USPS Postmaster General Louis DeJoy doubled down on the need for greater efficiency and performance, while enacting new measures. Also, the USPS reached an agreement in principle to receive a $10 billion loan from the U.S. Department of the Treasury under the CARES act, and created for the first time a loyalty program.
Fulfillment and Delivery
Buyers used to ask retailers when their item could be delivered. Now, they want to choose the in-home delivery time and track it online. That’s a somewhat new and difficult expectation for brands to meet. The good news is that sophisticated truck routing solutions are available to help merchants better manage in-home home delivery.
E-grocery sales continued to spike upward in June, increasing 9% over May to $7.2 billion as pandemic-fueled consumer behavior followed a hockey stick pattern, according to a survey conducted by Brick Meets Click on behalf of Mercatus. 45.6 million households placed e-grocery orders in June, up from 43 million in May.
Postmates is considering either an IPO or an acquisition by Uber to augment the latter’s own Uber Eats delivery services as its core ride hailing suffers during the pandemic, according to several media reports. The fourth largest U.S. food delivery service has also received a second offer from a special purpose acquisition company.
With states reopening for business, experts wonder how grocers will continue to adapt, and how ingrained online buying patterns will be. Jon Hauptmann, Senior Director of Retail Pricing and Analytics Solutions at Inmar Intelligence, discusses Inmar’s recent survey findings and what’s next in this MCM CommerceChat podcast.
On the same day it was announced Deliv was winding down its operations this summer, it came out that Target is in talks to snap up some of Deliv’s technology assets to bolster its local ecommerce fulfillment and bring founding CEO Daphne Carmelli onboard, NBC reported. Others had reportedly been looking at Deliv, including grocers.
Supply chain issues related to COVID-19 are causing lots of problems for retailers who are still tasked with fulfilling orders on a timely basis. This means looking into nontraditional fulfillment methods that provide flexible and cost-effective solutions. Popup fulfillment centers are one viable solution to address these challenges.
The effects of the novel coronavirus known as COVID-19 are being felt globally. Given the widespread impact, most subscription-based businesses are sure to feel the repercussions long term. Given the many challenges it presents, planning now to ensure that your business can adapt as this new reality unfolds is your best move.
Amazon has temporarily suspended fulfillment of non-essential items through FBA through April 5, due to high coronavirus-related demand. Meanwhile, retail and DTC brands are closing their doors, while UPS assures customers their deliveries are safe, and major e-grocery delivery app downloads are setting records daily.