January 28, 2013
When I moved to the United States in 2005, there were a few things I knew about this country, especially growing up in the shadows of the richest dream filled nation. As an entrepreneur, I aspired to live the American dream, and enjoy the freedoms of entrepreneurship. Freedom however isn’t solely about constitutional rights, it’s about choices, and with a capitalistic economy, meant corporations were able to provide unlimited choices to enhance their buyers’ experiences.
It is no surprise to me the discussion of same day delivery for retailers, especially from American corporations. Americans are busy people, moving quickly to get to the next facet of enjoyment. While according to Entrepreneur Magazine, FedEx is one of the top 10 most recognizable and trusting brands in America. People love getting their purchases quicky, and FedEx solved this issue with overnight delivery. However, in today’s information age, this can be much more quickly, in a matter of hours. Unfortunately for FedEx, their entire distribution network is set up for Overnight and beyond. The country’s little courier network of 11,000 Same Day delivery companies can collaborate and provide Same Day Delivery of almost any type of item in the United States.
This means any mom and pop shop can in theory offer Same Day Delivery from their website purchases.
This means Retailers with brick and mortar locations can ship from their stores.
We conducted a survey in the United States that has a 3% +/- margin of error. We asked 1100 American consumers about their willingness to pay extra for Same Day Delivery over our perceived notion that standard delivery is free.
An overwhelming 48% of American consumers are willing to pay at least 25% more for Same Day Delivery versus the current overnight charges.
Interestingly, 71% of American consumers are willing to choose Same Day Delivery all the time if the price is the same as overnight delivery.
NAPAREX can provide retail Same Day Delivery for roughly the same price as overnight because of the efficiencies in the delivery network.
Truth is the idea of Free delivery has corrupted Americans. Nothing is free, and the delivery price is paid for by the retailer or ecommerce store. Still, 28% of Americans are not willing to pay a premium over free shipping. However, free shipping is no longer a competitive advantage.
Taking a closer look into the needs of Americans, not all purchases require same day delivery from buyers. We considered all the various types of products purchased from local retailers; such as Food Products, Hard Goods (applicances/ electronics / furniture) and Soft Goods (clothing and consumables).
To our surprise, WANTS are more important now than our NEEDS
Over 60% of respondents said they would NEVER choose same day delivery for FOOD products, however 75% of respondents said they would choose Same Day Delivery with a 25% for their hard goods, at least when they were in a pinch. A surpringling 6% of respondants claimed they would always choose same day delivery for hard goods with a 50% premium, where only 2.4% claimed they are willing to pay a large premium to have their consumables delivered Same Day.
While this may be a surprise, we can understand this phenomena through studies of our satisfaction received by people and things. People want their WANTS met now.
This is an interesting point. As we navigate and grow our retail same day delivery business, we are partnering with retailers that sell consumer wants, such as Electronic Retailers and Warehouse Stores. Consider this graph.
An impressive 47% of respondants are willing to pay a premium for Electronic deliveries same day, meanwhile only 23% are willing to pay a premium from their Health Food stores.
I recall a power adapter on my PC going dead, and how my business day was once curtailed because I had to drive to Best Buy to make the purchase. First hand, I understand the need to pay a premium to get my products quickly, however in my case, this was a need.
On the other hand, consider Apple. What other company has the public and the press waiting breathlessly for each new product release? The bottom line is whatever that new Apple product is, consumers trust that it will be smart and sleek and that it will improve the way they communicate, work or spend their leisure time. What’s more, they’ll enjoy the experience of making the purchase. This is American Electronic Capitalism working in the minds of consumers. We want our new toys NOW.
In the above mentioned article, I was surpsised to notice the #1 most trusted Brand in America was Amazon. It’s also no surprise they are the leading retailers offering Same Day Delivery. Considering their success on innovation towards American shopping experiences, it was evident other retailers would begin to follow.
How about Google? They are entering the game of providing Same Day Delivery solutions to local businesses now.
Then of course Amazon’s largest competition, Ebay. Retailers like Macy’s, Toy’s R. Us and Target have begun testing this concept of delivery.
Geographical barriers exist because Amazon had built warehouses far from major cities to avoid charging sales tax in certain states. But it has now given in on the sales tax fight, and in return, is erecting warehouses near cities like San Francisco, which analysts say is paving the way for faster, more widespread same-day delivery and spurring competitors. This is still a challenge for Amazon.
Brick and Mortar Local begun to die with ecommerce. Geography can save the Local Business.
Fact is, travelling 15 miles, or 50 miles is costly to move thousands of pounds of metal, at rising fuel prices for a $90 purchase of a power adapter. Best Buy is 4 miles from my office. This is the benefit of Brick and Mortar.
Retailers need not ship from their warehouses, but integrate inventory from their retail locations.
Imagine Walgreens, with over 7,700 stores around the country. This is a distribution network prime for Same Day Retail Delivery.
The Internet has Localized our Communities
I’ve said for years Google is making businesses better businesses. While I’ve been studying the Google Algorithm for at least 7 years, almost 80% of Americans use the Google Search engine for find information, and 97% of that group uses Google to find local business information.
That’s a lot of people, and quite the influence a search engine has on the national economy. Truth is, Google algorithm has enormous influence on the American economy. Considering an item of click through rate (CTR), if your business is listed #1 in Google Local, you’ll get 40% of Google’s traffic to your website. If you’re on page one, spot #4, your traffic drops by 400%. Don’t even think about a click on the bottom of page one.
It’s clear why an understanding of their algorithm is critical, I help thousands of small businesses rank #1 on Google through my Chicago based Search Marketing firm. Truth is, beating their algorithm is not an option. Giving them what they want is critical, and in a nut shell, Google wants to see solid marketing, period.
With the changes in the Internet to localize a community, the existance of the second oldest industry, development of wireless communication, it is time for Brick and Mortar businesses to take back their market share that ecommerce stole.
A search for [Flowers] for example renders what we call a ‘local search’. I could include a geo-mod, such as ‘Chicago’, however Google is now smart enough to know where I’m located and provides the best choices for flowers based on my location.
It’s clear Google would want to provide local in-person choices for [power adapter], local delivery choices and of course e-commerce choices.
This is local. This is word of mouth. This is marketing for these businesses. It’s clear to me, that local businesses that enhance their consumer value by offering same day delivery will simply provide consumers with greater value, greater options, and in turn, a better buying experience. In turn, this will only further help achieving higher rankings in search, by bringing the consumer engagement to the digital world.
If you are a retail manager, owner or executive and would like to gain access to our research or speak with someone about offering Same Day Delivery for your retail location, please contact NAPAREX CEO, Monte O’Hara at firstname.lastname@example.org.
August 30, 2011
Nordstrom, Inc. is the most recent upscale department store chain to announce they will be offering free standard shipping and free return shipping on nearly all orders placed on their website. This is a great improvement from their previous offer of free standard shipping on orders over $200 or more. Nordstrom, Inc. is in good company; other retailers such as L.L. Bean and popular e-retailer Zappos.com are also present on the expanding list of e-retailers offering free shipping as a standard.
Nordstrom and the multitude of other retailers offering free shipping are taking a step in the right direction. Online shopping is only going to continue to grow in popularity; the convenience and ease of e-commerce retail coupled with Generation Y’s prominence in the industry will only increase the percentage of transactions completed online. A retailer offering free shipping is given a quick edge over the competitor.
The edge that retailers like Nordstrom are missing, however, is the offer of same-day delivery. Stores like Nordstrom, Macy’s and Bloomingdales have prime locations in major metro areas and yet they have not taken the opportunity to offer same-day shipping within those areas. The average consumer is getting used to getting what they want as quickly as possible and retailers need to capitalize on that. Even if the potential customer isn’t making a last minute purchase the idea of having their brand new hand bag or new pair of rain boots only 2-hours after they order makes any extra cost for shipping seem reasonable; that is a serious edge for online retailers.
August 17, 2011
Logging into Facebook, Twitter, LinkedIn and Google+ is a daily activity for a large portion of Americans; these social platforms provide users the opportunity to engage with friends and family and in Twitter’s case…celebrities! But what many in the business world are failing to realize is that these users are also looking to provide feedback and communication for services they use, restaurants they frequent, products they order, etc. While these social networks used to be an additional avenue of marketing for the business world…it has now become the norm!
Your customers are expecting your website to have links to your Facebook and Twitter pages. Many consumers are “liking” their favorite businesses in an effort to receive “perks” that many companies have begun to offer via social websites. Social websites provide a transparent avenue of communication between business and consumer; the consumer is taking advantage of it…businesses must too!
While many businesses have caught on that social pages are an expected extension of their company many more have created the page just to leave it without updates or communication. Customers are looking for engagement. They want to know what is happening, specials, staff changes, new products, etc. Social networks have even begun to form as another place for customer service; consumers will prefer to comment with their questions instead of calling or emailing and they will expect a relative speedy response. If you give these social networks enough attention they begin to sell your company in their own way; suddenly you will have a page with built-in reviews and testimonials. Even a customer’s bad experience can be made positive when your company quickly responds to correct the situation.
Social media is free and beneficial and it refuses to be ignored. So start engaging and have some fun with it! And if you have yet to buy into the “social media” world, check out this video. Lots of interesting facts!
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August 5, 2011
Online retail sales numbers for the month of July increased 14% from the same month in 2010. In addition to that, July 2011 marks the ninth consecutive month that e-commerce has posted double digit gains according to a SpendPulse report from MasterCard Advisors. While those in the e-commerce world should be celebrating the sales numbers, many want to explore the reasons for this increase first!
It seems high gas prices and a stifling heat wave are being credited for the most recent rise in numbers. Customers are finding that the costs to drive to retail stores to make their purchases are greater than the shipping charge while those in walking distance or within a short driving distance did not want to brave the dangerous temperatures to do their shopping. These are valid reasons for an increase in these number but the fact is that there is not a more comfortable shopping experience than from the comfort of ones own home, office, dorm, etc.
Online retail offers so much more than a single store. For example, a customer might decide one Saturday that they are looking for a tennis racket. They know there are a certain number of stores they can explore and by the end of the day they will probably come home with a tennis racket. Chances are, if they explored the online retail world for the same item, they would have been presented with an incredible number of options which would have included the opportunity to check price comparisons, customer reviews, performance reviews, detailed descriptions, options for colors, accessories to match, I could go on and on. Even customers who are in the market for clothing are finding that “free shipping” option when spending a set amount of dollars are making it easier for them to order an article of clothing, try it on at home…in front of their own mirror and decide if its “a keeper”.
There are only a few reasons for customers to travel to physical retails locations anymore and one of the more significant reasons is that sometimes a customer needs a product the same day they shop for it. Amazon has realized the benefits of same-day service but retailers like Target, Walmart and Sears haven’t taken the steps to offer any of their products for same-day delivery. It is difficult to grasp their reasoning. A service that offers a customer the opportunity to buy a housewarming gift on a Friday morning and have it wrapped and delivered to their work by 4pm, just in time to head out the door for a friend’s housewarming party, is invaluable. There are so many opportunities for a same-day delivery service in to thrive in the e-commerce world and the increase in online sales numbers will begin to catch retailers’ attention.
March 9, 2010
A courier service is an organized business that provides a unique delivery experience of packages and documents that range in size from an envelope and multiple skids. A courier service is typically much faster delivery time than other methods typically provided by companies such as DHL, FedEx and UPS. The courier service industry is a fairly robust industry in the Western world with over 11,000 courier businesses in United States of America. Courier service industry is one of the oldest industries which has been around since the need to deliver messages over great lengths. In today’s world of international business, a courier service is a pivotal to we used in everyday business. Services such as the fax machine enough of simply complemented the great need of delivery or physical products.
Courier service industry in the United States is a $59 billion industry and the largest player being United Parcel Service delivers more than 1 million packages globally each day. The average courier company in the United States does approximately $2.5 million a year in volume. The courier service industry in the United States is a very fragmented industry that has failed consolidation of several attempts. There are little barriers to entry into this business with very little government intervention compared to other regulated industries.
Most courier companies in the Western world use independent contractors move packages. It is estimated that up to 80% of businesses in the United States use independent contractors were delivered. These independent contractors utilize their own vehicle to make a direct route of delivery and get paid a percentage of the revenue. They are typically responsible for all their own expenses and essentially an independent contractor is running their own business.
Companies that use a courier service range from attorneys two major parts manufacturers. Consumers are beginning to utilize courier services deliveries and white glove delivery is from retailers and e-commerce stores. Courier service industry can move practically any package across the country in the same day and many couriers are beginning to offer national retail distribution.Â This industry can also deliver and set up furniture, goods, electronics and other products through a service called white glove delivery.
By utilizing multiple couriers and other cities, integration of technology, and existing infrastructures such as the commercial airline industry, a national network has been created compete with the overnight carriers and offer same-day delivery in the United States.
With the increasing demand of consumers, courier service industry is poised to join the retail and e-commerce industries. Online retailers like Amazon, offering their local express delivery service, have begun to provide same day delivery to their customers.
With increasing technology, courier service business and provide electronic tracking via GPS with electronic signature capture from the point of pickup through the point of delivery from any point in the country. This means that customers and track their packages and real-time and receive real-time delivery and pickup notifications. By utilizing existing wireless technology, existing commercial infrastructures such as the commercial Airlines, and existing courier businesses with independent contractors, this industry and deliver the same quality of service is the major players with their own network.
November 19, 2009
Although Amazon has emerged as the most powerful bookseller in the world, they do retain a certain amount of healthy competition from their brick and mortar rivals. Physical bookstores typically do even better against the online giant as we get close to the holidays, and people have less time to accommodate long shipping times.Â They call this service Local Express Delivery.
Amazon has come up with a strategy to make shopping even more convenient for last minute Christmas shoppers by offering a same day delivery option in major centers. This newest service is only currently available in seven cities, but three more will be added shortly. The cities the service is currently available in include Washington D.C., Las Vegas, Baltimore, Seattle, Boston New York, and Philadelphia. The first expansions to the service area will take place in Indianapolis, Phoenix, and Chicago.
For many people, the worst part about last minute holiday shopping is having to contend with the throngs of people that are out picking up last minute gifts. This is something they will be able to easily avoid with this new same day shipping option from Amazon. The offer is going to extend as late as 1:00 PM Christmas Eve, making last minute shopping from your home computer simple.
The prices of the new service will differ depending on the type of account that you have with Amazon. Anyone that is an Amazon Prime Customer will only have to pay $5.99 per item that they want shipped the same day. While others will face higher rates, they will still get the same quick turnaround time on shipping.
The best thing about the newer service is that it is going to open up the usefulness of shopping online in a much more practical way. The problem with the online method of making purchases is that most sites always require you to wait to get your products, something that has driven many people out to a brick and mortar store. That barrier is now being removed.
The only problem that people have so far with the service is the amount that it costs to get this same day service. A Goldman Sachs analyst by the name of James Mitchell does predict that those prices will be dropped in the future though. Once more people become aware of the new service and their shippers are able to keep up with the demand, the price for this same day shipping should become more accessible to the average shopper.
October 27, 2009
E-commerce and same day shipping are two industries which are beginning to merge in several ways. Knowing about the systems that are in place and the changes that are coming is important for anyone involved in either industry. Armed with knowledge, a company is better suited for tackling and making the most of the coming changes.
- There are companies that offer same day shipping throughout the majority of the country. That means that a customer can place an order for courier serviceÂ and, within 24 hours, have their order delivered into their hands. There are several companies that offer this service. A good example is Naparex, which can be reached at 1.877.577.1603.
- The same day courier industries combination with the e-commerce industry relies on using different technologies simultaneously. Airline travel, transportation logistics, wireless communications, and secure online shopping are all important parts of this equation.
- Speed of communication is key to the way these industries are coming together. It can take literally only minutes for a customer to order a product online. A few more minutes, and the company has contacted the courier to ship it. A few more, and the courier has wirelessly dispatched their delivery team. Then it is only a few hours and the delivery is complete.
- Software is an important tool to a same day delivery company. A courier software like Xcelerator allows them to wirelessly dispatch their drivers to begin making a delivery immediately. They also enable functions like signature capture, a useful feature for many e-commerce shippers.
- Local ExpressÂ DeliveryÂ companies use a number of resources to ship a single product. They will use airlines to ship goods that have to travel the length of the country. They also use vans, cars, and bike messengers. It is the combination of all available methods that makes prompt shipping so possible.Â Couriers join in a courier social site called Couriers of the World.
- The courier drivers working for a same day courier like Naparex are actually independent contractors, not employees of the company. This opportunity provides over a hundred thousand jobs across the country.
- Bike messengers might seem like a small part of same day transport, but they are essential. They can make fast deliveries in the bustling downtown cores of any city. Any same day courier is going to have an important portion of their group of couriers made up of bike messengers.
- Amazon is the largest online retailer to announce a new system of same day shipment to their customers. This service is going to be called Local Express Delivery. Local Express Delivery is going to expand in the near future, but is only going to be available in seven cities initially. Boston, Philadelphia, Baltimore, Las Vegas, New York, Seattle, and Washington DC will be able to use this service.
- Convenience and speed are the two things customers want most. As a result of this inevitable merging of industries, they are now going to have access to the best combination of both factors ever made possible. By using a great same day courier, any e-commerce business can meet those consumer desires.
- If you donâ€™t want to be left behind, you will find a reliable courier company to help you achieve your goals of same day delivery for your customers. Within the next two years, many E-commerce businesses will be jumping on the bandwagon. If you want to compete, be one of the first.