The Office of Inspector General at the USPS found the USPS isn’t threatened by the rise of same-day delivery, determining it is a niche, costly model appealing mostly to urban millennials and only represented 2% of all parcel deliveries in 2018. The IG report also recommended the USPS continue to focus on next-day delivery services.
Consumers have gotten more comfortable ordering bigger, bulkier items online and having them shipped to their homes, covering categories like furniture, home improvement products and housewares. This is now coming at a cost for shippers, especially as the rule has changed for additional handling charges from FedEx and UPS.
A month after prohibiting third-party sellers from using FedEx Ground and FedEx Home for Prime orders due to alleged on-time performance issues, Amazon is now saying they’re back on the nice list. Amazon said the performance issues have been resolved to its satisfaction, allowing 3P sellers to use the services again.
Walmart is expanding its fleet of shelf-scanning robots, adding 650 this year for a total of 1,000 as it looks to address nettlesome grocery out-of-stock issues and battle competitors with the technology like Ahold Delhaize’s Stop & Shop, Giant Eagle and Schnuck’s. It has also launched a micro fulfillment center at a New Hampshire store.
A federal court judge issued a restraining order on New Year’s Eve that temporarily exempts 70,000 truck drivers from the Jan. 1 implementation of California’s new gig worker law AB5, after a legal challenge from a trucking group. The group contends AB5 was preempted by a 1994 federal statute; a hearing is scheduled for Jan. 13.
It is the synthesis of things Amazon does so well that makes it seemingly invulnerable. To me, trying to beat Amazon on just logistics without a symbiotic combination of brand, merchandising, marketing, technology and a financial war chest is just pure, unadulterated sophistry. Is there such a thing as an effective anti-Amazon strategy?
A seeming disconnect between fewer last-order promise dates and faster holiday delivery times is explained by the rising popularity of buy online, pickup in store, according to an annual survey from Kurt Salmon. This season, 53% of retailers didn’t offer a last order promise date to avoid disappointing customers.
From the Amazons and Alibabas of the world, to B2B suppliers like Grainger and Readerlink, to other niche and specialty suppliers and retailers, delivery is a crucial component of any ecommerce company’s success. Here are three steps ecommerce companies can take to ensure they don’t crack under the pressure to deliver in 2020.
Target’s new last-minute delivery deals and deadlines for holiday gifts has it going head-to-head with Walmart over whose fulfillment is faster and more accommodating for shoppers. Both retail giants offer free two-day shipping, but Walmart has the edge in guaranteed delivery by Christmas for ultra-last-minute shoppers.
Amazon is telling 3P sellers they can’t use FedEx Ground for Prime deliveries this holiday season, citing performance issues, according to the Wall Street Journal, saying the policy will remain until there are improvements. UPS and other carriers stand to benefit in the short term if they can find room in their networks.