Tag Archives: Chicago Courier

With Distribution Challenges, Neiman Marcus Quarter Sales Down

Taking a look at their distribution system, Neiman Marcus observed areas of development that it could improve on.  The retailer implemented a new cross-channel merchandising system, which costs Neiman Marcus up to $35 million during its fiscal first quarter.  According to a new article, the investment resulted in overall losses due to inventory issues and order fulfillment.

Internet Retailer reported how their retailers has had first fiscal quarter losses for 2017 due to facing distribution problems.  Neiman Marcus stated, “These issues primarily related to the processing of inventory receipts at our distribution centers, the transfers of inventories to our stores and the presentation of inventories on our websites.  These issues prevented us from fulfilling certain customer demand in both our stores and websites that we estimate resulted in approximately $30 to $35 million of unrealized revenue.”

Since this fiscal quarter occurs during the holiday season, Neiman Marcus’ challenges have impacted sales revenue online.  Neiman Marcus reported online sales accounted for 29.2% of overall sales in the first quarter, which ended October 29th, at $315.1 million.  This figure is down from $315.7 million from the previous year.  In a filing with the U.S. Securities and Exchange Commission, Neiman Marcus revealed problems that related to the implementation of NMG One, its new cross-channel merchandising and distribution system.  It resulted in a negative impact on online and offline sales.  More specific numbers mentioned in the report were Neiman Marcus’ earnings, which  included:

  • A year-over-year total comparable sales decline of 8.0%, compared to a 5.6% decline last year.
  • Net revenue of $1.079 billion, down 7.4% from $1.165 billion.
  • A net loss of $23.5 million, compared to a net loss of $10.5 million.

Companies like Amazon not only have sophisticated distribution systems, but also have coupled it with Same-Day Delivery to literally meet online shoppers right where they are.  Amazon has engaged same-day delivery into its’ supply chain, even offering it free in 27 major US markets.  Amazon Prime is in San Francisco, Los Angeles, Dallas, Boston, Orlando, Chicago, Raleigh, New York, Atlanta, Tampa, and more. Optimal distribution system inefficiencies has been the key foundation for Amazon, yet the company is still only an e-retailer providing same-day delivery.  Retailers like Neiman Marcus can partner with a Chicago Courier like 1-800 Courier and fulfill online orders directly from their stores.

Same-day delivery is revolutionizing the way we ship to the end customer.  Nordstrom’s,Best Buy, PetSmart, Toys-R-Us, and others have all implemented some level of same-day delivery, using their store locations as close proximity warehousing, using them to carry inventory.  Macy’s is fulfilling online orders with same-day delivery in cities like San Francisco, Los Angeles, Seattle, Houston, Chicago, New Jersey, Washington DC, and more.  With over 880 store locations, the department store leader has shifted with e-commerce trends and distribution centers have the added supply chain to deliver items to customer’s front door.  Neiman Marcus can use Nationwide Courier to develop a same-day logistics solution to create the omnichannels to help strengthen its’ distribution system.

Reference:  12.15.16, www.internetretailer, Matt Lindern, Distribution problems cost Neiman Marcus during its first quarter

Carriers Announce Shipping Deadlines, Same-Day Delivery Is Another Option

When the time comes for Same-Day Delivery to impact the carrier industry, it will. Yet for now, it is only fully moving and expanding within the retail industry.  It is what companies like Amazon, Google, BestBuy, and more have all embraced, making it a viable shipping option during this holiday shopping season.  Either way, carriers are not getting their shipping time frames to be performed as fast as same-day delivery primarily.  Their focus for the holiday season is to ensure that they are accurate on and before Christmas.

The USPS, FedEx and UPS have all announced their respective shipping deadlines for retailers and shoppers to get their packages delivered by the biggest holiday of the year.  Yahoo recently talked about how FedEx, UPS and others have all made public their shipping deadlines in order for shoppers to know the shipping options that are at their disposal.  With only two weeks before Christmas, consumers are likely to prepare now and place their orders so their holiday gifts can arrive on time.  For Christmas, Hanukkah and Kwanzaa, shoppers are going to be buying and shipping more than in 2015.

The article mentioned how the carrier package forecasts confirms the growth in retail will result in an increase in packages shipped this year.  FedEx expects to ship 25 million packages on peak days during the holiday season.  UPS predicts it will deliver over 700 million packages between Black Friday and New Year’s Eve, which is 14% growth from 2015.  Also, the US Postal Service expects to deliver 750 million packages this holiday season, resulting in a 12% spike up from 2015 and the carrier has guaranteed domestic deliveries by Christmas.

FedEx, UPS and the USPS shipping deadline dates are below:

Dec. 16 — Last day to ship FedEx Ground and FedEx Home Delivery
Dec. 19 — Last day to ship FedEx Express Saver
Dec. 21 — Last day to ship FedEx 2Day A.M and FedEx 2Day
Dec. 22 — Last day to ship FedEx Standard Overnight, FedEx Priority Overnight, and FedEx First Overnight.
Dec. 23 — FedEx Same-Day City
Dec. 25 — FedEx Same-Day and FedEx Same-Day City
Also, FedEx First Overnight, FedEx Priority Overnight, and FedEx 2Day will make deliveries on December 24th.  A $16 Saturday delivery fee will apply per package.

Dec. 19 — Last day to ship via UPS 3 Day Select to be delivered before Christmas Day (delivery on Friday, Dec. 23).
Dec. 21 — This is the last day to ship all UPS 2nd Day Air packages to be delivered before Christmas Day (delivery on Friday, Dec. 23).
Dec. 22 — Last day to ship all UPS Next Day Air packages to be delivered on Friday
Dec. 23 — This is the last day to ship all UPS 2nd Day Air packages to be delivered before Christmas Day, which must use the Saturday delivery option for delivery on Saturday, Dec. 24

Dec. 15 – Last day for USPS Retail Ground. Ground service for less-than-urgent deliveries and oversized packages.
Dec. 20 – First-Class Mail. Service for standard-sized, single-piece envelopes and small packages weighing up to 13 ounces with delivery in 3 business days or less.
Dec. 21 – Priority Mail. Domestic service in 1, 2 or 3 business days based on where the package is mailed and where it’s being sent, variety of flat-rate options.
Dec. 23 – Priority Mail Express. Fastest domestic service, guaranteed overnight scheduled delivery to most locations.  Some restrictions and exceptions apply.

FedEx does have it’s Same-Day and Fed-Ex Same-Day City according to their deadline dates will be operating.  It shows that carriers are slowly creating a competency for same-day delivery.  However, if retailers and shoppers are looking for a delivery source where fast delivery is their expertise, a viable option is a Same-Day Courier like 1-800 Courier to get their holiday packages delivered fast.  The Chicago Courier has just the right solutions for the holidays to get in-store and online orders delivered by Christmas.

Reference: 12.5.16, Yahoo Finance, Brittany Jones-Cooper, Holiday shipping deadlines for UPS, FedEx and major retailers

UPS Invests In Deliv To Study Same-Day Delivery

UPS TruckThe 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

Overstock 4th Quarter Sales Low, But Same-Day Delivery Can Create Growth

online shoppingIt takes a lot for online companies to remain steady and have revenue success with their business model.  Overstock.com has been just like other big e-retailers, seeking after capturing more market share, not to mention competing with the likes of Amazon.  The numbers show that Overstock didn’t have quite the big year it desired, yet it still did grow.

Overstock.com grew revenue last year, being at an increase of 10.7%.  This equated to of $1.66 billion, up from $1.50 billion in 2014. However, sales growth was slower during the fourth quarter, going up by only 2.1%, a difference of $480.3 million from $470.4 million the prior year.  This is found to be interesting being that the fourth quarter is the highlight for retail sales, especially to make up for any quarter losses in the prior quarters of the year.  Overstock could have been looking to have generated more revenue between Black Friday and Christmas.

What could be at the source of the low revenue was due to Overstock’s increasing popularity of its’ multi-tiered Club O loyalty program.  The article stated that per the e-retailer’s filing with the U.S. Securities and Exchange Commission, it changed Club O into a two-tiered system, silver and gold, that allows shoppers to earn rewards instead of coupons, which may have hurt Overstock’s short-term numbers.  A key figure was that the company’s gross profit in the fourth quarter went down 2.7%, equating $83.1 million, which is down from $85.4 million in 2014.

Overstock.com did comment in the article regarding the impact of its’ shift from coupons to a rewards system for its’ customers.  Overstock stated, “We believe that the shift from coupons to rewards will benefit us in the long term, but we have experienced some difficulties with the transition, and in the short term we believe it slowed our revenue growth as customers take time to become accustomed to this change.  We are continuing to test and refine our approach in this transition.”

Also during last year’s fourth quarter, Overstock.com’s partner revenue went up to $446.7 million.  This was a 4.4% jump from $427.8 million the year prior.  Partner revenue involved Overstock orders that were fulfilled by other retailers that sell through its’ website.  Many companies are finding that what can boost sales is the offer Same-Day Delivery as an option for shoppers to get their online items faster.  Retail leaders like Amazon, Google, Macy’s, and more all have the perspective that to grow in today’s market, the delivery aspect of online retail is becoming just as vital as the actual customer purchase itself.

With online shopping is expected to reach to $500 billion by 2018, companies like Overstock.com which will result in more and more companies seeking after delivery companies that have the technology to literally get customers online items where they are.  1-800 Courier is a Chicago Courier that is a viable option for any retailer to partner with for optimal same-day solutions.  The Same-Day Courier uses the latest in courier technology to help companies deliver nationwide, from in-store pick ups to fulfilling orders online.

Reference: 2.10.16, www.internetretailer.com, Matt Lindner, Overstock.com’s sales grow 2.1% in Q4, 10.7% for the year

Technology Driving Same-Day Delivery for Online Retail

courier serviceNo one is taking lightly the innovation that technology has brought to online retail.  The advances have amounted to shoppers having instant access to what retailers are offering, and to meet the rising demand to get items into their hands fast, Same-Day Delivery is being coupled with technology to make it happen.  Various apps are now being incorporated by delivery companies that are performing the transportation piece of online order fulfillment, such as Uber’s application programming interface (API) into its’ app in order to provide last-mile deliveries.

It has been reported by Multichannel Merchant that Uber is looking to expand its’ current UberRUSH program for retailers, which is its’ model of same-day delivery.  Uber was initially set up for picking up and transporting people, yet now the delivery company has extended its’ services to delivering online products.  A crowdsourcing approach allows everyday people to be drivers, stationed nationwide to do delivers for its’ retail partners.  This cannot be effective without the technology of Uber’s API system.  Uber’s app is used by several retail and delivery partners, which include T-Mobile, 1-800-Flowers, Nordstrom, Rent the Runway and Google Express.

Curbside is another company that has added the UberRUSH option via the API.  Company co-founder and CEO Jaron Waldman mentioned in the report that it was a logical extension of Curbside’s bread-and-butter offering, giving retailers more options for fast delivery.  For example, someone could order an item for pickup from Curbside, change their mind for whatever reason and have it delivered via Uber.

Waldman talked more about same-day delivery further stating, “This was driven by interest from our retail partners, one in particular who was very focused on Uber.  With the growing interest in same-day delivery for retail, integrating the UberRUSH API into our core offering is a seamless way to hook into a fantastic same-day offering for consumers. If you save 10 minutes for customers by extending our store pickup option in this way, it’s pretty powerful.”  Some Curbside clients include Target, Best Buy, CVS and Walgreens.

Uber also talked what delivery providers have found a niche in adding value and saving on transportation costs for retailers and businesses.  Uber stated in a blog post, “We’re excited about how (UberRUSH) supports local businesses, but we also know that a lot of companies – and their customers – are looking for an easy way to get items delivered more quickly.  Many companies rely on automated operations, have complex logistics networks or are in need of a more flexible solution that can fit their business and customers’ needs.”  Every delivery company, such as a Same-Day Courier like 1-800 Courier, is able to use technology to streamline supply chains and connect omnichannels for retailers to fulfilling online orders.

Technology will be driver for the forecasted online retail growth to come.  Online shopping is expected to reach to $500 billion by 2018, which will result in more and more companies seeking after delivery companies that have the technology to literally get customers online items where they are.  1-800 Courier is a Chicago Courier that is a viable option for any retailer to partner with for optimal same-day solutions.  The courier uses the latest in courier technology to help companies deliver nationwide.

Reference: 3.2.16, Multichannel Merchant, Mike O’Brien, UberRUSH Gains Retail Partners with New Same-Day Delivery API

Amazon Launches Free Same-Day Service In Chicago and Orlando

Courier ServiceOther retailers are doing same-day delivery one way, when Amazon appears to be doing it another.  The company is doing something that hasn’t been heard of with the popular service, but with all of its’ expansion, there’s reason to believe that it just may work–for free.

The Chicago Tribune has reported that the retailer has now launched free same-day delivery in Chicago and Orlando.  This is another phase of Amazon’s all-out plan to implement the service free nationwide.  The service being made free began in some California cities, which included 14 Los Angeles metropolitan cities earlier this year.  The additional two cities now makes the service available in 16 markets.

The service is free for Prime members for all orders over $35.  Although the online Prime catalog has 20 million items to choose from, free same-day delivery there will have over 1 million items available.  The vast amount of things to shop for includes everything from tech gadgets, household goods, and more.  Online orders that are placed by noon, will be delivered by 9pm the same day.  All items placed after noon, will be delivered the next day.  This gives shoppers the fast service options they are looking for.

In the Chicago area, free same-day delivery will extend north to Evanston and Arlington Heights, south to Oak Lawn and west to Glen Ellyn and Downers Grove, a spokeswoman said in the article.  The launch of the service was preceded by Prime Now this past summer, being available in select Chicago zip codes.  Although the service has been rolled out in Orlando as of Wednesday, the coverage area there was not mentioned.

Amazon’s other major cities where same-day delivery is offered may become free also.  The retailer’s same-day delivery program is currently in the San Francisco Bay Area, San Diego, Dallas-Fort Worth, Indianapolis, Boston, Baltimore, New York, Philadelphia, Phoenix, Washington DC, Atlanta, Tampa Bay, and in its’ hometown of Seattle.  This could mean a strong ramp up of free delivery implemented in these cities before the holiday season begins.  Other retailers are partnering with a Same-Day Courier like 1-800 Courier to get their same-day service going.  The Orlando Courier can service nationwide for the most robust retailers in the market.

Macy’s is an example of a retailer that partnered with Deliv and implemented an aggressive pursuit to offer same-day delivery.  It does believe in the importance of the service, aiding Macy’s in becoming an effective omnichannel retailer.  With roughly 885 stores nationwide and great volume, Macy’s may have the capability of offering the service for free in the future also.  It’s stores can acting warehouses for online order fulfillment.  It also have same-day delivery in just as many markets as Amazon.

The climb is being made steeper for web-based and physical store retailers with Amazon’s free same-day delivery service.  Pricing for the delivery fee by most retailers for the service is around $5.  Regardless, it will require a substantial amount of delivery expertise to not only launch same-day delivery, but also the economies of scale in order to make it last.

Reference: 10.21.15, www.chicagotribune.com, Meg Graham, Amazon brings free same-day delivery to Chicago

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

EBay Shifts From Same-Day Delivery To In-Store Pick Up

same day deliveryAt first it was an issue of rethinking same-day delivery for eBay.  In December of last year, eBay made a move to officially pull eBay Now from the app store.  The e-retailer appeared to shift toward integration of the stand alone app into its’ main mobile app and website instead.  The app allowed mobile shoppers to buy from local retailers and have their online items delivered for $5 the same day.  However, recent moves communicate much more, even if eBay has turned away from same-day delivery toward a focus on store pick up.

A recent report by Yahoo Finance discussed how eBay may not be interested in same-day delivery.  EBay has signed a deal with Woolworths in Australia, giving eBay shoppers the convenience of making online purchases on its’ site and then pick up from Woolworths stores.  The e-retailer also has previously partnered with Argos in the UK to do the same thing.  Online retail is projected to increase to $500 billion by 2018, and in-store pick up will have a lot to do with these figures.  Wal-Mart and Macy’s are just two of the many big name retailers offering in-store pick up, pushing to meet shopper demand.

The article mentions how eBay feels in-store pick up meets the demand of not only customer convenience and speed, but also no shipping costs.  EBay feels customers will opt for faster delivery without paying for shipping.  A Harris Interactive survey of 2,241 US adults showed that 70% of consumers don’t want to pay additional charges for overnight or same-day delivery.  This means if given the choice to not pay for shipping, customers will opt to order online and simply pick up their items from their local store.

EBay also sees this model as being beneficial for returning defective items directly to a physical store versus shipping it back to them.  This minimizes the wait time for customers to get their purchase in their hands.  A same-day courier like 1-800 Courier is a viable option for shoppers that simply don’t have the time to return the damaged items to the store and bring the corrective items back.  The Chicago courier has a national footprint for same-day delivery and can perform last-mile deliveries for customers, as well as retailers like eBay.

In spite of eBay’s potential change in business strategy, other web-retailer leaders are still all in with same-day delivery. Amazon has a multitude of investments into the same-day delivery, including more than 50 fulfillment centers nationwide, expansion of the service into 8 major US cities before the holiday season last year, the opening of its’ very first physical store location in Manhattan, and the launching of bike service there as well.  The physical store location is primarily for online customer store pick ups, but also for last-mile deliveries.

Google offers Google Express with same-day or overnight delivery, competing with Amazon.  Consumers can place orders online for goods from retail stores like Walgreens, BestBuy, Toy-R-Us, and Staples, then Google Express vehicle delivers the items same-day or next-day to its’ customer’s front door.  As eBay makes it adjustments, there will be more online retailers making changes of their own to keep shoppers coming back for more.

Reference:  3.9.15, Yahoo Finance, Patricia Garner, Why eBay is not interested in same-day delivery

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

Amazon Expands Again, Same-Day Shipping In Canada

AmazonIt wasn’t but a few weeks ago that Amazon touted about it’s new physical location in Manhattan to assist customers with online orders and to also house a limited amount of inventory to satisfy same-day delivery.  Now, Amazon expands again, yet this time it is just across the border.

Canada’s The Globe and Mail recently reported that Amazon expanded again, announcing its’ launch of same-day shipping in Vancouver and Toronto.  Amazon.ca is establishing the premium service in efforts to compete against Wal-Mart Canada’s free same-day service in Greater Toronto.  Within the last two years, Amazon has added more products, categories and services also.  The new roll-out comes right before doors literally begin to open for the upcoming holiday shopping season.

Kaan Yigit, president of Solutions Research Group, weighed in with input on Amazon’s expansion of same-day delivery in Canada, touching on what it could do for Amazon there.  He stated the new Amazon service could increase volume and order frequency, as Wal-Mart’s service is helping it “start gaining on Amazon…” added Yigit.  Wal-Mart has quietly jumped into same-day delivery and has a number of major US cities in which it offers the service.  With its’ large source of retail locations to act as distribution points, it makes sense for the robust retailer to join in.  Wal-Mart is even offering same-day service for free there, which could be alluding to it toying with this idea in other cities as well.

Amazon wants to stay ahead of the pack and which is probably the reason for so much expansion.  Amazon just added 7 more major US cities into its’ same-day delivery program, consisting of New York City, Baltimore, Dallas, Indianapolis, Washington DC, Philadelphia, Dallas, and Atlanta.  The web-based retailer has multiple distribution centers strategically throughout the US to fulfill online orders, making same-day delivery nationwide for company attainable.  To help the service, Founder and CEO Jeff Bezos even shared last year Amazon’s pursuit of implementing same-day delivery drones.

“It’s all about convenience,” stated Alexandre Gagnon, country manager for Amazon.ca, in a telephone interview from Seattle in regards to Amazon’s expansion of same-day delivery.  “We know that people who shop online at times may want the items faster.”  The same-day service will allow customers that place their orders by noon to receive their packages before 9pm the same day, seven days a week.  The article stated that Amazon will offer one million “eligible” items in Toronto and “hundreds of thousands” in Vancouver, including toys, video games, electronics and household necessities.

Canada Post’s research in 2012 showed 10 to 15 percent of online shoppers said that they would use same-day shipping for some items, said Post General Manager Rod Hart.  In Canada and in the US, there is indeed a market for the service. A same-day courier like 1-800 Courier can assist any retailer roll out a fast delivery program.  Same-day delivery is here to stay and big retailers know it.  As the the holiday shopping season begins, the Chicago courier could be an asset for physical stores to expand and compete.

Reference:  11.5.14, The Globe And Mail, Marina Strauss, Amazon.ca raises stakes in same-day delivery service