now fought against strong competitors like Amazon and Google that are in the same race. Former eBay CEO, John Donahoe, said the service is “not essential to our core target customer”.  CNet.com reported how eBay shut down the eBay Now app late last year.  EBay also has pulled three less popular apps — eBay Motors, eBay Fashion and eBay Valet — to cut down customer confusion and streamline attention to it’s primary eBay app.

CNet also highlighted an eBay spokeswoman regarding the scale back and ending of eBay Now. “We continue to explore a variety of delivery options such as buy-online-pickup-in-store,” an eBay spokeswoman said.  This isn’t anything new, in fact, a number of companies are opting to go the route of in-store pick-up.  Wal-Mart is one physical store retailer that not only offers same-day delivery, but also Wal-MartToGo.  The service offers customers the option of placing their order online, and then coming to the store to pick-up.  A Wal-Mart representative pulls the order and its’ ready upon arrival.  In Denver, Wal-MartToGo was tested for pick-up via curbside as well.

One reason eBay Now ended because the their products didn’t match in volume the types of products that same-day delivery thrives on. Shoppers utilize same-day delivery with groceries, diapers, and food orders, in contrast to eBay’s primary staples, such as collectibles, antiques and vintage clothing. Also, eBay stated that these same-day delivery networks tended to exclude eBay’s core smaller merchants, since many don’t have storefronts or warehouses.  Fast delivery needs volume to be successful long-term.  The result is a market that doesn’t fit eBay or its’ smaller merchants.

Web-based retailers like Google and Amazon have found a way to brand itself as companies that provide the everyday products shoppers want. Google Express in major US cities and is expanding. It has partnered with large brick-and-mortar retailers like Toys-R-Us, Target, BestBuy, Wal-Green’s,and more to get items in the physical stores right to a customer’s front door.  A same-day courier like 1-800Courier is who retailers have also decided to outsource the delivery aspect of the service.  The New York Courier has the delivery expertise to create optimal and efficient solutions.

Another hurdle for eBay will be Amazon if it decides to jump back into the same-day delivery race.  Amazon has launched the free service in several major US cities, including Baltimore, Dallas-Fort Worth, Indianapolis, Philadelphia, Phoenix, San Diego, Seattle-Tacoma, Tampa Bay, Washington DC, Boston, New York, Atlanta, and in the San Francisco Bay Area.  The roll out involves more than 500 cities and towns, plus more cities in the coming years.  This means eBay will have even more ground to cover if it enters back into same-day delivery with eBay Now.  EBay will have to step back and reevaluate whether it can achieve convenience for its’ customers with new products, yet in a different way.

Reference:  7.27.15, www.cnet.com, Ben Fox Rubin, eBay Now rapid delivery service shut down

Moms Go Mobile, Using More Same-Day Delivery Via Diapers.com

Courier ServiceMoms everywhere are starting to see the benefits of using same-day delivery for all of those countless baby needs at home, especially diapers.  The main tool they are using to get it done: their cell phones.  Yes, mobile shopping is on the rise by parenthood moms per Mashable news.  Mashable recently reported how Diapers.com is experiencing e-retail growth, thanks in part to plenty of mommies.

At different times of the day, or early morning, Diapers.com talked about how Moms are placing their orders and using same-day delivery.  “Moms send us stories all the time of nursing her baby at 3 a.m., realizing she’s almost out of diapers or some other essential, placing an order with us through our app, and having the package show up at her door later that day,” said a Diapers.com senior vice president of marketing and business development Michal Geller.  “Same-day delivery is a game-changer for busy moms.”  Indeed it is, in addition to all of the roll-off baby products, such as wipes, formula, baby food, and clothes.

In 2014, Diapers.com experienced a 50% increase of purchases via a mobile device.  This was a 25% spike upward from the previous year.  The rest of mobile sales within a multi-trillion-dollar US market only hit 1% according to TechCrunch.  The article also stated that the diaper market itself is expected to reach $52 billion worldwide by 2017.  Therefore, Diapers.com is a frontrunner in the industry and is prepped for more growth in the coming years.

One of the retailer’s keys to its’ popularity is its’ mobile app.  It has been heavily invested in, created with moms in mind. The Diapers.com app is very user-friendly, designed for one-handed use.  Also, a customer’s shopping cart remains connected to his or her account throughout the browsing process, even when toggling between a laptop and a smartphone. Moms appear to be finding their best friend when diapers or other items get low at home.

At home and work is where shoppers are placing their orders from the most, instead of on the go.  “Many of our customers cite that they place orders on their Diapers.com app while rocking or nursing their baby,” Geller said.  Diapers.com has also found that while smartphone use is increasing, tablet use is declining. In the past year, the percentage of total orders have “decreased significantly” in spite of its’ mobile growth, Geller said.

He also stated, “The modern mom — I see it from my wife and from my wife’s friends — the phone has become such a useful tool to have at her side and in her pocket and in her hand.  We’re going to continue to see growth in that area. We absolutely believe that the phone is mom’s co-pilot to some degree. To the extent that we want to be her best friend, we see those things go hand in hand.”

With online retail expected to reach $500 billion by 2018, Diapers.com has more incentive to invest more into same-day delivery and other retailers do as well.

To capitalize on this booming baby market, retailers can partner with a same-day courier like 1-800 Courier to handle their deliveries.  The Houston Courier is flexible and can be there for moms when they need that sudden baby item.  A national footprint and a vast, reliable dispatch network is all 1-800 Courier needs to help moms, as well as e-retailers and brick-and-mortar stores to thrive online.

Reference:  7.8.15, www.mashable.com, Adrienne LaFrance, Mobile shopping’s early adopters: New moms

Postal Service Expands Same-Day Grocery Delivery in New York

same day deliveryThe US Postal Service has jumped outside of the normal delivery of piece mail into same-day grocery delivery, in hopes to generate more revenue and profitability.  Internet Retailer recently reported that the USPS will begin extending Customized Delivery, the name of its’ grocery delivery service, on June 29th or shortly after that.  Testing of the service began late last year in San Francisco, delivering on the behalf of AmazonFresh in 38 various zip codes in that area.

The mail company performed filing to the Postal Regulatory Commission regarding the new venture.  The article mentioned the filing did not state the USPS will be delivering AmazonFresh orders in New York.  Yet, AmazonFresh was launched in in Brooklyn and Manhattan late last year, in addition to AmazonFresh Philadelphia.  Amazon has been working with the Postal Service for years now, even with performing Sunday deliveries.  The report stated via logistics consulting firm MWPVL International states that from 16 US sorting centers, Amazon groups packages by zip code and send them to the USPS, which the USPS then delivers.  This bulk shipping cuts Amazon’s costs versus going with UPS or Fedex, and at the same time, increases USPS revenue.
It does make sense for the largest e-retailer to partner with essentially the largest US mail delivery company.  Amazon deliveries large totes to postal locations between 1:30-2:30am, which then are delivered by postal carriers between 3-7am. The USPS has the capability and capacity to handle large, volume deliveries with its’ robust vehicle fleet and physical locations to match.  This suits the Postal Service’s ambitions for revenue growth and sustainability.  Two companies simultaneously can meet key needs .

Amazon will gain from the partnership a delivery system to handle its volume and quest for the next level of free same-day delivery.  The retailer recently announced the implementation of free same-day delivery in 14 metropolitan cities the US.  Its Prime members that make a $35 purchase by noon, will receive their online order by 9pm that same day free.  More than 1 million items, such as games, cooking tools, books, household goods, and electronics will be available.  The initial launch rolled out in California cities in the Southland, yet will be expanding into the San Francisco Bay Area and other major cities, including Baltimore, Boston, Dallas-Fort Worth, Indianapolis, New York, Philadelphia, Phoenix, San Diego, Seattle-Tacoma, Tampa Bay, Washington DC, and Atlanta. 

The Postal Service had $5.5 billion in loses in 2014.  Its main challenge is its government obligation to cover health retirement benefits decades in advance, which resulted in several past defaulted government loans.  Therefore, innovation is the key and the USPS appears to be headed in the right direction, as many other companies are doing to keep pace with new business trends.  Same-day delivery is becoming a staple service that retailers won’t be able to do without in the coming years.  A same-day courier like 1-800courier is a viable option to partner with to implement on-demand delivery services fast.  The New York Courier has the expertise and size to deliver items for any retailer in Atlanta, as well as nationwide.


Reference:  www.internetretailer.com, 6.22.15, Allison Enright, The Postal Service will deliver groceries to New Yorkers

Deliv Makes Chicago Acquisition To Expand Same-Day Delivery

Courier ServiceThere has not been a more competitive time for same-day delivery than right now.  Retail giants Google and Amazon are continually growing.  Robust Wal-Mart has same-day service in multiple cities, also in Canada.  Brick-and-mortar retailers like Petco and Ace Hardware joined in the race to move product.  Crowdsource-based Uber is transitioning beyond picking up people, into picking up packages, testing same-day delivery is several cities also.

The race continues to evolve, especially with the recent move by Deliv, making a huge impact on the actual delivery side of the service.  Deliv has officially bought WeDeliver, as it pursues to be the largest same-day delivery provider in the US.  WeDeliver was a huge competitor in the Chicago market, and now, Deliver essentially captures a good portion of control of the area.  Chicago is one of several major US cities that e-retailers and store retailers are establishing last-mile delivery services.

One of the big drivers for the acquisition is no other than Amazon.  Ingrid Bekkers, Deliv VP of Marketing, stated in the article, “Two-day delivery for retailers has become the norm, but retailers are feeling the need to respond to Amazon and its same-day delivery option”.  Amazon has made huge implementations, including roll out of same-day delivery in numerous cities, especially since last year.  Recently, the retailer has launched free same-day delivery in California and is planning to expand it into San Francisco Bay Area, Baltimore, Boston, Dallas-Fort Worth, Indianapolis, New York, Philadelphia, Phoenix, San Diego, Seattle-Tacoma, Tampa Bay, Washington DC, and Atlanta.

Deliv’s presence is purposefully unseen, partnering with a number of malls and well-known retailers to perform deliveries for them.  Stores inside malls like FootLocker, utilize Deliv to offer shoppers a way to make their purchases online and have them delivered to their front door fast.  Macy’s is the most notable Deliv partnership thus far.  Beginning last year right before the holiday season, Macy’s aggressively launched same-day delivery in eight major US cities, including Los Angeles, San Francisco, San Jose, Houston, Chicago, Washington DC, New Jersey, and Seattle.  In addition, Bloomingdale’s launched the service in 4 of them:  San Francisco, Los Angeles, San Jose, and Chicago.

E-retailers, physical store retailers and local merchants are all seeing the growing opportunity to sell their products by obtaining the capability to offer a fast, convenient service option.  A nationwide courier like 1-800 Courier has established itself as a leader in same-day delivery also.  The Chicago Courier has partnered with hundreds of companies to provide superior same-day delivery.  Shoppers are more and more comfortable with shopping online, making buying things very easy.  Retailers need a courier like 1-800 Courier to assist in shifting into on-demand delivery.

Reference:  6.24.15, Al Urbanski, Same-Day Deliverer Expands in Chicago

USPS Has $1.5 billion loss, Same-Day Air Delivery Can Boost Revenue

Courier ServiceUS Postal Service has incurred consecutive years with billions in losses.  In 2012, it lost $15.9 billion.  In 2013, the USPS loss $740 million during the April-June period and $5.5 billion in 2014.  The US Postal Service has attempted new business strategies, service innovations and more to turn their ship around.  With their adjustments, the mail company was looking to have a sizable upswing in revenue this year, however, it’s not looking very favorable overall so far.

The US Postal Service has reported a $1.5 billion loss during first three months of this year.  The mail giant says that it has experienced positive results with more consumers utilizing its’ shipping and packaging services; however, the challenge has been its’ costs and declining product sales.  The shipping and package volume increased by 14.4 percent increase in shipping and package volume, which equated to 1.3 percent or $223 million in higher operating revenue.  However, during the period, the Postal Service sent 420 million fewer pieces of mail in comparison to the same period last year.  It’s First-class mail decreased by 2.1 percent, in addition to its’ standard mail numbers falling by 1.1 percent.

“Shipping and package services are a key business driver. However, operating margins in this business are lower than in mailing services,” said Joseph Corbett, the Postal Service’s chief financial officer.  He went on to say, “And, while we’re pleased to see a small increase in controllable income, to improve our margins, we’ll need to make investments in our network infrastructure and delivery vehicles.”  The article mentions how if the retiree health benefit prefunding expense obligation via the government was excluded, its’ net loss would have been only $44 million versus a $447 million loss during this time last year.

New product innovation may help the US Postal Service recover from other declining mail sales.  One viable option the USPS is to begin offering a same-day delivery service to customers that need their packages delivered fast.  A courier service company like 1-800Courier can offer a time-sensitive shipping method for this market of consumers.

Couriers also consolidate packages which results in competitive pricing for same-day air as well.  The US Postal Service and other delivery companies seeking more product lines can easily count on 1-800Couier!

Reference:  5.8.15, The Daily Astorian, US Postal Service reports $1.5 billion loss

FAA Approves Amazon Drones For Same-Day Delivery

Same Day DeliveryIt may seem far-fetched to use flying drones to deliver online purchases to your front door. However, Amazon is pursuing to make it a reality. Same-day delivery has become a viable option for online retail growth and all types of retailers are abroad, even Ace Hardware is testing the service. Drone use is another way that Amazon has tested and finds it fits their business model. A new announcement by Amazon shows it is another step closer to the floration of drone delivery.

Bloomberg News recently reported that Amazon has received approval by the Federal Aviation Administration (FAA) for launching its’ same-day delivery drone program. The FAA has given the retailer a waiver allowing flights as fast as 100 mph and 400 feet off the ground, according to a letter posted on Amazon’s site. Amazon vice president Paul Misener spoke to Congress, stating that an earlier FAA approval for using drones applied to an earlier drone model no longer used. Therefore, it isn’t beneficial for new drone implementation. With the new approval, Amazon appears to have high hopes that same-day delivery drones will be flying soon.

Last year, Amazon CEO Jeff Bezos made it known on 60 Minutes that the retailer had plans to launch Prime Air via “octocopters” or same-day delivery drones. Shoppers would receive their online items within thirty minutes or less. 86% of Amazon’s orders are small package items and actually meet the drone delivery criteria. It makes sense for Amazon to be so adiment about implementing same-day drones. With the enormous amount of distribution centers the retailer has across the US, the drones will bridge the distance gap like no other online retailer is doing thus far. It would indeed be revolutionary, as more than likely, other retailers will follow.

The FAA approval appears to not have come at a more pivotal time. Amazon strategically launched same-day delivery in several major US cities right before the holiday season last year, including New York City, Washington DC, Philadelphia, Dallas, Indianapolis, and Atlanta. In addition, the service was released in Miami and Baltimore in March. There will probably be more same-day delivery in other US cities to come this year. Amazon could be headed towards these same cities being the first for drone use.

Amazon’s Prime members already have Prime Now, the e-retailer’s one-hour delivery service, at their disposal. Prime Now one-hour delivery is $7.99 and two-hour delivery is free, although Prime Air is set to be much faster. Members have tens of thousands of products they can buy online, from household items to electronics. Most of these are small items also, which will meet the drone carrying requirements.

A number of retailers won’t be able to deliver via drones due to costs; however, they can partner with a same-day courier like 1-800Courier to compete online and also for easy implementation in major US cities. The New York courier has a nationwide footprint and can create logistical same-day solutions as well. Either way, most retailers are going to need same-day delivery to meet today’s online demand.

Reference: 4.10.15, Internet Retailer, Bloomberg News, Amazon’s delivery drone test plan gets new OK from FAA

Ace Hardware Says Tools Have Same-Day Delivery Too

Same Day DeliveryWhen we see online products being delivered the same day, we normally aren’t thinking about tools.  However, Ace Hardware wants people to now think differently.  Ace now says that tools can have same-day delivery too.

The Chicago Tribune has reported that Tool retail leader Ace Hardware is rolling out a testing program for same-day delivery in 33 of its’ 4,400 stores nationwide.  These select stores are found in Arizona, Colorado, Illinois, Maryland, Texas and Florida.  There is also one hardware store in Chicago that will be a part of the pilot same-day delivery launch also.  It appears that these pilot stores are just a start for Ace.  There will be more same-day service stores to come.

Your latest Dewalt power drill or Craftsman tool kit are now just a few of the unexpected retail item that we can now get delivered within hours.  Another retailer, pet food company Petco, falls into the same category.  Like Ace, Petco launched testing of same-day delivery in San Francisco and Boston.  Instacart is Petco’s delivery partner, set to pick up and deliver dog food, birdhouses, kitty litter and other well-known items for pet care.  For cost savings and delivery efficiency, most same-day retailers partner with a same-day courier like 1-800 Courier to perform the deliveries.  Currently, Ace store associates will perform the deliveries; however, as the same-day delivery program expands, Ace may very well follow suit.

For online orders placed by 1pm, customers can use Ace’s Express delivery service available within 5 miles of any of its’ participating testing stores.  Same-day delivery will be only an additional $5 fee to a customer’s order.  The pricing falls in line with most same-day pricing.  For example, Petco’s service fee as fast as within an hour, costs between $3.99 and $5.99.  Department store chain Macy’s launched the service in 8 major US cities, including San Francisco, Los Angeles, San Jose, Seattle, Houston, Chicago, Washington DC, and New Jersey.  It’s service is priced at a flat fee of $5 for orders over $99.  Shoppers with smaller orders pay standard shipping rates, plus the flat rate.

Even Wal-Mart offers same-day delivery in multiple US cities.  Walmart To Go costs $10, regardless of the order size and in some parts of Canada the service is free, competing with Amazon there.  Good low pricing is attractive to online shoppers that are use to getting deals.  Like Wal-Mart, Ace Hardware have the advantage of brick-and-mortar store locations have enough locally-sourced products for low pricing to work.  This is exactly the outfit for malls, which in the Chicago Tribune, Woodfield Mall and Water Tower Place were examples that started offering on-demand car service last year.  Customers can make their purchases at the store, and have their items delivered home as they continue shopping or movie watching.

Ace’s new program began January 26th and is an extension of the tool company’s online order and pick up in store service currently available at 1,600 Ace stores.  The creation of omnichannels is what retailers are after, as online businesses can be more of a strength and help balance local store sales.  Online retail is forecasted to increase to $500 billion by 2018, therefore, this is the right move for Ace.  Other retailers in a wide range of industries are all setting up ways to make overall shopping convenient.  1-800 Courier is a Chicago courier that can help Ace Hardware and other physical store retailers optimize on same-day delivery as e-commerce grows.

Reference:  2.17.15, Chicago Tribune, Alexia Elejalde-Ruiz, Ace Hardware tests same-day delivery near some stores

EBay Expands EBay Local Pilot Delivery Program In Brooklyn

Courier ServiceThe race for same-day delivery became intense this year, as Google, Amazon, Wal-Mart, and Macy’s led the way with a number of moves to position themselves to master the service.  On the other hand, EBay recently decided to rethink its’ service, pulling eBay Now as a standalone app and integrating it into its’ main website.  It appears eBay was hanging up the gloves with same-day delivery, but think again.

EBay announced that it will be expanding its’ eBay Local pilot program in Brooklyn with an additional 80 small businesses that will offer scheduled and same-day delivery.  It also will provide in-store pickup to area customers.  It’s now clear that eBay Now is still functioning under eBay Local.  The e-retailer had released plans to expand eBay Now into 25 different markets, partnering with UK-based delivery start-up Shutl to get it done.  However, per an eBay spokersperson, the company is “moving to core” and the new eBay Local expansion could be signs of starting from the ground floor again to find what is sustainable long-term.

Tech Crunch discussed in the article how eBay Local is essentially the re-branding of eBay Now, yet it offers pickup options for shoppers as well.  EBay Local is being offered in limited US markets, including Brooklyn, Queens, San Francisco and parts of the Peninsula, San Jose, Chicago, and Dallas.  It also has local programs in Germany, UK and Australia.  There is a shift with eBay focusing in on smaller sellers who have customers that prefer online store pick up.  This is what Shutl’s “click and collect” delivery model is based from.  Shutl also uses a same-day courier like 1-800 Courier to perform the deliveries for them.

In a post regarding the new Brooklyn expansion, senior director of eBay’s Local initiatives Tom Allason, mentions briefly about offering the options customers want.  “We find that our customers like having choice, based on when they need the item and how much they want to pay to get it”, stated Allason.  Even if eBay expanded into the 25 markets it had planned, it could not succeed without the order volume, which is one of the key components for same-day delivery to work.

Online store pick up is a viable direction to go in, as mobile commerce continues growth.  Recent numbers from Black Friday and Cyber Monday show that shoppers are becoming more comfortable shopping on-the-go.  It was found that 37% of e-retail transactions from Black Friday through Cyber Monday were made from a smartphone or tablet.  It means that it would be quite easy for a customer to buy online and make a store pick up, opposed to having to wait in line.  It is a service that makes sense, and it could be why eBay is showing a more extensive interest in offering it.

Costs will always be the bottom line for same-day delivery.  EBay Now was being offered for a $5 fee.  Macy’s, newcomer to the same-day delivery bout, is currently charging only $5 for all orders over $99.  Wal-Mart, Google and Amazon have comparable pricing also.  Since a number of retailers need a delivery partner, 1-800 Courier is a New York courier that has courier logistics expertise and can create a same-day solution that is cost-effective.

Reference:  12.16.14, www.techcrunch.com, Sarah Perez, Ebay Expands Local Pilot Program Offering Same-Day Delivery, In-store Pickup In Brooklyn