Mike O'Brien
Mike O’Brien has worked in journalism, marketing and public relations for … well, quite a while. At Multichannel Merchant he focuses on the world of direct-to-customer operations and fulfillment, editing MCM’s weekly O+F Advisor newsletter, and programs the annual Ecommerce Operations Summit conference. Previously Mike was a senior account executive for Marx Communications, a boutique public relations firm working with marketing and advertising technology companies. Other past work includes stints as a media relations consultant for a concert promoter, a marketing communications specialist for a pharma software firm, a research analyst covering corporate e-learning and a daily newspaper reporter on every beat imaginable – except sports.
Amazon lost another skirmish in its ongoing multi-front labor war, as a federal regulator ruled Wednesday against its petition to have a successful union vote in Staten Island, NY vacated. At the same time, the International Brotherhood of Teamsters is heating up rhetoric ahead of the expiration of its contract with UPS on July 31.
Buy With Prime, the program that lets retailers not named Amazon offer shoppers the Prime experience and promise, is rolling out for all U.S. merchants as of Jan. 31, the company announced, ten months after a beta launch by invitation only for select users of Fulfillment By Amazon.
Bed Bath & Beyond as expected posted a tough third-quarter report, with net sales and same-store sales down a third from last year and a net loss of $393 million as it considers a range of options up to and including a Chapter 11 bankruptcy filing. CEO Sue Gove said the company is listening to customers, but it may be too little, too late.
Boxed, the once high-flying online warehouse club that set out to be the ecommerce equivalent of brick-and-click competitors like Costco, Sam’s Club and BJ’s, is now exploring strategic alternatives, which euphemistically means looking for a buyer. And Amazon acknowledged an expansion of its corporate layoffs from 10,000 to 18,000.
Depending on who you believe, domestic holiday retail sales were up 6% to 8%, which should cause retailers to do backflips, considering the state of the economy. But the rate of ecommerce growth was slower, reversing a trend from past years, with online sales up 3.5%, as the stores became the story.
The three major parcel carriers had a decent peak holiday season in terms of on-time performance, with service levels comparable to 2019, according to ShipMatrix, not surprising as volumes were lighter even though holiday sales increased, as many shoppers returned to stores. FedEx saw a significant improvement over its 2021 showing.
UPS for the first time is extending its peak surcharges for residential delivery beyond the usual mid-January cutoff, referring to them as by the new designation of “demand surcharges” which will be in place until further notice, while FedEx is not following suit but letting them lapse.
Taking advantage of a growing preference for boxless returns, FedEx is rolling out a consolidated returns program early this year aimed at providing the service for small-to-medium-sized merchants in addition to major retailers. While FedEx has a relationship with Happy Returns, it provides all the logistics for this new offering.
Amazon, facing a continued slowdown in its ecommerce business and under pressure to boost flagging sales, is looking to sell excess capacity on its commercial cargo jetliners used to move goods among its network of warehouses here and in Europe. Meanwhile, both Amazon and Walmart announced multi-state drone delivery.
If any sector was ever ripe for consolidation, it’s third-party logistics (3PL), with literally thousands of companies plying their trade, looking to help retail shippers outsource fulfillment, storage, shipping and other operational aspects. Well, 2022 got us at least part of the way there. Here are some of the deals that got done.