Tag Archives: Same Day Courier

Argos Goes Same-Day Delivery Across the UK

Courier ServiceThere is a lot of movement in the retail industry toward making same-day delivery a staple in service offerings.  It’s imperative for physical store and web-based retailers to implement a fast delivery option, which may be considered out-of-the box for some companies.  However, when big name Amazon, Google, Macy’s, and others continue to add same-day delivery to more and more cities, it is only a matter of time that businesses will have to follow their lead in order to stay competitive.

UK high-street retailer Argos is not waiting to jump into same-day delivery.  It has recently announced the launch of the service throughout the UK weeks before Black Friday is here.  Argos’ Fast Track delivery is its’ fast service which will used for 20,000 products this week.  The article mentioned how Argos’ flat fee of £3.95 undercuts Amazon’s Prime Now at £6.99 per order.  Amazon also only delivers in certain London postcodes and its’ service is £79 a year for its Prime scheme.

This is in large part to the robust growth of Amazon and Argos has to compete.  Sophie McCarthy, a retail analyst with Conlumino, commented in the article regarding Argos’ decision to roll out same-day delivery.  She stated, “This has the potential to be a serious game changer, not only for Argos, but for the wider UK retail market as retailers increasingly chase fulfillment as a competitive weapon.  There is no doubt that the introduction of a same-day delivery service for as little as £3.95 is going to be an expensive business for Argos, but the costs of it not competing on delivery are likely to be even higher – its last trading update revealed further sales declines as it struggled to evolve its traditional catalogue to fit the demands of the modern consumer.”

Indeed Amazon is going to continue to expand in the UK, globally and even in the US.  The retailer leader Amazon is also offering same-day delivery free in some cities in California, which included 14 Los Angeles metropolitan cities earlier this year.  Amazon’s same-day delivery is currently in the San Francisco Bay Area, Baltimore, Dallas-Fort Worth, Indianapolis, Boston, New York, Philadelphia, Phoenix, San Diego, Tampa Bay, Atlanta, Washington DC and in its’ hometown of Seattle.  Free delivery may not only be planned for these cities in the US, but also a model for service worldwide.

Argos definitely has a fight on its’ hands when it comes to facing Amazon in the UK.  So do retailers in the US as well.  To implement same-day delivery quickly in the US, a Same-Day Courier like 1-800 Couriercan help on a massive scale.  The Houston Courier has a national footprint and the expertise to build a fitting delivery program to optimally fulfill online orders.  A number of retailers that offer same-day delivery are partnering with a courier to do it for them, especially web-based ones.

Reference: 10.6.15, www.theguardian.com, Rebecca Smithers, Argos squares up to Amazon with same-day delivery across UK

Trustev and Coldwell Banker Surveys Say Millennials Want Same-Day Delivery

Courier ServiceIt’s not a coincidence that big name retailers are beefing up their web presence and online retail.  From Google to Macy’s, millions are being invested into creating the omni-channels via same-day delivery necessary to make shopping online seamless for customers.  The reason why is that online retail is forecasted to hit $500 billion by 2018 and certain customer age groups will have a lot to do with that the growth, particularly the millennials.

New survey findings show that the millennials have a say in driving same-day delivery to becoming a staple service among retailers.  Multichannel Merchant reported that fraud prevention firm Trustev and Coldwell Banker Commercial Affiliates performed two surveys that showed that millennials want a fast shipping option.  Trustev’s survey found that over 56% of consumers between the ages of 18-34 expect for retailers to offer a same-day shipping option.  The age group is immersed in the use of technology and mobile devices in which they can do online shopping at the touch of a button.

With fast access, comes a greater demand to get the items just as fast.  As a result, Amazon, Wal-Mart, Macy’s, Toys-R-Us, Wal-Green’s, and more have all positioned themselves to supply a variety of same-day delivery service programs.  Coldwell Banker performed a similar survey that found 64% of the millennial demographic were more likely to make buy online if same-day delivery was offered.

Rurik Bradbury, CMO of Trustev, commented in the article, “They’re mostly digital natives, and the younger half grew up knowing nothing but online apps.  So we can see how their worldview has shaped those expectations. At this point we’ve had e-commerce for more than 20 years, but now there are a bunch of same-day delivery providers like Deliv and Postmates, built with this group’s real-time demands in mind.”

When discussing fraud for the quick turnaround times regarding same-day delivery, Bradbury stated, “A lot of famous brands, including a large higher-end clothing retailer, have told us they dread the push from executive management to do same day because it’s not possible with their current process.  The average retailer reviews 10% of its transactions, so to turn these orders around (while mitigating fraud) and not missing the one-day cutoff isn’t possible with current systems.”

What was interesting in the Trustev survey is that out of the top 50 retailers the firm researched, only Amazon and 1-800 Flowers offered same-day delivery as a standard shipping option at checkout.  Trustev only researched same-day delivery in Manhattan’s 10001 zip code, the same one of Trustev’s US office.  The fact of this low amount of retailers on board affirmed that the fast service, although gaining ground, is still not wide spread yet. However, when web-based retailers like Google and department store retailers like Macy’s expand frequently in major US cities, same-day delivery is going to become as popular and normal as next-day delivery.

With a same-day courier like 1-800 Courier, retailers can quickly implement same-day delivery nationwide and capture the growing market of the millennials desiring fast shipping. The San Francisco Courier has the expertise to handle the delivery side of online business as demand grows.

Reference: 9.24.15, www.multichannelmerchant.com, Mike O’Brien, Half of Millennials Want Same-Day Delivery, but Most Retailers Don’t Offer It

Etsy Announces Pilot Same-Day Delivery Program in New York City

Courier ServiceThere 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”.

The article mentioned how Etsy is looking to solve one of the biggest complaints from buyers and sellers in its’ marketplace, which is delivery time.  For a number of online retailers, this has become a vital aspect of gaining ground in sales and market longevity.  With a same-day courier like 1-800 Courier, web-based and physical store retailers can offer the on-time service options that online shoppers are looking for.  The New York Courier has a national footprint and can help a company like Etsy’s same-day delivery program grow.

Reference: 9.11.15, www.recode.com, Jason Del Rey, Etsy Will Test Same-Day Delivery Option in New York City

Google Launches Grocery Same-Day Services For Fresh Foods

Courier ServiceIt’s a race to the finish for e-retail, as Google competes with Amazon to see which company can efficiently expand same-day delivery nationwide.  At first it was your general online products that both retailers were delivering, but now same-day grocery appears to be the new, simultaneous pursuit.

Google hasn’t been in the running for fresh food same-day grocery until this week and has announced that it will be testing it later this year.  This will be a first for Google Express, delivering foods like fruits and vegetables.  The service will begin testing in will be the San Francisco Bay Area, which has been the common trial site for a number of web-based and physical store retailers.  It will be partnering with large grocery store chains like Whole Foods and Costco.

In other cities, like Atlanta, Whole Foods utilizes a Same-Day Courier to deliver foods bags and volume orders to businesses for a variety of in-house events.  These are big grocery stores that have the volume, and all they need is the demand to match, which Google will provide.  Wal-Mart offers same-day delivery in several US cities, including free same-day service in Canada to aggressively maintain a level of market share against Amazon Canada.  Since the retail leader is performing last-mile deliveries for its’ products, same-day grocery delivery makes sense, especially with its’ neighborhood market stores.

The idea is for a retailer to be close enough to shoppers physically, as they are online–being in arms’ reach of a customer’s door step and have the ability to respond when they place their order.  Google gains the reach to customers that it needs with its’ partners for grocery delivery.  It doesn’t have the physical store locations, however, Whole Foods and Costco does.  The short radius to deliver food items is even more critical than general household goods, electronics, and clothes.  Food has to be delivered within a few hours for it to be worth it to a hungry customer.

Google’s reason for deeper expansion into same-day grocery delivery is simple–AmazonFresh.  Amazon’s same-day grocery delivery service that is available in Seattle, Los Angeles and others, which more than likely will expand even more.  Free same-day service is now in Seattle and California.  More cities are set to be added, such as San Francisco Bay Area, Baltimore, Boston, Dallas-Fort Worth, Indianapolis, Phoenix, Philadelphia,  San Diego, Tampa Bay, Washington DC, New York, and Atlanta.

Retailers are moving same-day delivery into being a part of everyday consumer living.  Any online business seeking to compete will probably have to engage in some level of last-mile delivery in the future.  1-800 Courier is a Seattle Courier that retailers can partner with to implement a same-day program that will last, even for groceries.

Reference:  8.18.15,www.cnet.com, Richard Nieva, Google to test same-day grocery delivery service

Amazon Expands Same-Day Delivery To Seattle

Courier ServiceJust when other retailers thought they were getting a breather, Amazon comes again with additional growth with same-day delivery.  This time, it is Seattle’s turn.

Amazon has announced it is expanding same-day delivery into its’ very own Seattle.  Prime Now is officially in the hometown of the web-leading retailer.  The service is now available to be used for “tens of thousands” of products Amazon announced yesterday.  The Seattle cities that can use Prime Now includes not only Seattle, but also Bellevue, Redmond and Kirkland zip codes.  More zip codes will probably follow.

Prime members pay $99 per year to have free two-day shipping.  Prime Now is free for all members now, which is performed within a two-hour window.  One-hour delivery is available for $8.  Deliveries for the service are made between 8am and 12am local time, seven days a week.  Other e-retailers and physical store retailers that have engaged in same-day delivery have their various models, such as delivering all orders placed by 1pm.  Most of them charge for their services, from $5 and up also.

The article mentions how Amazon’s Prime Now is helping the web-based retailer to compete with big-box retailers like Wal-Mart and Target.  Wal-Mart is making heavy global web investments, becoming sole owner of China online retail leader Yahaodian. The company offers same-day delivery and next-day delivery.  With Wal-Mart’s acquisition, it will surely implement a service to compete with all of the Amazon growth.  Wal-Mart currently has same-day delivery in several US cities and free same-day shipping is available in Canada to prevent Amazon.ca from having  a hold on the market there.

Target has partnered with Google to perform its’ same-day delivery.  Its’ e-commerce running well and showing that Target is doing something right.  Target’s web sales are up 26.1% from this time last year.  Ship-from-store services is what Target has its’ sights on, planning to triple the number of stores that will fulfill online orders in the second half of the year from 140 to 450.  This service can easily be the platform for expanding the same-day delivery programs it already has in place.

Amazon said its’ service is allowing customers to “skip a trip to the store.”  Prime Now started last December and has greatly expanded since.  It has now rolled out free same-day service to Prime Members in California and Seattle.  More major US cities will be added, including the San Francisco Bay Area, Baltimore, Boston, Dallas-Fort Worth, Indianapolis, Philadelphia, Phoenix, San Diego, Tampa Bay, Washington DC, New York, and Atlanta.  At this pace, Amazon will be offering free same-day delivery nationwide.

A number of retailers have their own game plan to gain ground online.  Many are implementing same-day delivery by partnering with a same-day courier like 1-800Courier.  With its’ expertise, the Atlanta Courier can create efficient courier logistic solutions to help retailers thrive online.

Reference:  8.26.15, Yahoo News, Don Reisinger, Amazon’s same-day delivery comes to Seattle

Wal-Mart Global E-Commerce Could Lead To More Same-Day Delivery

Courier ServiceIf any retailer thought that Wal-Mart would be contained to excel with brick-and-mortar, they were wrong. A recent report showed that Wal-Mart’s e-commerce investments are paying off.  Global online sales grew 16% in the second quarter.  E-commerce did however experience lower full-year earnings per share Wal-Mart will spend between $190 million and $295 million on e-commerce this year.

“Our primary goal is to continue to accelerate Yihaodian’s core e-commerce business and maintain strong local Chinese expertise,” said Neil Ashe, CEO of Wal-Mart Global e-Commerce. “Now that we are the sole owners, we will be expanding our leadership team from within the Yihaodian business, from within Wal-Mart and from the e-commerce industry in China. We will also leverage Walmart’s global reach and scale to better benefit Yihaodian, including global sourcing. China is an exciting, dynamic, large and competitive market. We are excited about our long-term opportunity in China.”

In 2012, an article on TechInAsia.com highlighted a quote regarding Wal-Mart’s ultimate plans for Yihaodians three years ago. “It’s not just online clout that has attracted the US retailer to the Chinese online store. Yihaodian, since its inception in July 2008, has built a sophisticated warehouse and distribution network covering much of the country so as to offer same-day or next-day delivery. Walmart, as one of China’s leading bricks-and-mortar supermarket chains – along with France’s Carrefour (EPA:CA) – will integrate some of its own logistics with Yihaodian’s.” It appears Wal-Mart’s strategy is coming full circle, as now the retailer owns Yihaodian.

Wal-Mart is set to duplicate in the US what is working in China, including probably Same-day delivery.  Wal-Mart offers the service in multiple major US cities already and also competes with Amazon.ca, offering free same-day shipping in parts of Canada.  With Amazon expanding same-day delivery at such a fast pace, Wal-Mart is in a position where it has to implement fast delivery on a broader scale, just as a number of physical store retailers are doing.  Some retailers partner with a same-day courier like 1-800 Courier to deliver products from their stores within a matter of hours.

The retail leader will also have to look out because Amazon has announced free same-day delivery for Prime members.  It included several major US cities, including the San Francisco Bay Area, Baltimore, Dallas-Fort Worth, Indianapolis, Phoenix, San Diego, Seattle-Tacoma, Philadelphia, Tampa, Washington DC, Boston, New York, and Atlanta.  The launch involves more than 500 cities and towns, plus more cities to come.

The article also mentioned Wal-Mart opened two automated online fulfillment centers in the US, ready to meet customer needs for the holiday season.  Both will be larger than 20 football fields.  They will be the cornerstones of Wal-Mart’s fulfillment network, as well as two more centers this quarter.  1-800 Courier is a Philadelphia Courier with the national footprint needed to help Wal-Mart perform last-mile deliveries.  Overall, same-day delivery will become more essential to continue to thrive online.

Reference:  8.18.15, www.internetretailer.com, Sandra Guy, Wal-Mart says heavy e-commerce investments put a crimp on earnings; 8.15.12, www.techinasia.com-Reuters, C. Custer, Walmart Now Owns a Controlling Share of Yihaodian

Macy’s Moves Forward With More Same-Day Delivery Expansion

Same Day DeliveryFor 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

Will eBay Start Up Same-Day Delivery Again?

Same Day DeliveryWhen its’ time to pull away a business venture that isn’t profiting, you have to make the necessary adjustments sooner than later.  It appears eBay has found that its’ same-day delivery pursuit in the US needs to be shut down. Yet, will eBay turn to same-day delivery again?

A recent report talked about how eBay decided to throw in the towel after a three-year push. EBay Now fought against strong competitors like Amazon and Google that are in the same race. Former eBay CEO, John Donahoe, said the service is “not essential to our core target customer”.  CNet.com reported how eBay shut down the eBay Now app late last year.  EBay also has pulled three less popular apps — eBay Motors, eBay Fashion and eBay Valet — to cut down customer confusion and streamline attention to it’s primary eBay app.

CNet also highlighted an eBay spokeswoman regarding the scale back and ending of eBay Now. “We continue to explore a variety of delivery options such as buy-online-pickup-in-store,” an eBay spokeswoman said.  This isn’t anything new, in fact, a number of companies are opting to go the route of in-store pick-up.  Wal-Mart is one physical store retailer that not only offers same-day delivery, but also Wal-MartToGo.  The service offers customers the option of placing their order online, and then coming to the store to pick-up.  A Wal-Mart representative pulls the order and its’ ready upon arrival.  In Denver, Wal-MartToGo was tested for pick-up via curbside as well.

One reason eBay Now ended because the their products didn’t match in volume the types of products that same-day delivery thrives on. Shoppers utilize same-day delivery with groceries, diapers, and food orders, in contrast to eBay’s primary staples, such as collectibles, antiques and vintage clothing. Also, eBay stated that these same-day delivery networks tended to exclude eBay’s core smaller merchants, since many don’t have storefronts or warehouses.  Fast delivery needs volume to be successful long-term.  The result is a market that doesn’t fit eBay or its’ smaller merchants.

Web-based retailers like Google and Amazon have found a way to brand itself as companies that provide the everyday products shoppers want. Google Express in major US cities and is expanding. It has partnered with large brick-and-mortar retailers like Toys-R-Us, Target, BestBuy, Wal-Green’s,and more to get items in the physical stores right to a customer’s front door.  A same-day courier like 1-800Courier is who retailers have also decided to outsource the delivery aspect of the service.  The New York Courier has the delivery expertise to create optimal and efficient solutions.

Another hurdle for eBay will be Amazon if it decides to jump back into the same-day delivery race.  Amazon has launched the free service in several major US cities, including Baltimore, Dallas-Fort Worth, Indianapolis, Philadelphia, Phoenix, San Diego, Seattle-Tacoma, Tampa Bay, Washington DC, Boston, New York, Atlanta, and in the San Francisco Bay Area.  The roll out involves more than 500 cities and towns, plus more cities in the coming years.  This means eBay will have even more ground to cover if it enters back into same-day delivery with eBay Now.  EBay will have to step back and reevaluate whether it can achieve convenience for its’ customers with new products, yet in a different way.

Reference:  7.27.15, www.cnet.com, Ben Fox Rubin, eBay Now rapid delivery service shut down

Moms Go Mobile, Using More Same-Day Delivery Via Diapers.com

Courier ServiceMoms everywhere are starting to see the benefits of using same-day delivery for all of those countless baby needs at home, especially diapers.  The main tool they are using to get it done: their cell phones.  Yes, mobile shopping is on the rise by parenthood moms per Mashable news.  Mashable recently reported how Diapers.com is experiencing e-retail growth, thanks in part to plenty of mommies.

At different times of the day, or early morning, Diapers.com talked about how Moms are placing their orders and using same-day delivery.  “Moms send us stories all the time of nursing her baby at 3 a.m., realizing she’s almost out of diapers or some other essential, placing an order with us through our app, and having the package show up at her door later that day,” said a Diapers.com senior vice president of marketing and business development Michal Geller.  “Same-day delivery is a game-changer for busy moms.”  Indeed it is, in addition to all of the roll-off baby products, such as wipes, formula, baby food, and clothes.

In 2014, Diapers.com experienced a 50% increase of purchases via a mobile device.  This was a 25% spike upward from the previous year.  The rest of mobile sales within a multi-trillion-dollar US market only hit 1% according to TechCrunch.  The article also stated that the diaper market itself is expected to reach $52 billion worldwide by 2017.  Therefore, Diapers.com is a frontrunner in the industry and is prepped for more growth in the coming years.

One of the retailer’s keys to its’ popularity is its’ mobile app.  It has been heavily invested in, created with moms in mind. The Diapers.com app is very user-friendly, designed for one-handed use.  Also, a customer’s shopping cart remains connected to his or her account throughout the browsing process, even when toggling between a laptop and a smartphone. Moms appear to be finding their best friend when diapers or other items get low at home.

At home and work is where shoppers are placing their orders from the most, instead of on the go.  “Many of our customers cite that they place orders on their Diapers.com app while rocking or nursing their baby,” Geller said.  Diapers.com has also found that while smartphone use is increasing, tablet use is declining. In the past year, the percentage of total orders have “decreased significantly” in spite of its’ mobile growth, Geller said.

He also stated, “The modern mom — I see it from my wife and from my wife’s friends — the phone has become such a useful tool to have at her side and in her pocket and in her hand.  We’re going to continue to see growth in that area. We absolutely believe that the phone is mom’s co-pilot to some degree. To the extent that we want to be her best friend, we see those things go hand in hand.”

With online retail expected to reach $500 billion by 2018, Diapers.com has more incentive to invest more into same-day delivery and other retailers do as well.

To capitalize on this booming baby market, retailers can partner with a same-day courier like 1-800 Courier to handle their deliveries.  The Houston Courier is flexible and can be there for moms when they need that sudden baby item.  A national footprint and a vast, reliable dispatch network is all 1-800 Courier needs to help moms, as well as e-retailers and brick-and-mortar stores to thrive online.

Reference:  7.8.15, www.mashable.com, Adrienne LaFrance, Mobile shopping’s early adopters: New moms

Postal Service Expands Same-Day Grocery Delivery in New York

same day deliveryThe US Postal Service has jumped outside of the normal delivery of piece mail into same-day grocery delivery, in hopes to generate more revenue and profitability.  Internet Retailer recently reported that the USPS will begin extending Customized Delivery, the name of its’ grocery delivery service, on June 29th or shortly after that.  Testing of the service began late last year in San Francisco, delivering on the behalf of AmazonFresh in 38 various zip codes in that area.

The mail company performed filing to the Postal Regulatory Commission regarding the new venture.  The article mentioned the filing did not state the USPS will be delivering AmazonFresh orders in New York.  Yet, AmazonFresh was launched in in Brooklyn and Manhattan late last year, in addition to AmazonFresh Philadelphia.  Amazon has been working with the Postal Service for years now, even with performing Sunday deliveries.  The report stated via logistics consulting firm MWPVL International states that from 16 US sorting centers, Amazon groups packages by zip code and send them to the USPS, which the USPS then delivers.  This bulk shipping cuts Amazon’s costs versus going with UPS or Fedex, and at the same time, increases USPS revenue.
It does make sense for the largest e-retailer to partner with essentially the largest US mail delivery company.  Amazon deliveries large totes to postal locations between 1:30-2:30am, which then are delivered by postal carriers between 3-7am. The USPS has the capability and capacity to handle large, volume deliveries with its’ robust vehicle fleet and physical locations to match.  This suits the Postal Service’s ambitions for revenue growth and sustainability.  Two companies simultaneously can meet key needs .

Amazon will gain from the partnership a delivery system to handle its volume and quest for the next level of free same-day delivery.  The retailer recently announced the implementation of free same-day delivery in 14 metropolitan cities the US.  Its Prime members that make a $35 purchase by noon, will receive their online order by 9pm that same day free.  More than 1 million items, such as games, cooking tools, books, household goods, and electronics will be available.  The initial launch rolled out in California cities in the Southland, yet will be expanding into the San Francisco Bay Area and other major cities, including Baltimore, Boston, Dallas-Fort Worth, Indianapolis, New York, Philadelphia, Phoenix, San Diego, Seattle-Tacoma, Tampa Bay, Washington DC, and Atlanta. 

The Postal Service had $5.5 billion in loses in 2014.  Its main challenge is its government obligation to cover health retirement benefits decades in advance, which resulted in several past defaulted government loans.  Therefore, innovation is the key and the USPS appears to be headed in the right direction, as many other companies are doing to keep pace with new business trends.  Same-day delivery is becoming a staple service that retailers won’t be able to do without in the coming years.  A same-day courier like 1-800courier is a viable option to partner with to implement on-demand delivery services fast.  The New York Courier has the expertise and size to deliver items for any retailer in Atlanta, as well as nationwide.


Reference:  www.internetretailer.com, 6.22.15, Allison Enright, The Postal Service will deliver groceries to New Yorkers