Tag Archives: Los Angeles Courier

Sainsbury Tests Same-Day Grocery Delivery in 30 Stores

We’ve seen Amazon pioneer successfully a wave of engagement into Same-Day Delivery of groceries with Amazon Fresh in the US.  From Seattle to New York, the service is in a variety of markets in the US, in addition to launching it in London.  Now same-day grocery is growing in London and BBC Radio talked with grocery chain leader Sainsbury about the service and where it’s headed.

BBC Radio in London has discussed how same-day grocery service is becoming more and more attractive for supermarkets.  Three out of the big four have become involved with implementing and testing online grocery delivery.  Tesco is testing the service in London and the South-East, Morrisons has partnered with Amazon Fresh and Sainsbury’s is piloting it in 30 stores. Grocery retailer Asda has not decided to jump into same-day groceries yet.

Sainsbury is currently testing same-day grocery delivery in 30 stores, and has its’ sites on expansion.  However, the grocery chain leader wants to work out all of the kinks before it does.  Right now with the stores that are offering same-day grocery service, a customer can place their order online by midday and have it delivered that evening.  The fee can be up to 9 pounds, which equates to a little over $11 US dollars.  Orders made by subscribers, or over 100 pounds, would be be free.

One of the primary hurdles for delivering groceries fast has always been costs.  It could be a challenge to generate a profit.  Same-day grocery delivery goes beyond the transportation element.  It entails the pick and packing costs, storage, employee, and other operational expenses specific to the business that could be involved.  Sainsbury mentioned that its’ focus was on giving its’ customers what they want, and relative to taking a loss to offer same-day grocery delivery, it would consider individual store costs on a whole scale.

The radio did a spotlight of a grocery store worker picking and packing an online order.  One part of the process discussed was the actual selecting of the fresh fruit and vegetable items that are ordered.  Although time is critical, the employee stated they had to make sure that the foods selected were ripe and fresh, even something themselves would pick.  With grocery delivery already with a small margin at start-up, choosing the wrong food items or selecting rotten fruit could result in re-delivery costs, as well as customer loss.

An actual delivery by Sainsbury was made that afternoon and BBC went along with them.  The Sainsbury store packed up 45 orders to deliver.  One customer delivered to when asked about same-day grocery service, said that he used it before and it was good. Upon delivery, when asked about the cost of it, the customer stated they paid 5 pounds and that it was fine.

Convenience is heavily trending right now and the retailer that can meet customer demand, will be the ones that thrive. A Same-Day Courier like 1-800 Courier can partner with grocery stores that are seeking to test and implement the service in the US.  The Los Angeles Courier has a national footprint and the delivery expertise to develop an optimal same-day grocery service solution that works.

Reference: 1.25.17, BBC News, Why same-day online food shopping is the next big thing

$20 Billion Online Growth in Middle East

Same Day DeliveryOnline retail is forecasted to reach $500 billion by 2018 worldwide, as well as Same-Day Delivery at $987 million by 2019.  E-commerce is growing in the Middle East and expected to increase to $20 billion there this year.  It’s no reason why SOUQ.com, the Middle East’s largest online retail and marketplace platform, has announced that it will be launching same-day delivery there.

Arabian Supply Chain reported that SOUQ.com will begin offering the same-day delivery for “Fulfilled by SOUQ” (FBS) in Dubai for all online orders placed by 3pm.  It is the first e-commerce business in that region to launch this type of service, with hopes to expand throughout that area.  More than likely, the service will be established and optimized in Dubai, then SOUQ.com will implement it further.

“Our primary objective is to deliver the highest quality products and a service as efficient and quick as possible to our customers,” said Ronaldo Mouchawar, SOUQ.com CEO & Co-Founder in the article.  He also stated, “With the Fulfilled by SOUQ (FBS) program, we manage the fulfillment and logistics for third-party sellers, saving them time and money, and our home-grown logistics arm Q-Express as well as our partnership with WING.ae provide us with the most efficient delivery service in the region with real-time order tracking. We believe that our same day delivery and SOUQ delivery promise initiatives are a huge step forward in corresponding supply with customers’ demand and further making online shopping experience seamless and enjoyable.”

Mouchawar has the right strategy, shifting beyond traditional online shipping, which is what several big name retailers are doing.  In recent years, Amazon has aggressively invested and implemented same-day delivery around the world.  The e-retail leader has free same-day delivery in 27 major US markets such as the San Francisco Bay Area, San Diego, Seattle-Tacoma, Dallas-Fort Worth, Boston, New York, Chicago,Indianapolis, Tampa Bay, Baltimore, Washington DC,  Orlando, Nashville, Raleigh, Richmond, Tucson, and Atlanta.  Amazon launched free same-day delivery in Toronto and Vancouver, in addition to Amazon Prime in London.  Google, Wal-Mart, Macy’s, Alibaba in China, Best Buy, and more are all on some level utilizing fast delivery.

SOUQ.com COO Wisam Daoud commented about what the service will do for their business.  He stated, “This innovative initiative is one of the region’s first- enabling customers to choose from the largest assortment of products and categories at the quickest turnaround. This landmark service will allow customers to buy their products in just a few clicks and receive their purchases just a few hours later- a testament to our constant endeavor of utilizing technology and our operational expertise to further drive the e-commerce growth in the region.”

Whether it is the Middle East or US, it is clear that retail is evolving into having omnichannels that offer seamless operations between online and physical store shopping.  1-800 Courier is a great example of how any retailer can quickly enter the market of same-day delivery and get product moving.  The Los Angeles Courier will develop a sound delivery solution and perform on-time deliveries for the convenience that retailers and their customers are looking for.

Reference:  11.10.16, www.arabiansupplychain.com, ASC Staff, SOUQ.com enhances logistics with same-day delivery

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

UPS Gains Higher Revenue, Can Increase More with Same-Day Delivery

Courier ServiceAs UPS seeks to remain a leader in delivering packages, there are a number of other big name carriers that are competing for market share position.  FedEx and the US Postal Service are both being aggressive for more revenue.  Recent numbers show that UPS sales did go up, but not a lot.

UPS’s second-quarter revenue slightly increased within its’ domestic and international package divisions.  The Washington Post reported details regarding about sales and other factors impacting where the industry is currently at right now.  Other companies are beginning to weigh in on the delivery industry, which is compelling UPS to think outside the box in order to keep growing.  UPS’s revenue went up to $14.63 billion, up from $14.1 billion. Analysts surveyed by Zacks Investment Research had an expectation of $14.6 billion in revenue.  Therefore, UPS did produce a little higher than forecasted.

The article also mentioned that the US domestic package unit increased 4%,along with average daily package volume up 2.5%.  Second quarter revenue figures rose 1.1% in the international package division and 3.9% for daily export packages.  For the three months ended June 30, UPS earned $1.27 billion.  This was higher than $1.23 billion the same period year over.  It may not be a huge increase, but it does sow that something’s being done right.

Online retail is impacting the package delivery industry as well.  Shoppers have become more comfortable with making online purchases, which in turn, increases revenue for carriers like UPS, FedEx and the USPS.  It also creates a higher demand for Same-Day Delivery, which e-retail giant Amazon has strategically implemented the service throughout the US.  The free service is available in San Francisco, San Diego, Seattle, Dallas, New York, Philadelphia, Chicago, Boston, Richmond, Orlando, Atlanta, and several other major city markets.  With 27 major cities already with same-day delivery, Amazon probably has its’ sights on more cities to come.

This provides insight on why Amazon has leased 40 cargo planes from Boeing and Atlas Air for the purpose of creating an air cargo network.  Amazon stated it doesn’t plan to build its’ own delivery service and is only looking to work closer with package-delivery services like the USPS, FedEx and UPS.  A move like this will have a wide affect on all three carriers, being Amazon uses them as delivery companies, which as a business partner, provides UPS a lot of business.

UPS is looking to shift along with today’s markets, even studying same-day delivery.  Earlier this year, UPS conducted a study on fast deliveries and led a $28 million funding round for start-up fast delivery company Deliv.  The article didn’t mention the investment size, yet it did state that UPS was taking a minority stake in Deliv and sits in on board meetings.  After doing the same types of deliveries for years, UPS sees it may be time to enter into some new markets to meet customers where they are.

Many companies are doing the same, even partnering with a Same-Day Courier like 1-800 Courier to launch same-day logistic solutions in major cities.  The Los Angeles Courier has a national footprint and the expertise to help any business become engaged in same-day delivery.  If UPS and Amazon are clearly improving its’ business product to increase revenue, other companies can take note and do the same.

Reference:  7.29.16, www.washingtonpost.com, Associated Press, UPS 2Q revenue improves on strength in US, abroad

Online Grocer Blue Apron Lands $135 Million funding, Same-Day Delivery Could Be Next

Courier ServiceIt is becoming an online feast for shoppers to enjoy making all types of purchases.  New retailers are entering a variety of markets and offering everything that a customer could think of, even make-at-home meals.  That’s right.  Blue Apron may have found a big niche and their recent numbers are showing it.

Blue Apron is a grocery delivery service that will deliver a recipe and the required ingredients for it to your front door.  They are based on seasonal ingredients.  Internet Retailer has reported that Blue Apron has now raised $135 million in a funding round led by Fidelity Management and Research, with participation from existing investors also.  Blue Apron is the fastest growing e-retailer on Internet Retailer’s 2015 Top 500 Guide.  Its’ sales surged to $65 million in 2014, which is an increase of 550.2% from the previous year.  Blue Apron was launched in 2012, and has raised $190 million to date.

What’s even more impressive is that Blue Apron currently delivers over 3 million meals per month.  Its’ volume is up 50% from six months ago.  The numbers indicate that online retail is moving beyond just a trend, but entering into a way of life, even with our very own groceries.  It saves the work put into going to the grocery store, finding all of the ingredients, and maneuvering through traffic to get home to cook.  When you arrive home, the food and recipe is there.  The report mentioned that the grocer company sells meals for two or a four-person family.  It will be interesting to see if Blue Apron will go same-day delivery to offer even more service options.

Blue Apron co-founder and CEO Matt Salzberg discussed its’ mission and what the company’s additional financing will enable Blue Apron to do.  He stated, “Our mission is to make incredible home cooking accessible to everyone. This financing will allow us to further improve the efficiency of our model, from sourcing to fulfillment, in order to bring our customers a level of quality that has never been available at scale before.”  This is a creative service for those who can cook and those that desire to learn, making home cooking not only accessible, but convenient.  Customers are looking to save their time and Blue Apron appears to have found a way to do so–in the kitchen.

With grocery delivery beginning to really make an upward swing, more and more online retailers will seek after sound delivery models to get their products to their customers on time.  A number of e-retailers and brick-and-mortar retailers have partnered with a same-day courier like 1-800 Courier to create an optimal same-day delivery logistics solution for small packages, electronics, household goods, and more.  A courier can also be a viable delivery option for online grocery shopping to meet their order fulfillment needs also.  The Los Angeles Courier has the expertise for not only local, but nationwide solutions for same-day services and can do the same within the grocery sector.  As online grocery demand grows, retailers will need a delivery service that can grow along with it.

Reference:  6.9.15, www.internetretailer.com, Thad Reuter, Fast growing online grocer Blue Apron raises $135 million

Macy’s Could Move To Forefront With Same-Day Delivery

Macy'sOut of all of the retailers that have heavily invested and taking big swings at same-day delivery, who would have known that Macy’s could be the one that actually capitalizes the most on the popular service.  Between Google and Amazon, you can take your pick, however, Forbes recently reported about how Macy’s may in fact become the big favorite to crack the code with same-day delivery.

Macy’s trials in the service started in October and now it appears it is becoming more of a reality for the department store right before the holiday shopping season kicks off.  Macy’s will be offering same-day delivery in several cities for orders placed by 1 pm, Monday through Saturday, and by 11 am on Sundays.  Customers will have options for two-hour delivery windows as well.  Macy’s says same-day delivery is “built on an operational foundation” that led to the full roll-out this fall of what is calls BOPIS (buy online, pick-up in-store) across its network of stores, and a part of its’ omni-channel push.

Deliv, Macy’s partner, is not based on the typical approach to same-day delivery, where as it’s crowd-sourced.  Average, everyday people pick up and deliver items for the new upstart.  The newcomer has gone after malls as prime targets to partner with and is so far getting the agreements it needs for solid growth.  It has new malls in Los Angeles such as the Beverly Center on board to join its’ presence already in other areas of the city, as well as San Jose and San Francisco.  Seattle, Washington DC, Houston, and Northern New Jersey also became a cities that Deliv has rolled out in also.  Another viable option for Macy’s is a Los Angeles courier like 1-800 Courier, utilizing an experienced, driver-based service nationwide.

Months ago, Macy’s announced that it would be taking same-day delivery head on and immediately launched it in several major US cities.  Those cities included San Jose, Houston, Los Angeles, San Francisco, Chicago, Washington DC, Seattle, and New Jersey.  Sister company Bloomingdale’s also was released would be right next the Macy’s and offering same-day in some of those same cities.  As more talk builds regarding Macy’s push to compete, it will clearly be utilizing the service more and more, especially as Amazon and Google make their moves for more share of the retail market.

There is the pricing in Macy’s favor versus other retailers that makes its’ service attractive to shoppers.  Macy’s costs for same-day delivery orders over $99 is only a flat $5 bucks.  Smaller orders are charged standard shipping rates, with an additional $5, drawing shoppers to the same-day option.  Its’ competitors, such as Amazon, is a little higher at $5.99 for Amazon Prime members. However, Non-Prime members will pay $9.98 for the first item, plus $.99 cents for each additional item.  Google Express uses a same-day courier and offers charge options of $4.99 per order or $10 a month and $95 per year.  Walmart To Go is $10 regardless of the order size.  Overall, Macy’s has a very impressive structure to win with the service.


Reference:  11.21.14, www.forbes.com, Tom Ryan, Same-Day Delivery May Be A Win For Macy’s