Tag Archives: Courier Service

Holiday Shopping Set to Increase Delivery Sales for UPS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Amazon Removes Upfront Fee for Amazon Fresh

same day deliveryWhat more could Amazon do at how they continue to advance Same-Day Delivery in all of the facets of their services.  The e-retailer is making the right moves at the right time.  Now, its’ recent adjustment to AmazonFresh could be just what it needed to make more shoppers buy into it.

Amazon has announced that it will adjust its’ pricing model for AmazonFresh, as it begins an initiative to attract customers and grow sales.  The same-day grocery service, which use to be $299 per year, will now be only $14.99 per month for existing Prime members only.  This equates to $179 per year, which is a $120 difference for AmazonFresh, in addition to Prime member subscription costs of $99.  Therefore, for $279 annually, Prime members can have it all, instead of the $299 for AmazonFresh alone, which some felt was steep. The new pricing could potentially gain momentum for AmazonFresh as the holiday season begin, as well as the e-retail leader enters the new year.

The change in fee structure could be a sign that Fresh is stabilizing and poised for more aggressive expansion,” said Keith Anderson, vice president of e-commerce analytics startup company Profitero.  Anderson went on to say, “This is supported by how prominently the new fee is being promoted on Amazon’s homepage in markets where Fresh is available.”  The article mentioned that some feel the high pricing was purposefully done to limit demand, while Amazon worked out the economics of the service.  Either way, Amazon is certainly in the driver’s seat when it comes to same-day grocery delivery.

Another comment in the article was by Anderson regarding what the move means for Amazon in the future ahead.  He stated, “This positions Fresh much more favorably.  An incremental, annual $199, paid up front, was unprecedented and a huge hurdle for mainstream households to commit to, even if Prime members skew to affluence.”  Usually low upfront fees for a valued-added service like fast delivery is much more attractive to shoppers.  This is why most retailers offer very affordable costs and then compensate by the sale volume they receive.

One example is what Wal-Mart has decided to do with subscription fees for its new ShippingPass service.  In July, Wal-Mart began piloting the program, offering free shipping with two-day delivery to draw in shoppers, in addition to its’ low annual fee of $49.  This is specifically designed to aggressive compete with Amazon, being half the price of Prime at $99.  Customers are able to get the same products they can buy from Amazon such as clothing, electronics, health products, and more via Walmart.com.  The online items with the ShippingPass logo next are eligible for the service.

A lot of retailers are taking note from not only what Amazon is doing, but how the retailer is doing it.  For same-day delivery, one viable option is to partner with a Same-Day Courier like 1-800 Courier to implement the service in major US cities and better compete online.  The San Francisco Courier has the courier technology and expertise to quickly create same-day logistic solutions for any retailer delivering groceries, online products and more.

Reference: 10.7.16, www.recode.net, Jason Del Rey, Amazon finally just proved it’s very serious about grocery delivery

Google Going to New York with Same-Day Delivery

same day deliveryAmazon has been making heavy strides with utilizing Same-Day Delivery to meet the trending online shopping demand.  It is to the point that many big name web-based and brick-and-mortar retailers are find they have no choice but to follow suit or get left behind.  This is exactly what Google is doing and its’ latest strategic move is showing that the e-retailer has a plan to capture more market share of its’ own.

Fox 5 News in New York recently reported how Google has launched its’ own same-day delivery service–Google Express.  The new service will allow shoppers to order from major retailers like Costco, Kohl’s, Whole Foods, and PetSmart.  These are some of the biggest names in retail that are in hot pursuit of Amazon also. If shoppers are desiring convenience, instead of increasing sales by attracting them to come shop at the store, Google and the major retailers will bring the online products to them–right to their front door.

The report discussed how nearly 70 million people in over a dozen states in the US, including the tri-state areas, will have the ability to easily order online from their smartphones.  This means there will be a lot of volume, which is one of the mean essentials for same-day delivery to work.  For example, a prime retailer like Whole Foods, which already offers same-day delivery in some major US cities like Atlanta, will only strengthened its’ customer loyalty base, as it expands together with Google in New York.

“Google Express is a number of items you can order via Google and Google Express and have it delivered in under an hour,” commented online shopping expert Michelle Madhok in the article.  Shopper will be able to pay either a per-order fee or an annual fee, which Google  Express subscribers will pay $95 a year, versus Amazon Prime’s $99.  Madholk went on to say, “Depending on the item, some will take a little longer, but you can click ‘get this today”.  The roll out makes sense for Google to expand in New York right before the holiday shopping season begins.  It is one of the prime cities in the US to capture end-of-the year sales for retailers, as Google can potentially team up with physical store retailers to move store product via omnichannel initiatives.

Google’s biggest competitor Amazon has had a lot of momentum, aggressively establishing same-day delivery within major US cities nationwide.  Thus far, Amazon has free same-day delivery in a total of 27 city markets, including the San Francisco Bay Area, Seattle-Tacoma, Dallas-Fort Worth, San Diego, Indianapolis, New York, Philadelphia, Phoenix, Boston, Tampa Bay, Baltimore,Washington DC, Chicago, Orlando, Atlanta, Nashville, Raleigh, Richmond, Tucson, Charlotte, and more.  To affirm how much pace Amazon has in their growth, its’ latest expansion just announced was launching free same-day delivery in Toronto and Vancouver.

To catch up with Amazon, companies like Google, Wal-Mart, Macy’s, and more are partnering with a Same-Day Courier like 1-800 Courier to develop same-day solutions in order to grow online.  The New York Courier has a national footprint and can perform the actual deliveries for any retailer within major US cities.

Reference: 9.28.16, Fox 5 New York, Jennifer Lahmers, Google Express delivery service debuts in New York

Amazon Expands Again, Launches Free Same-Day Delivery in Canada Cities

Same Day DeliveryWhen retailers thought they could take a breather, or even gain some ground with catching Amazon, the e-retail giant expands again.  Amazon has now launched Same-Day Delivery in Canada.

The Financial Post recently reported that Amazon Canada has announced that it will be offering free same-day delivery in Toronto and Vancouver.  The service will be available for only Prime members at no cost, which already pay $79 annually for free delivery without a minimum order required. These members will have at their disposal the fast shipping option for all orders above $25 in both cities.  Same-day delivery is more efficient within major cities that have the demographics and economies of scale that translate into volume.  This type of shipping thrives on this.

With Toronto being the biggest city in Canada, along with another top city of Vancouver, Amazon is certain to receive the response it’s looking for.
“We have been working quite hard to improve the speed of delivery and we got to a point where we are now able to offer that service,” said Alexandre Gagnon, vice-president, Amazon Canada.  He also said, “In general, people using e-commerce tend to want to receive those goods as fast as possible. In response to demand we are launching this program.”  The demand for fast delivery is justifying the expansion for Amazon.  As quickly as many shoppers can order online, is just as fast as they would like to receive what they order.  As a web-based e-retailer, same-day delivery is trending to be a value-added service that provides leverage on brick-and-mortar stores.

Jim Danahy, CEO of retail advisory firm Customer Lab, talked about Amazon and the value-adding of last-mile delivery. He stated, “With the membership, Prime is like a Costco for online, and where they really made ripples when they first did this was during the holiday season.  They have clearly demonstrated that same day and next-day delivery across the United States has made a difference. I can see this making a difference for people who are pressed for time. Many people decide which retailer they choose based on those kinds of features.  It’s an infinitesimally small piece of Canadian retail at this point, but it is where the industry is going.”

In an effort to compete with Amazon, other big name retailers have added subscription programs to their online report, namely Wal-Mart.  Wal-Mart has rolled out a new pilot program, ShippingPass, for annual membership.  Shoppers can join for only $49, in comparison to Amazon’s $99 Prime membership fee.   ShippingPass members have the option of free next-day delivery, as well as those that have already paid their fee will receive a free additional month.  Wal-Mart also is offering 30-day trial memberships to pilot program.  Wal-Mart.com will have a logo next to the products in which the ShippingPass service can be used.

For any retailer seeking to offer same-day delivery, a viable option is a Same-Day Courier like 1-800 Courier, which has the logistical expertise to create effective delivery solutions.  The Orlando Courier has a national footprint and establish same-day delivery throughout the US.  Retailers will have to do whatever it takes to contend with Amazon.

Reference: 9.27.16, Financial Post, Hollie Shaw, Amazon launches same-day delivery in Toronto, Vancouver

Retailers After Faster Shipping to Catch Amazon

same day deliveryIf you’re a retailer pursuing to catch up with Amazon, you won’t do it be doing the same thing regarding shipping options.  The e-retail giant has strategic order fulfillment centers placed throughout the US, coupled with an efficient logistics delivery system.  Two-day shipping is becoming the new standard for online retail and big companies are seeking to reach this fast delivery threshold.

Internet Retailer recently discussed what 30 top e-retailers are doing to get their online products shipped faster.  Its newly released “Click, Ship & Return: Fulfillment Report” study showed how they have all made delivery time improvements within the last three years.  The report tracked KPI’s including shipping speed, returns, and order processing times, and the average delivery time was four days.  This is a double the time frame that Amazon daily provides, yet it’s a step in the right direction, especially when traditional logistics may have been in place for so long.

The study mentioned who the retailers were and showed specifically their current shipping day numbers.  Nordstrom, Wal-Mart and Newegg Inc. lowered their delivery times by two days within two years.  J.C. Penney Co. landed most improved by cutting its’ delivery time to 5.1 days in April 2016, compared to 9.7 days in April of 2014.  Best Buy cut its delivery time by 3.5 days, equating to 3.3 in April 2016, versus 6.8 days two years ago.  The electronics giant stated that faster shipping times attributed to its 24% web sales growth in this year’s 2nd quarter.  When implemented effectively, a good delivery system will attract online shoppers, and if you supply the right service, you’ll keep them coming back.

The article mentioned some adjustments the study found that retailers have made to get their delivery times down.  E-commerce analytics company Slice Intelligence found one way they decreased shipping time frames were due to building more distribution centers to fulfill online orders.  These facilities then store merchandise near heavily populated areas to create the fast turnaround times.  The closer radius results in easier delivery routes and higher production as well.  This is contrary to traditional distribution and warehousing, which utilized less fulfillment centers instead.

This type of model is what has enabled Amazon to not only consistently provide two-day shipping, but the e-retail leader has taken the bar higher with Same-Day Delivery.  Prime members have the option of receiving two-day and free same-day services via Prime Now.  Amazon has now expanded its’ free same-day delivery to 27 major US city markets, including San Francisco Bay Area, Philadelphia, Seattle, San Diego, New York,  Dallas-Fort Worth, Phoenix, Indianapolis, Baltimore, Washington DC, Atlanta, Orlando, Chicago, Richmond, and more.

Same-day delivery is becoming more in demand as online retailer evolves, as retailers seek the omnichannels that connect between the web and physical stores.  With sourcing online order fulfillment from brick-and-mortar locations, shipping faster can be made easy with a Same-Day Courier like 1-800 Courier delivering for you.  The Los Angeles Courier has a national footprint and can create an optimal same-day delivery program for the largest of retailers.

Reference:  9.9.16, www.internetretailer.com, Kat Fay, Top e-retailers deliver the goods faster

UK’s Tesco Goes Click and Collect, Same-Day Delivery Could Be Next

same day deliveryIf a major grocery store chain in London is diving into Same-Day Delivery to compete with Amazon, there must be tangible results to implementing the service.  Groceries are items that consumers need daily, and as a supermarket giant like Tesco takes steps toward fully offering same-day delivery, it will help keep its’ current customer loyalty from swinging to Amazon.

Tesco has recently announced its’ plans to roll-out a same day ‘click and collect’ service for groceries from 300 stores throughout the UK.  Shoppers that place their order by 1pm, will be able to pick up from a local store after 4pm the same day.  One benefit to this model is that shoppers that work will have the convenience of being to buy their grocery items by early afternoon and can quickly pick them up on their way home from work.  In today’s business market, convenience is in high demand and the company that can save time for shoppers, will be the ones they keep using.

The service cost for click and collect will be £2 for a two-hour collection slot from Monday to Thursday during the week.  Friday or Saturday service requests will go up to £3 per slot.  Customers can choose either a 4pm to 6pm, or 6pm to 8pm collection window slot for all six days the service is being offered.  These slots enable shoppers to have additional pick up options and Tesco has more probability to capture late online sales.

Tesco stated in the article, “We know time is valuable to our customers and they expect more convenience and choice than ever before in how, when and where they do their grocery shopping.  Our same day grocery click-and-collect service is available at nearly 300 stores across the UK and means our customers can get their shopping at a time and location that is convenient for them.”  A value-added service like online order and pick up meets shoppers where they are, as well as it offers customers the benefit of saving time.  Ultimately, this is what same-day delivery creates for consumers, which is why Amazon Fresh is consistently experiencing growth.

Amazon aggressively pursued same-day delivery and now the service is thriving, as fast last-mile delivery is becoming a greater staple for the leading e-retailer.  It now even offers free same-day delivery for Prime members in the US, including San Francisco, Seattle, Chicago, Charlotte, Atlanta, Orlando, San Diego, and more.  Amazon has a total of 27 major city markets in the US that provide same-day delivery and it appears the service is right on the heels of Tesco and Sainsbury.

The two grocery store leaders are shifting with online trends, as many retailers and other businesses should do.  A Same-Day Courier like 1-800 Courier is a viable option to develop a same-day solution to quickly fill online shopping orders.  The Cleveland Courier has the courier expertise and has the latest courier technology that retailers need to delivery from multiple store locations.  To keep up with Amazon, it may take same-day delivery in order for Tesco to do it.

Reference:  8.24.16, www.dailymailcom, Sean Poulter, Tesco is to offer a same day ‘click and collect’ service for groceries as it moves to fight off threat from Amazon

Here Comes The Fragrance Shop With Same-Day Delivery Options

same day deliveryIf you thought only electronics, household goods and groceries are the only products that are being pushed for Same-Day Delivery, think again.  The Fragrance Shop in the UK is showing retailers that cologne and perfume are among hot items that shoppers want fast too.  With the retailer’s recent results with shipping options, The Fragrance Shop has jumped head first into the trending service.

The Fragrance Shop announced last week that it is going to launch a new one-hour delivery service, as well as a next-day delivery option, in three major areas in the UK.  At one juncture, the retailer only offered online customers a standard, next-day and a nominated day delivery, weekend options and a click & collect service.  As the service attracted shoppers via fast next-day and click & collect options, The Fragrance Shop has now decided to expand into one-hour services.

Mark Kelly, Fragrance Shop’s head of eCommerce, commented on his view on same-day delivery and its’ positive results.  He stated, “Fragrances are typically purchased as a last minute gift, so speed and flexibility of delivery is important. We want to maximize on this by making it easier for customers to make these guilt-free, eleventh-hour purchases. We chose to implement Shutl based on the company’s standing as a market leader in same day delivery and the fact we share the same ethos for superior customer service.”

The fragrance retailer isn’t the only company jumping into same-day delivery in the UK.  Supermarket grocery store chain giant Sainsbury announced the roll out of its’ own same-day grocery delivery, beginning with three testing stores.  Once the service as been effective and established, Salisbury has its’ sites on being in over 30 areas in the United Kingdom.  Many companies are gearing up now for the holiday season ahead.  Same-day delivery is positioning more and more companies to begin to thrive online, as more shoppers are looking for convenience.

Kelly also added in the article, “Shutl enables us to interact with our customers quickly, and in the manner of their choosing. This doesn’t just give customers greater control over when they receive their purchases, but by keeping the delivery time short, they are less likely to change or cancel their order or contact customer services for delivery updates.”  With same-day delivery, a retailer will only be as good as its Same-Day Courier like 1-800 Courier that it partners with for pick ups, deliveries and returns.

As a trusted shipping option, 1-800 Courier has the courier expertise and driver fleet to implement optimal same-day logistic solutions nationwide.  As Amazon continues to capture more and more market share, it will take a bold move for order fulfillment expand to the point of competing with it.  The New Jersey Courier has partnered with companies looking to adapt to today’s e-commerce and grow, especially as they see Amazon steadily getting more sales.  The Fragrance Shop isn’t reserving any investing, but rather is being aggressive about growing online and using fast delivery options.

Reference: 8.10.16, www.essentialretail.com, Caroline Baldwin, The Fragrance Shop rolls out one-hour delivery

Not Just Retail, Toyota and Lexus Go Same-Day with Parts

Same Day DeliveryAt first it appeared that the retail industry was the only one implementing Same-Day Delivery to capture more market share. Now, the automakers are seeing the benefits of fast delivery and diving in also.  The latest is Toyota and Lexus announcing a move to take same-day delivery and utilize it for dealership part fulfillment services.

Auto News recently reported how Toyota and Lexus will being to  offering same-day parts availability to their dealerships as a way to meet real time demand for repairs.  The faster a dealership receives their parts, the faster the service repairs can be completed.  Concerning that many times complaints come by customers in regards to dealership service departments, this will be an initiative worth pursuing by Toyota and any automaker seeking improvements.  Customers will know that their repair will be done in a timely manner, which will translate into good experience reviews.

in the article, parts managers added that the service will lower loaner car use and an increased efficiency of service bay usage.  Having to keep a loaner vehicle used longer then necessary equates to more wear-and-tear on them, which in some cases can be new, or fairly new vehicles.  Efficient use of bays means service technicians repairs are being maximized, creating a more fluid operation.  Parts are critical in making this happen, and same-day delivery may be the component automakers needs to shift with today’s business trends.

Customers want a higher level of convenience and speed with their services.  Automakers use to only deliver parts to their dealerships as fast as next-day delivery.  Yet, when the part doesn’t arrive or in cases of a part delivery error, that adds another two days to a car repair.  Same-day delivery will cut resolution times in half for dealerships.  The service will also create a part sharing system within their dealership network, which they can part swap and replenish needed inventory.  Also, dealerships will be enabled to set better appointment times and mechanic scheduling.

Parts manager Luciano Restrepo of Keyes Lexus in Los Angeles touted how the new same-day parts delivery is making a positive impact on his dealership’s success.  He stated about same-day part delivery, “That is the best thing Lexus ever did for us — the fact that we can get a transmission and a vehicle in and out in one day. I utilize the service every single day.”  As the part repairs are completed faster due to faster part deliveries, dealerships will create opportunity to take on more auto service requests.

What is separating one retailer from another, one dealership from another, or any other company in today’s markets is service time.  When you can provide the same product in less time.  Same-day delivery is transforming how we do business, especially as customers are able to do more online.  Automakers like Toyota can utilize 1-800 Courier as a Same-Day Courier to partner with to develop a same-day logistics solution.  The Tampa Courier has the courier expertise, a national footprint and the latest in courier technology to establish a thriving delivery base and grow.  From parts route delivery to dealership-to-dealership shipping, 1-800 Courier can help Toyota and Lexus use same-day parts delivery in major US cities nationwide.

Reference: 8.15.16, www.autonews.com, Jim Henry, Same-day service aims to give Toyota, Lexus stores competitive edge

Amazon Has 28% Sales Growth in North America, Prime and Fast Delivery Works

same day deliveryAmazon 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