When 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%

Amazon 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

Being able to deliver your products to your customers fast hasn’t always been crucial to keeping them.  As long as you can get their order to them within a few days, they were fine and they remained loyal as well.  Yet in today’s online market, and with the pressure Amazon is putting on retailers to engage in offering various shipping options, getting shoppers their online items within the same day has become vital to being relevant in e-commerce.

Grocery store chain leader Sainsbury is not taking it lightly, as Amazon begins to expand Same-Day Delivery within the UK.  Now, Sainsbury has decided to make a move of its’ own and has announced its’ launching of same-day grocery delivery within 30 areas throughout the country.  Its’ goal is to have the service implemented in those areas by Christmas this year.  The holiday season is not only ideal to generate more revenue, but it is also a time a retailer can attract shoppers just enough to sway their loyalty from a company like Amazon.  In Sainsbury’s case, it’s AmazonFresh.

The Daily Mail article discussed how the new service will work.  For all online grocery orders that Sainsbury receives by noon, it’s shoppers will receive by 6pm the same day.  The article didn’t mention who will be performing the actual deliveries for Sainsbury, or whether the grocery retailer will be doing them itself.  Several companies that implement same-day delivery partner with a Same-Day Courier like 1-800 Courier due to have the logistical and routing expertise in order to optimize on transportation costs.  The New York Courier has helped hundreds of companies create same-day solutions nationwide.

Currently, Sainsbury offers next-day delivery on all orders placed before 11pm, as long as a delivery slot is available.  This is a commendable delivery option, however, rivals Tesco, Asda, Morrisons and Ocado offer similar services, not to mention e-retail giant Amazon.  Moving beyond its’ competition is what Sainsbury is after, and with Amazon’s pace, it doesn’t have a choice.  Sainsbury will also offer a pick-up option, which will be ready to pick up from 4pm at stores.  This gives shoppers the flexibility of not having to remain at the store so long with fast pick up in case they need to save time.

As same-day grocery delivery will be with any type of shipping, the fees for shoppers will play a part in its’ success.  Sainsbury will be charging up to £7 for same-day grocery delivery, yet will offer a membership program that customers can take advantage of to pay less. With Sainsbury’s Delivery Pass, customers will pay no delivery fee for all orders over £40.  The pass costs between £30 and £60 a year, which equates to being between $39 and $79 US dollars.  Amazon’s Prime membership program is $99, as well as newcomer Wal-Mart with its’ ShippingPass program provides free two-day shipping for $49 a year.

The shift that Sainsbury is making in the UK, is a shift that an array of big name retailers and companies are doing in the US.  Technology has propelled online business more and more to the front of the line, right next to physical store shopping.  Now, it is only a matter of who can get your online product to your front door first and consistently do it to keep the shopper coming back.

Reference: 7.21.16, www.dailymail.co.uk, Sean Poultner, Sainsbury’s takes on Amazon with same-day delivery pledge

If it were possible to engage order fulfillment from a distance, then retailers would do it.  However, there is no way around having close proxy warehousing if Same-Day Delivery is going to become a staple service within your online business.  Amazon established fulfillment distribution centers strategically across the US and now providing efficient last-mile deliveries is quite easy.  Many big name retailers are aggressively pursuing to follow the same blueprint, and as a result, warehouse space demand is rapidly increasing.

Retail Dive via Bloomberg recently reported that online retail is now accounting for 20% of warehouse space.  This means that there is a more intensive effort to grow online, not just within a retailer’s physical store locations.  Also, more start-up, web-based retailers are experiencing growth, which online retail has consistently increased in recent years.  It has been forecasted that online retail would reach $500 billion by 2018.  Therefore, the warehouse space usage is in line with the numbers and shoppers are more comfortable with buying online.

The article mentioned that the renting of prime warehouse space in the US rose 9.9% last year.  It pointed out six markets that were among the nine with the biggest increases globally.  Real-estate brokerage firm CBRE conducted the research and found that Oakland, California topped the list with 29.8%, which was seen also in Northern New Jersey.  These are areas where strategic warehousing is becoming a hot commodity.

David Egan, CBRE’s head of industrial and logistics research for the Americas, discussed warehousing and the benefits of it with the Wall Street Journal earlier this month, “There are huge premiums being placed right now on being close to the consumer—speed of service, speed of delivery is a critical component of why people choose to buy from one retailer over another.  To get the goods to consumers fast, you have to get close to them.” The closer the retailer, the better their service can be geared and the greater the options can be.  With inventory a few miles away, retailers can replenish stores, correct error shipments and more, even offer same-day delivery.

This is exactly what Amazon has done with their order fulfillment centers and now have 27 major cities in which it provides same-day delivery to Prime members–for free.  Eleven of those cities were established this year, including Sacramento, Stockton, Fresno, Louisville, Tucson, Milwaukee, Nashville, Charlotte, Cincinnati, Richmond, and Raleigh.  To offer this type of fast delivery for free, it was essential to have an optimal warehousing system in place.

Others will have to do the same if they want to thrive with a same-day delivery service model.  Effective warehousing must be coupled with an effective delivery operation also.  A Same-Day Courier like 1-800Courier is a viable option for retailers to partner with and establish on-time deliveries after they secure their warehouse space.  The New York Courier has the courier expertise to develop sound same-day solutions, as shoppers and online retail itself begins to demand more from them.

Reference: 5.25.16, www.retaildive.com, Daphne Howland, Report: E-commerce growth driving rush for warehouse space

There are some very big retailers that are seeing the benefit of literally meeting shoppers where they are with same-day delivery.  With just a quick product search, find of a great online deal and checkout, an online shopper can have their items from Macy’s, Google and Amazon in no time at all.  In a matter of hours, you can have your household goods, tech gadget or even food, at your door.

Yet, other companies are seeing these well-known retailers thrive, and they want a slice of the pie too.  Etsy has decided to be one of those retailers and now the company has entered the same-day delivery race.  Re/code recently reported that Etsy has announced it’s new pilot program to test same-day and next-day delivery in parts of New York City, specifically Brooklyn and Queens.  Etsy ASAP will launch sometime this fall, and shoppers in these areas will begin to find the delivery option on Etsy’s product search and checkout pages.

The retailer will be partnering with delivery startup Postmates, a service product via the US Postal Service, which is venturing into new innovations utilizing its’ robust delivery fleet.  Postmates couriers will be stationed in areas Esty services and be ready to deliver.  New York City has the infrastructure and economies of scale to make same-day delivery work.  The service marketing, in conjunction with Etsy products, is what will make the difference, because more shoppers will probably use it the more they are aware of it.  It’s better to market same-day delivery now before the holiday season arrives.

Testing the new service couldn’t come at a better time with the new holiday shopping season knocking at the door.  It makes sense.  A year ago, popular department store leader Macy’s quickly rolled out  same-day delivery is several large US cities, including San Francisco, Los Angeles, San Jose, Houston, Chicago, Seattle, New Jersey, and Washington DC.  This past August, Macy’s expanded its’ service into nine more US markets, with plans to add 14 more by the end of this year also.  With all of the new additions, Macy’s will surpass Amazon’s service reach in the US.

Calia Talmor, senior product manager for shipping and order management, talked about in the article the demand Etsy receives for fast delivery. She stated, “We hear from sellers that they get constant requests from buyers for getting stuff really fast.  They feel they are in a bind and actually it’s technologically almost impossible…this gives them a way to do it really easily on Etsy”.

For Macy’s, it is full stream ahead with expanding its’ same-day delivery programs throughout the US.  It had no thought of slowing down its’ momentum, just like Google, Amazon, Uber, and others. USA Today reported that Macy’s is expanding into nine more US markets this month.  With the addition of the new service areas, it will surpass Amazon’s presence with having the most cities with same-day delivery.  The article mentioned that one of the primary reasons for the expansion is its’ stores now have the capability to stock in-store inventory, in addition to its’ delivery partner Deliv can transport the online orders from store to the shopper’s destination.

In a statement, R.B. Harrison, Macy’s chief omnichannel officer, gave remarks on the importance of establishing this new core service. Same-day delivery “is an important part of our value proposition as an omnichannel retailer”, he said.  The retail giant operates about 885 stores nationwide.  This means stores will be just like warehouses for online orders.  Macy’s service involves same-day delivery for all online orders placed up to 1pm, with the exception of its’ Sunday time frame by 11 am.

The expansion again comes right before the holiday season, as the retailer did last year.  Macy’s strategically partnered will Deliv and launched same-day delivery in 8 major US cities, which included San Francisco, Los Angeles, San Jose, Seattle, Houston, Washington DC, New Jersey, and Chicago.  Sister company Bloomingdale’s followed suit and launched the service in San Francisco, Los Angeles, San Jose, and Chicago also.  Selective cities for the service have the demographics and sales volume for same-day delivery to grow steadily.  Technology is having its’ part in fast delivery because shoppers have ease of access to online ordering and it will only increase in the years to come.

Macy’s is racing for good reason.  Google is on the move, as well as Amazon, which recently rolled out free same-day service in California to Prime Members.  The retailer has stated that more major US cities are to come, including the San Francisco Bay Area, Baltimore, Boston, Dallas-Fort Worth, Indianapolis, New York, Philadelphia, Phoenix, San Diego, Seattle-Tacoma, Tampa Bay, Washington DC, and Atlanta.  There will be more than 500 cities and towns included at the launch in the future.  Overall, the competition is growing, as companies like Uber engage in testing different delivery innovations in major cities as well.

In spite of what other companies are doing, Macy’s is focused on capitalizing on the advantage of having multiple department store locations.  This results in easy last-mile deliveries to their customer’s front door.  This is the difference with web-based retailers that physical store retailers have the ability to do.  Some of them partner with a same-day courier like 1-800 Courier to deliver online or in-store orders.  The New York Courier has a track record of supplying logistical expertise and courier delivery methods that create optimal logistic solutions.  As Macy’s expands with their delivery provider, other retailers can use 1-800 Courier’s national footprint and do the same.

Reference:  8.5.15, USA Today, Hadley Malcolm, Macy’s expands same-day delivery