Tag Archives: Courier Service

FAA Approves Amazon Drones For Same-Day Delivery

It 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

When 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

Sidecar Launches Same-Day Delivery

A lot of companies have leaped into providing same-day delivery besides well-known Google and Amazon. The latest to join in is Sidecar. The ride-sharing company has announced that it will be officially launching same-day delivery. Sidecar Deliveries is a new program that offers third party companies to use Sidecar vehicles to deliver their goods. For the past six months, Sidecar has been testing the service within the San Francisco Bay area and it has gone well there. With the success, Sidecar knows its’ business model works and will be rolling out the service.

Sidecar stated in the article, “During our test period, Sidecar drivers earned 75% more when they delivered both people and packages. Riders also reap the benefits of this people and packages combo because there will be more drivers available, lower wait times and even lower prices.” The idea makes sense, however, it was even more sensible to test their model first. Sidecar has researched and developed a same-day delivery solution that fits the company, which must be done. Without it, only estimated financial decisions, making for sub-par operational investing and the service won’t last long-term.

Founded in 2012, the San Francisco-based Sidecar is also available in Los Angeles, San Diego, Seattle, Chicago, Charlotte, Boston and Washington, DC. It has figured out the formula for same-day delivery in which it rents out its’ cars for third party deliveries, working with companies in the e-commerce, hot food, flowers and groceries spaces, rather than becoming a delivery service itself. The report stated that Sidecar’s same-day delivery space has spiked upward, representing 10% of its’ current ride volume in San Francisco. A San Francisco courier can assist an e-retailer quickly test same-day delivery and find whether it will produce growth also.

“Same-day delivery will represent half of our business by the end of 2015. Our vision is that one day any business will be able to take an order and get it to the customer in an hour, and Sidecar will be the service that powers this capability,” Sidecar said. Having items delivered within an hour is not only Sidecar’s vision, but a number of e-retailers and physical store retailers are striving to consistently offer same-day delivery within one hour. A same-day courier like 1-800 Courier specializes in fast, on-time deliveries and can be a viable nationwide courier to implement this level of last-mile services.

San Francisco is just the beginning, as Sidecar plans to roll out the service nationwide this coming year. This will put the company in a better position for more market share from competitors; namely Uber, which has decided to not offer the service. There are numerous big name e-retailers and brick-and-mortar retailers that are expanding into multiple US cities and will probably go nationwide also. Google and Amazon are launching same-day delivery in several cities, yet Macy’s is the retailer that launched same-day delivery late last year, including San Francisco, San Jose, Houston, Los Angeles, Seattle, Washington DC, New Jersey, and Chicago. Retailers are all pushing to make same-day delivery a viable and everyday way we do business.

Reference: 2.9.15, Vator News, Steven Loeb, Sidecar launches its own same-day delivery service

Potential Delivery Delays In Northeast, Use A Same-Day Courier

With plenty of snow that barreled down on the Northeast, many delivery companies are announcing that normal package deliveries will be delayed in those areas. Internet Retailer discussed a number of delivery updates were provided by big name companies to address the issue with their customers. The US Postal Service posted on its web site “strong winds and near-blizzard conditions will continue to make travel and mail delivery nearly impossible.” A number of plant operations were suspended yesterday, including New York, Massachusetts, Connecticut, and Rhode Island.

FedEx warned its customers on its site that there will be possible delays and service disruptions throughout the Northeast. It stated, “A winter storm is causing hazardous conditions in the northeastern U.S. Our top priority is the safety and well-being of our team members, as well as providing the highest level of service to our customers. Although contingency plans are in place, some service delays and disruptions can be anticipated for inbound and outbound shipments…”. The delivery company listed states being affected, such as New York, Massachusetts, Connecticut, Vermont, New Jersey, Pennsylvania, Rhode Island and others.

It’s major competitor, UPS, cancelled deliveries and pick ups in six states due to the storm, including Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont. UPS also cancelled the service in parts of New Jersey, New York and Pennsylvania. More specifically, UPS stated about 4,200 zip codes are being affected by the service cancellations.

Delivery company services are directly affecting online retailers also, especially those that perform same-day delivery. Online grocery retailer, FreshDirect, had to cancel Tuesday deliveries and says it will only have limited deliveries today. A number of New England-based retailers have closed their offices due to the weather, such as Karmaloop, Rhode Island jewelry retailer Alex and Ani, Ross-Simons, and others.

Karmaloop is using the storm as a marketing opportunity, offering shoppers 25% off almost everything in the store using certain online promo codes that relate to the storm. Boston-based online shoe retailer Shoebuy.com is offering shoppers 25% off plus free shipping and returns using an online code. This is an innovative way to essentially generate business sales after the storm to make up for business closures and delivery delays.

The Grommet, an online marketplace company based in Massachusetts, closed its’ offices. “We anticipate a day or two delay caused by the overall disruption to freight carriers,” stated co-founder and CEO Jules Pieri in the article. Pieri said its’ employees are working from home. The Grommet has a warehouse in Pennsylvania and does not expect too many weather-related delays from their own order fulfillment. This attests to some online retailers may or may not have the functionality to navigate business and transportation needs with a storm such as this. A same-day courier like 1-800 Courier may be a viable option for online retailers to turn to for package and box deliveries after the storm.

Big name e-retailers such as Google and Amazon may have to improvise to perform deliveries during the storm also. Amazon announced last year its’ one-hour same-day delivery service and Google performs same-day delivery in New York as well. 1-800 Courier is a New Jersey courier that has a national footprint, and depending on the area, may be able to assist various companies with flexible delivery needs. Call 1-800 Courier and see where the courier is operating for delivery assistance today!

Reference: 1.27.15, www.internetretailer.com, Matt Lindner, The Northeast storm causes package delivery delays; www.fedex.com

Could US Postal Service Turn to Same-Day Grocery Deliveries?

The Postal Service isn’t pleased with it’s financial state and hasn’t been for quite some time now. It is indeed looking for change and the outgoing US Postmaster General Patrick Donahoe has mentioned some innovative measures for growth. Reuters reported a few weeks ago Donahoe stated that not only can overcoming health burdens make the US Postal Service more profitable, but same-day delivery of groceries can too. He will be leaving the Postmaster General position as of February 1st, yet he states the service needs greater control of its’ workforce and more flexibility in pricing and developing new products.

He stated the USPS could be profitable if it changes its’ business model and experimented with same-day delivery of packages and grocery deliveries as forward-looking tactics. He stated, “There’s plenty of interesting opportunities going on, we think, from the standpoint of delivery, many different things. The grocery business could be a multi-million-dollar business from our perspective … You can’t limit yourself to what you’re doing now.” There are a number of retailers already involved in same-day delivery of their products that outsource to a same-day courier like 1-800 Courier to pick up and deliver items.

The USPS took a hit last year to make sure it financially covers the health retirement benefits for its’ workers decades ahead. It is government required and has led to default in recent years, in addition to union opposition to the deals the USPS can make with retailers. The report mentions the Postal Service has been losing billions of dollars for years, including $5.5 billion in fiscal 2014, despite cutbacks in the workforce, consolidation of facilities and other cost-cutting moves.

The mail giant strongly desires to get away from the hands of Congress, deeming it doesn’t have the autonomy to get itself out of the deep hole financially. The article quoted Donahoe stating at the National Press Club, “Congress needs to look at the Postal Service as a business that is going to be a lot different in the coming years and it should view this as a positive, desirable outcome”. With the way technology has morphed business done online, all it takes is the right innovation for the USPS to make become strong, i.e. delivering groceries same day.

Online retail is estimated to increase to $500 billion by 2018. It is a viable avenue for the US Postal Service to take because it has the operational facilities and vehicle fleet to deliver a wide range of items within major US cities. It already delivers our mail, therefore, delivering online products and groceries makes sense. Metro Post, the USPS’s last-mile delivery service, already partners with Amazon to perform same-day delivery on Sunday’s in New York. Expansion of Metro Post is a matter of partnering with more web-based and physical store retailers.

For online shopping, the company delivered 28 million packages on December 22nd last year, which was a one-day record for the USPS as a whole. Time will tell whether the mailing company will be able to operate like a Dallas courier and see how it can thrive with same-day grocery deliveries.

Reference: 1.6.15, www.reuters.com, Jason Reed, Outgoing U.S. postal chief hails grocery delivery, seeks innovation

In-Store Pickup Services Creating Challenges For Retailers

In-Store pickup is one of those popular new online additions retailers have added to the web, and shoppers love it. However, Forrester Research recently released an article regarding findings that a high level of efficiency is required to keep store pickups operationally and logistically feasible. Forrester Analyst Brendan Witcher wrote a new report, “Nailing In-Store Pickup” discussing how customer expectations are on the rise when it comes to in-store pickups. From a survey of 3,000 online U.S. adults, over 53% of them expect notification in two hours or less that orders are ready for pickup.

This means customers are sensitive when it comes to their time, which is why they’ve opted to select in-store pick up. Those expectations are likely to have some retailers’ setting aggressive promises over their heads. An example the article mentions is Best Buy Canada, which guarantees orders placed online will be ready for in-store pickup within 20 minutes. This is impressive if they can consistently deliver this level of efficiency. Other retailers may not be able to have accurate inventory and the staffing to pull this off.

Forrester also states 70% of shoppers say they use in-store pickup services to primarily avoid shipping costs. They also select it for other popular reasons such as its’ level of convenience, to ensure the product is available and reserved for the shopper, to get the product the same day, and to avoid taking the time to find a product in the store. Convenience is valuable, as shoppers could be visiting that retail store anyway, so it makes sense to order online and pick it up.

Retailers have implemented same-day delivery to meet the shopper demand for items the same day. Google, Amazon, Wal-Mart, and others have made huge investments into this online delivery option. Amazon launched its’ service in 8 more major US cities late last year, including Atlanta. Surprising newcomer Macy’s rolled out same-day delivery in Seattle, San Jose, Houston, Los Angeles, San Francisco, Chicago, Washington DC, and New Jersey. Sister company Bloomingdale’s launched the service in select cities also. Web-based and physical store retailers are partnering with a same-day courier like 1-800 Courier to perform deliveries. The Houston courier can be an option for store returns also.

Inventory is key with in-store pickups and the communication of those available products. Witcher also stated real-time inventory information should be within the product description or product listing pages on the retailer’s online store. Nationwide brick-and-mortar stores have much more volume than a smaller retail store or e-retailer. It makes it more imperative to meet customer expectations or pull back participating stores that don’t meet the efficiencies. Loyalty is valuable for retailers and they don’t want to give good reason to turn to another retailer for the same product because it wasn’t there when they were told it would be.

In-store pickups will rise in the future, as online retail is projected to increase to over $500 million by 2018. Shoppers even have mobile devices creating convenient and easy online ordering. As technology innovates more logistical solutions to enable retailers to meet the challenges and put all the pieces together.

Reference: 1.13.15, Internet Retailer, Allison Enright, While shoppers like in-store pickup, it is tough for retailers to do well

Macy’s UPS Web Investments, Will Boost Delivery Program

Macy’s has recently announced it is beefing up its web investments and making some additional moves to swing revenue into it. The department store’s multiple adjustments include the merger of its online and store merchandising marketing teams. It will hire 150 more employees for its digital center specific to San Francisco, in addition to closing 14 stores while opening two new ones, with less workers in each store. Merchandising is key with any online retail growth. Shoppers know what they want and retailers’ merchandising channels must respond quicker in today’s e-commerce.

“Our business is rapidly evolving in response to changes in the way customers are shopping across stores, desktops, tablets and smartphones,” chairman and CEO Terry J. Lundgren said in the article. ”We must continue to invest in our business to focus on where the customer is headed—to prepare for what’s next.” Years ago online retail wasn’t in the same league with brick-and-mortar stores, yet technology has made shopping so easy. Consumers in fact enjoy the convenience of looking for deals and buying items wherever they are—evening the plain. E-commerce is no longer a distant second, making business sense for Macy’s.

Lundgren went on discussing details behind the new web investment technology to come. “Going forward, Macy’s and Bloomingdale’s will be better able to move more quickly and nimbly to select merchandise, assort inventories and serve total customer demand, no matter how, when or where the customer shops. Some redundant activity also can be avoided to accelerate speed to market, partner more effectively with vendor resources and ensure the merchandising organizations are more responsive to the marketplace in making and implementing decisions”.

Since online retail is growing, retailers are presenting convenience to shoppers with same-day delivery. Multiple big name retailers have implemented it, including Macy’s, which aggressively plunged in with 8 major US cities before last year’s holiday shopping season. Those cities included San Jose, Houston, Los Angeles, San Francisco, Seattle, Washington DC, New Jersey, and Chicago. Sister company Bloomingdale’s launched the service in select cities along with Macy’s. More probably will follow with its’ breadth of web expansion.

Online growth will translate into improved delivery programs. The web technology alone positions retailers and delivery companies to partner to achieve profit and cost savings, something years ago couldn’t be done. For example, Instacart now can do what Webvan did without multimillion dollar distribution centers with only 70 employees. Made up of engineers and administrators, Instacart’s model is smarter and exact with last-mile deliveries, partnering with a same-day courier like 1-800 Courier to service them. Macy’s has partnered with Deliv to meet their same-day delivery demand.

Google, Amazon, eBay, Wal-Mart, and others have invested heavily into their respective online markets, as well as same-day delivery for order fullfillments. Many retailers invest in partnering with a courier like 1-800 Courier to boost their delivery programs. The New York Courier has a national footprint as most large web-based and physical store retailers are in need of an agile partner. Macy’s fast track with e-retail will certainly increase its’ same-day delivery options.

Reference: 1.8.15, Internet Retailer, Don Davis, Macy’s steps up its online investments

Technology Making Same-Day Delivery Become Big Business

If you would have told Kozmo.com to wait a little longer for technology to catch up with what it was attempting to launch, maybe the company would have made it to the finish line. Technology has helped innovation to make same-day delivery feasible. With the advanced use of tech gadgets by shoppers, from smartphones to tablets, online shopping is more attractive and last-mile deliveries more appealing than ever.

USA Today recently released an article discussing how home delivery business is becoming something very profitable. E-commerce is estimated to reach $500 billion by 2018 and online retail has consistently increased 16% annually. With the rise of technology, the atmosphere is ripe for same-day delivery to become a more powerful and sustainable role in generating revenue for web-based and physical store retailers.

The climate for business is to use technology to work smarter, not harder. The article pointed out how companies like Instacart with 70 employees, is able to offer one-hour grocery delivery services in 12 cities utilizing its’ network of personal shoppers to pick up and deliver to homes. These shoppers aren’t among its’ direct employees, but rather contracted as a same-day courier like 1-800 Courier. Instacart’s employees consist of engineers and administrators, in addition to the company not owning any warehouses or distribution centers for product. This is essentially sound and effective use of technology to create a seamless delivery system.

Amazon’s model includes numerous of technology-driven, fulfillment centers in the US as a part of its’ implementation of same-day delivery. The e-retail leader has had its’ sights on same-day delivery all along, launching the service in multiple US cities, including ending last year with adding New York City, Baltimore, Indianapolis, Washington DC, Philadelphia, Dallas, and Atlanta to its’ list. Amazon opened its’ very first physical location its’ 20-year history, to aid with same-day delivery and online order pick up in Manhattan, New York. Bike service is offered in New York as well.

The article mentions how technology has enabled start-ups and large business to utilize various sophisticated frameworks to ultimately logistically optimize on same-day delivery. Now, storage and computing costs decrease and the service becomes more manageable. Algorithms are being used to help couriers pick up and deliver faster, and at the same time, maximize the completion of orders. This type of technology was not as enhanced and refined a decade ago. For same-day delivery to work, the numbers have to be right and technology is allowing companies to obtain the figures to make targeted decision making.

It helps retailers like Google, Macy’s, eBay, Wal-Mart and others to partner with a same-day courier like 1-800 Courier, which has the courier technology to maximize on last-mile deliveries. The Houston courier has a national footprint and the logistical expertise to create route optimization for volume, consolidated order fulfillment. As technology continues to excel, same-day delivery will grow with it.

Reference: 1.6.15, USA Today, Michael Moe, There’s big money in the home delivery business

Same-Day Delivery Grows, But Will The Drivers?

Courier Services 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

EBay Expands EBay Local Pilot Delivery Program In Brooklyn

The 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

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