Tag Archives: San Francisco Courier

Amazon Removes Upfront Fee for Amazon Fresh

same day deliveryWhat more could Amazon do at how they continue to advance Same-Day Delivery in all of the facets of their services.  The e-retailer is making the right moves at the right time.  Now, its’ recent adjustment to AmazonFresh could be just what it needed to make more shoppers buy into it.

Amazon has announced that it will adjust its’ pricing model for AmazonFresh, as it begins an initiative to attract customers and grow sales.  The same-day grocery service, which use to be $299 per year, will now be only $14.99 per month for existing Prime members only.  This equates to $179 per year, which is a $120 difference for AmazonFresh, in addition to Prime member subscription costs of $99.  Therefore, for $279 annually, Prime members can have it all, instead of the $299 for AmazonFresh alone, which some felt was steep. The new pricing could potentially gain momentum for AmazonFresh as the holiday season begin, as well as the e-retail leader enters the new year.

The change in fee structure could be a sign that Fresh is stabilizing and poised for more aggressive expansion,” said Keith Anderson, vice president of e-commerce analytics startup company Profitero.  Anderson went on to say, “This is supported by how prominently the new fee is being promoted on Amazon’s homepage in markets where Fresh is available.”  The article mentioned that some feel the high pricing was purposefully done to limit demand, while Amazon worked out the economics of the service.  Either way, Amazon is certainly in the driver’s seat when it comes to same-day grocery delivery.

Another comment in the article was by Anderson regarding what the move means for Amazon in the future ahead.  He stated, “This positions Fresh much more favorably.  An incremental, annual $199, paid up front, was unprecedented and a huge hurdle for mainstream households to commit to, even if Prime members skew to affluence.”  Usually low upfront fees for a valued-added service like fast delivery is much more attractive to shoppers.  This is why most retailers offer very affordable costs and then compensate by the sale volume they receive.

One example is what Wal-Mart has decided to do with subscription fees for its new ShippingPass service.  In July, Wal-Mart began piloting the program, offering free shipping with two-day delivery to draw in shoppers, in addition to its’ low annual fee of $49.  This is specifically designed to aggressive compete with Amazon, being half the price of Prime at $99.  Customers are able to get the same products they can buy from Amazon such as clothing, electronics, health products, and more via Walmart.com.  The online items with the ShippingPass logo next are eligible for the service.

A lot of retailers are taking note from not only what Amazon is doing, but how the retailer is doing it.  For same-day delivery, one viable option is to partner with a Same-Day Courier like 1-800 Courier to implement the service in major US cities and better compete online.  The San Francisco Courier has the courier technology and expertise to quickly create same-day logistic solutions for any retailer delivering groceries, online products and more.

Reference: 10.7.16, www.recode.net, Jason Del Rey, Amazon finally just proved it’s very serious about grocery delivery

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

Sidecar Launches Same-Day Delivery

Courier ServiceA 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