Automakers have not just sat back and watched Amazon utilize Same-Day Delivery for growth.  Toyota, BMW and Fiat Chrysler have all jumped into same-day delivery and seeing all of the benefits operationally the higher level of service it brings with it.

Customers know when they are getting the best from dealerships and same-day part deliveries is proving to be the revolutionary component that will optimize service repairs for car manufacturers in the years to come.  This past August, Toyota rolled out same-day parts availability to its’ dealerships to meet real time demand for repairs.  Faster part deliveries equated to quicker turnaround times from mechanics and better efficiency.  Repair times is the dealership service area with the largest number of customer complaints.  The better the service times a dealership provides, the better overall customer service reviews.

Auto News discussed in an article how although some manufacturers like Toyota are embracing same-day services’ short and long-term potential, some don’t feel the same way.  German automaker Volkswagen is still not convinced that same-day delivery will benefit their business model.  Anu Goel, Vice President of Parts and Logistics at Volkswagen Group of America, stated in the article, “If you’ve got dealers stocking the right parts in the first place, why do you need same-day service?”

Goel has a different philosophy for getting parts fast.  His perspective is to simply ship parts faster and dealers to change what they are stocking.  His solution is the part inventory itself will create a higher operational efficiency.  To minimize costs, same-day delivery must have close-proximity warehousing; in respect to Volkswagen current seven distribution centers, the auto manufacturer would essentially have to add more of them in order for same-day delivery to work.  Volkswagen does offer next-day part delivery and it appears to be what it presently needs. According to Goel, “We are good for now.  With a 1 p.m.cutoff [for parts orders], we can make 7 a.m. to 8 a.m. delivery the next day.  Seven buildings around the country allow us to meet that commitment.”

Toyota has been involved in part same-day delivery longer than BMW and Fiat-Chrysler have.  However, they both appear to be making headway with their respective implementations.  A Same-Day Courier like 1-800 Courier can partner with an auto manufacturer and pick up parts from distribution centers and local dealerships.  The Seattle Courier can perform part exchanges between dealerships, which is another same-day solution that it has developed.  Part distribution services is another same-day solution having the courier pick up all parts from a single location and distribute them to multiple dealerships in a given radius.

Car manufacturers like BMW and Fait Chrysler US being on board with same-day part deliveries, shows that it indeed is workable and at least worth testing.  Either way, same-day delivery is shifting how we do business, establishing a level of speed and convenience that shows no signs of turning back.  More and more businesses, retailers, shoppers, and automakers will all continue to make strides toward seeing how they can generate sales and improve processes with the innovation of same-day services.

Reference: 11.21.16, www.autonews.com, Jim Henry, VW’s Goel: Same-day delivery? Not yet

Amazon 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, www.internetretailer.com, Don Davis, Amazon reports 28% North American sales growth in Q2

Online 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, www.internetretailer.com, April Berthene, 56% of online retail searches take place on mobile devices

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

It’s a race to the finish for e-retail, as Google competes with Amazon to see which company can efficiently expand same-day delivery nationwide.  At first it was your general online products that both retailers were delivering, but now same-day grocery appears to be the new, simultaneous pursuit.

Google hasn’t been in the running for fresh food same-day grocery until this week and has announced that it will be testing it later this year.  This will be a first for Google Express, delivering foods like fruits and vegetables.  The service will begin testing in will be the San Francisco Bay Area, which has been the common trial site for a number of web-based and physical store retailers.  It will be partnering with large grocery store chains like Whole Foods and Costco.

In other cities, like Atlanta, Whole Foods utilizes a Same-Day Courier to deliver foods bags and volume orders to businesses for a variety of in-house events.  These are big grocery stores that have the volume, and all they need is the demand to match, which Google will provide.  Wal-Mart offers same-day delivery in several US cities, including free same-day service in Canada to aggressively maintain a level of market share against Amazon Canada.  Since the retail leader is performing last-mile deliveries for its’ products, same-day grocery delivery makes sense, especially with its’ neighborhood market stores.

The idea is for a retailer to be close enough to shoppers physically, as they are online–being in arms’ reach of a customer’s door step and have the ability to respond when they place their order.  Google gains the reach to customers that it needs with its’ partners for grocery delivery.  It doesn’t have the physical store locations, however, Whole Foods and Costco does.  The short radius to deliver food items is even more critical than general household goods, electronics, and clothes.  Food has to be delivered within a few hours for it to be worth it to a hungry customer.

Google’s reason for deeper expansion into same-day grocery delivery is simple–AmazonFresh.  Amazon’s same-day grocery delivery service that is available in Seattle, Los Angeles and others, which more than likely will expand even more.  Free same-day service is now in Seattle and California.  More cities are set to be added, such as San Francisco Bay Area, Baltimore, Boston, Dallas-Fort Worth, Indianapolis, Phoenix, Philadelphia,  San Diego, Tampa Bay, Washington DC, New York, and Atlanta.

Retailers are moving same-day delivery into being a part of everyday consumer living.  Any online business seeking to compete will probably have to engage in some level of last-mile delivery in the future.  1-800 Courier is a Seattle Courier that retailers can partner with to implement a same-day program that will last, even for groceries.

Reference:  8.18.15,www.cnet.com, Richard Nieva, Google to test same-day grocery delivery service

A number of companies have a lot riding on all of their same-day delivery efforts.  It does show that no matter how big you are, the cost to implement the service on a mass scale, and be profitable, comes at a hefty price.

The Huffington Post spotlighted Amazon in an article regarding its’ same-day delivery growth.  Amazon has experienced a huge spike in shoppers utilizing the service this holiday season, and it is rightly so concerning all of the investment and expansion the web-based retailer did months prior.  The holiday sales figures are paying off, as in one of its’ latest press releases, Amazon announced it had 10 times more items shipped via same-day delivery than last year for the holidays.

There were 8 more major US cities that Amazon added to its’ mix of same-day delivery programs, including Atlanta.  It went without question that clearly the 50 strategic distribution centers for order fulfillment aren’t enough.  Same-day delivery is becoming a strong staple for Amazon to get those last-mile deliveries performed from their warehouses.  E-commerce is expected to increase close to $500 billion in 2018 also.  However, amid all the growth, will the delivery driver gain from all of the frenzy and grow also.

It’s hard to comprehend that Amazon could ever yield any massive loss, but it did this year.  Amazon had a net loss of $437 million in the third quarter of this year, so the high holiday numbers certainly brought the retailer some good cheer.  However, Huffington spotlighted a case where everyone involved in same-day delivery doesn’t win; the one that that may be lossing out is the driver.  “It’s like they want us to be employees, but they don’t want to pay for it,” Myron Ballard said, driver for Amazon delivery partner LaserShip.

Below is a quote from Huffington about Ballard’s experience being a same-day delivery driver.  “Ballard had to purchase the cargo van he drives for work. He doesn’t get reimbursed for the wear and tear he puts on it; for the gasoline he pours into it on a near-daily basis; for the auto insurance he needs to carry; or for the parking tickets he inevitably racks up downtown. He doesn’t even get reimbursed for the LaserShip uniform he’s obliged to purchase and wear”.  It really brings exposure to the importance of making the independent contractor satisfied, not just the shopper with low prices for same-day delivery to not implode.

This is merely an example of how drivers can’t get lost in the same-day delivery pursuit, or they’ll get lost in the shuffle.  Same-day delivery will continue to break the mold and flourish, as physical retailers implement the service in hopes to downsize their physical store costs.  If shoppers are at home, retailers are making the investment to get their products to them instead.  A same-day courier like 1-800 Courierhas a national footprint and the courier expertise to assist e-retailers and brick-and-mortar stores thrive with last-mile deliveries.  The Seattle courier can create a same-day delivery solution fixated on profiting the shopper and its’ drivers as well.

Reference:  12.26.14, Huffington Post, Alexander C. Kaufman, Amazon’s Enormous Same-Day Delivery Growth Comes At A Price