It takes a strong, complete supply chain for retailers get their product into their customers’ hands, especially when it comes to offering Same-Day Delivery.  Every aspect is critical to not only launching a prime service as this, but having the right systems in place to maintain it.  What strategy is being made known now is that warehousing within the supply chain channel is currently a valuable commodity.

Warehousing is becoming the bedrock of online retail because of same-day delivery and its’ impact.  The industry is accounting for 20% of warehouse space, according to Retail Dive via Bloomberg.  When the expected growth of online retail itself is accounted for, which is $500 billion by 2018, e-commerce is going to cause warehousing operations to not only thrive, but become even more sophisticated.

The article mentioned that the renting of prime warehouse space rose 9.9% in the US last year.  There were  six US markets among the nine total that had the biggest increases worldwide–Oakland being the highest at 29.8%, and it was also seen in Northern New Jersey, according to real-estate brokerage firm CBRE.

CBRE’s head of industrial and logistics research for the Americas, David Egan, told 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.” Close-proximity warehousing adds value to retailers, especially with replacement deliveries, error shipments and even routing services for business-to-business customers.

Warehousing has been what Amazon already had envisioned years ago before same-day delivery became in such a high demand.  The e-retail leader strategically planted multiple order fulfillment centers in close proximity to major US cities, prepping it for the boom in e-commerce to come.  Now, last-mile deliveries have become almost effortless for Amazon, establishing 27 major US city markets in which it provides free same-day delivery.  Eleven of them were added this year, which included Sacramento, Stockton, Charlotte, Cincinnati, Fresno, Louisville, Tucson, Milwaukee, Nashville, Raleigh, and Richmond. The nationwide same-day delivery coverage is inevitable by Amazon, and other nationwide retailers are aggressively in pursuit.

Because of the entrance of same-day delivery, e-retailers and brick-and-mortar stores won’t be able to keep pace with the traditional, centrally-located warehousing systems.  E-commerce has created a market at the fingertip of shoppers and online fulfillment must be just as close. Even the emergence of tablets, smartphones and tech gadgets has resulted in convenience, as well as a heightened retail competition. Price is not the only thing that matters.  Shoppers want service.

Once the warehousing is in place, it is of matter of who can get their product consistently in the hands of customers on time. Physical store and web-based retailers Same-Day Courier like 1-800 Courier to fulfill online order deliveries from their warehouses.  The Sacramento Courier has the courier expertise and technology to develop an optimal same-day solution, whether locally or nationwide. Just like Amazon, retailers can build a same-day delivery program customers trust and will remain loyal to buy from them.

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

No retailer has expected Amazon to expand Same-Day Delivery as it has, revolutionizing e-commerce and business trends.  Amazon’s precise and efficient logistical delivery systems has resulted in a higher shopper comfort level, causing the e-retailer to rapidly expand online.  Its’ current same-day delivery program is now expanding also.

In a recent report by Forbes, Amazon has announced that it has officially launched free same-day delivery in 11 more US cities.  Those major cities include Sacramento, Stockton, Charlotte, Cincinnati, Fresno, Louisville, Milwaukee, Nashville, Raleigh, Richmond,  and Tucson.  Prime members that place their orders by 12noon, will receive their items by 9pm the same day.  The service is available 7 days a week also.  Normally, same-day delivery will have a substantial window-time in order to make sure all deliveries are made on time.  Yet, Amazon even has Prime Now, which delivers online purchases within two hours.  The demographics and infrastructure of major US cities helps create effective same-day delivery programs like these.

The other previous cities that already have free same-day delivery include the San Francisco Bay Area, Seattle-Tacoma, Dallas-Fort Worth, San Diego, New York, Philadelphia, Indianapolis, Phoenix, Tampa Bay, Baltimore, Boston, Washington DC, Chicago, Atlanta, and Orlando.  Amazon also rolled out free same-day delivery last year in 14 metropolitan cities the US, starting with California cities.  The robust retailer has its’ sights on nationwide same-day delivery, and at this pace, Amazon will have it done within a few years.

Amazon Vice President of Prime Greg Greeley said in the article, “Prime was developed to make shopping on Amazon fast and convenient, and millions of members have used Prime FREE Same-Day Delivery to make their lives even easier.  We keep making Prime better, and as our operational capabilities grow, we will continue to invent and expand delivery options that customers love.”  The retail leader’s Prime fee can account for between $4 billion and almost $6 billion in revenue annually, based on estimates in the range of 40 million to 60 million members.  It makes sense that Amazon is after making Prime bigger and bigger.

Earlier this year, Amazon even raised its’ minimum online order amounts for non-Prime members from $35 to $49 to qualify for free shipping.  For about a decade, Amazon’s minimum order threshold was $25 until 2013, which when it first went up to $35.  Now, it’s locked in at an even higher amount.  The new threshold has been created in hopes to drive regular customers into being all in with Amazon and become actual Prime members.  The annual fee from Prime assures Amazon of customer loyalty and revenue, along with whatever it makes from sales.

With online shopping is expected to reach $500 billion by 2018, retailers need to get on board with creating the omnichannels to link in-store to online sales via same-day delivery.  Amazon is leading the way, as well as Google, Macy’s, and more.  Several companies partner with an efficient Same-Day Courier like 1-800 Courier to implement same-day delivery.  The Sacramento Courier is well-known for being able to launch massive roll-outs of the service on a national scale.  1-800 Courier has the courier expertise and technology that retailers are after to build a successful platform for same-day services.

Reference: 4.8.16,www.forbes.com, Amit Chowdhry, Amazon Adds 11 More Cities To Same-Day Delivery Service