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Tag: Shipping

  • Is Amazon Destroying Retail?

    Is Amazon Destroying Retail?

    “A set of facts could be put forward that would support that (they are destroying the retail landscape),” says former Walmart CEO Bill Simon. “They’re going through another cycle of it where their CFO in the (earnings) call said we’re reinvesting to drive one-day Prime shipping. That’s going to put more pressure on retailers and give them this Sophie’s Choice. Do I want to go out of business because I’ve lost my sales by not matching them on price? Or, do I want to go out of business because I’ve matched them on price?”

    Bill Simon, former CEO of Walmart, discusses how Amazon uses profits from AWS to prop up operating losses in online retail while in the process, destroying competing retail businesses, in an interview on CNBC: 

    Is Amazon Destroying the Retail Landscape?

    They’re running their business model and they’re just doing a fantastic job of it. Who doesn’t like stuff shipped to their house for free? It’s an awesome business model. It’s going to be increasingly challenging for them though because nearly 70 percent of their operating income came from Web Services. If you filter out the operating income from web services and if you take out the operating income for advertising, then there’s a chunk of it that is made in brick and mortar through Whole Foods, or at least there was because they don’t report that anymore, their worldwide retail business is operating break-even or at a loss. 

    Their international business loses money on $16 billion this quarter in sales. It’s really no wonder that regulators internationally are starting to look at them. A set of facts could be put forward that would support that (they are destroying the retail landscape). Think about it, in North America, they priced at or below cost for many years and didn’t make money. It’s arguable today whether their online business makes money in North America. 

    This Quarter Is the Poster child For Anti-Competitive Behavior

    All the while, Circuit City went out of business, Linens N Things went out of business, Toys R Us went out of business, and then Prime is the driver of it. It went from $79 to $99 to $119. That’s sort of the definition of anti-competitive behavior and anti-competitive pricing. Price below the market and when your competitors start to go out of business you ratchet up your price. This quarter is really a poster child for that. Their North American business grew $6 billion and lost money. Their operating income went down in North America. 

    They’re going through another cycle of it where their CFO in the (earnings) call said we’re reinvesting to drive one-day Prime shipping. That’s going to put more pressure on retailers and give them this Sophie’s Choice. Do I want to go out of business because I’ve lost my sales by not matching them on price? Or, do I want to go out of business because I’ve matched them on price? I’ve not been able to make any profit because they support their retail business with web services. It’s tough to compete with them when they’re not making money and pricing below cost with online retail.

    It’s Not Possible To Do One-Hour Shipping and Make Money

    Who doesn’t love stuff free shipping to your house in two days or one day or in an hour? That’s awesome. I use it all the time. Everybody does. But there are consequences to it. As the expenses go up and the price goes up, eventually, Prime has been going up in price sequentially and has to continue to go up. It’s not possible to ship things to your house in one hour and do it at the same price or cost that can make money in retail. It’s just not possible. The packaging alone, the delivery person walking from the street to your front door, start adding up the cost of all that and you can’t make money on a $3 box of breakfast cereal. 

    So it’s going to be tough. I don’t know that regulators will take that on given the consumers love for it. But if the retail landscape keeps getting impacted and the weaker keep dropping out and it gets down to this battle between the behemoth on the online side and Walmart on the physical side, it gets to be a complicating factor. I think then regulators have to look at it. When that happens it’s hard to tell but this quarter has really kind of the poster child for that.

    Is Amazon Destroying Retail? – Bill Simon
  • Autonomous Driving for Trucks Will Happen First, Says Full Truck Alliance CFO

    Autonomous Driving for Trucks Will Happen First, Says Full Truck Alliance CFO

    “Our view is that the commercialization of autonomous driving for passenger vehicles will probably take a bit longer than people would think,” says Richard Zhang, CFO of Full Truck Alliance. “We think the commercialization of autonomous driving for trucks will probably take place a lot sooner than it will take place in the passenger car vehicle sector.”

    Full Truck Alliance is a multi-billion dollar valued company that is becoming the Uber of trucks throughout China. The fragmentation of the trucking industry in China between independent truckers and shippers has resulted in an empty load rate of over 40 percent, about four times higher than in the United States. The Full Truck Alliance app and online platform connects shippers to truckers in real-time enabling huge reductions in empty loads.

    Richard Zhang, CFO of Full Truck Alliance based in China, discussed the company’s future in an interview on CNBC International TV this morning:

    Full Truck Alliance in China is the Uber for Trucks

    The problem we’re trying to solve is very simple because there are high inefficiencies between matching with the truck drivers and also matching with the shippers. The empty load rate in the US is only ten percent while the empty load rate in China is 40 percent. The empty load rate is very similar to the vacancy rate in the hotel business. The reason is that the market here is highly fragmented. You have highly fragmented truck drivers and highly fragmented shippers, lots of SMEs.

    Before we came into existence the matching between the truck drivers and shippers were taking place across a thousand offline marketplaces in China. What we have been trying to do is bring that offline marketplace online and use our algorithms in the back office to match automatically the truck drivers and the shippers. We are trying to reduce that empty load rate to well below 40 percent.

    Monetization Via Membership and Uber-Like Fees

    Our monetization strategy for Full Truck Alliance is as a product of a merger between two companies, Truck Alliance and also Yunmanman a little over a year ago. Post-merger we started monetization and the monetization takes place in two ways. Number one is we are charging a membership fee for the shippers and also very similar to Uber or DiDi we’re charging a take rate on the transactions themselves.

    We were very close to achieving our 2018 profit objective. We are actually very marginally close to break-even at the current moment and we have no doubt that we’re going be making earnings in 2019.

    Autonomous Driving for Trucks Will Happen First

    Our view is that the commercialization of autonomous driving for passenger vehicles will probably take a bit longer than people would think. We think the commercialization of autonomous driving for trucks will probably take place a lot sooner than it will take place in the passenger car vehicle sector. Therefore we are deploying a certain amount of resources into that sector in the form of investment.

    We have decided to be a strategic investor in an autonomous driving truck company for them to actually develop that technology and for us to actually use. The mandate for the partner is to actually put a fleet on the road in China to start working with our shippers in the next 12 to 24 months. That’s our mandate and so it depends on how successful they’re going to be at executing our strategy.


  • Walmart Can’t Let Amazon Out Walmart Walmart

    Walmart Can’t Let Amazon Out Walmart Walmart

    “I’ve been watching Walmart since 1968, they only came into existence in 62, they’ve done the same thing to the rest of retail,” says Jan Kniffen of J. Rogers Kniffen Worldwide. “They kept making a new step every time and the rest of retail had to follow and they won the game, they got all the market share. They can’t let Amazon out Walmart Walmart (when it comes to free one-day shipping). Walmart will fight this battle to the bitter end.”

    Jan Kniffen, CEO of J Rogers Kniffen World Wide, discusses Walmart’s likely reaction to Amazon’s free one-day shipping announcement in an interview on CNBC:

    Walmart Tweets One-Day Free Shipping…Without a Membership Fee

    Walmart is going to get to same-day delivery and so is Amazon. They’re just making the steps down. I would have come out with that tweet because they can say we’ll give it to you maybe same-day and no membership fee. They’ve been tit for tat for with Amazon right along. I think that Walmart with its 4,500 stores that are many distribution centers can keep up with Amazon on delivery. Can anybody else? Maybe not, but those two certainly can.

    Walmart can do same day and they should do it. The real question is what’s the cost to them to do this and what’s the cost to Amazon? They’ve already told us, it’s hundreds of millions of dollars. But what’s the cost to everyone else? Because market shares are what it costs everyone else. Walmart’s got to do this if Amazon does. They can’t give Amazon market share just because their deliveries are not as fast. But can anyone else keep up and pay the price that it takes to be able to do it? It’s really hard to imagine other people can. Amazon and Walmart both can.

    Walmart Can’t Let Amazon Out Walmart Walmart

    If you’re the investor I’m sure you’re going I don’t want this to happen. If you’re Walmart you’re saying I don’t really have a choice if Amazon does this I have to be competitive. Amazon caused Walmart or Walmart’s competitive nature caused it to spend a fortune over these last five years to be competitive with Amazon. When Doug (McMillon) came out and talked about it the stock went down a lot. Now it’s all come back and it’s all paid off and Walmart’s winning the game versus all of the other retailers. They’ve got to continue to do that.

    I’ve been watching Walmart since 1968, they only came into existence in 62, they’ve done the same thing to the rest of retail. They kept making a new step every time and the rest of retail had to follow and they won the game, they got all the market share. They can’t let Amazon out Walmart Walmart. Walmart will fight this battle to the bitter end. The question is do you still want to own the stock? My answer is yes you do just like you still want to own Amazon stock. These two win the game.

    Target is the Third Man Out in This Three-Horse Race

    I’m not pushing Target. I think Target is the third man out in this three-horse race. Target has done a great job. They’re a much better retailer than they were three or four years ago. They were the best retailer in the country in 2006. Now we’ve reached the point where it is sort of a three horse race and I just don’t see how they continue to win the game.

    I understand the call (by Barclays) and they are doing a much better job in apparel than they’ve done in years. But they’ve still got to fight this battle on things like same-day delivery with Walmart and Amazon. I don’t see how they win.

    Walmart Can’t Let Amazon Out Walmart Walmart


  • IBM Says Blockchain-Powered Shipping Industry Platform Will Dramatically Reduce Costs

    IBM Says Blockchain-Powered Shipping Industry Platform Will Dramatically Reduce Costs

    Major ocean container carriers CMA CGM and MSC Mediterranean Shipping Company (MSC) are joining TradeLens, a blockchain-enabled digital shipping platform, jointly developed by A.P. Moller – Maersk and IBM. With the addition of these carriers on the TradeLens platform, nearly half of the world’s ocean container cargo will be using blockchain technology to dramatically improve costs and efficiencies.

    Bridget van Kralingen, Senior Vice President of IBM Global Industries, Clients, Platforms & Blockchain at IBM, discusses the addition of major ocean carriers to the TradeLens blockchain-enabled digital shipping platform in an interview on Bloomberg:

    Blockchain Technology Could Reduce Shipping Industry Costs By 20%

    Essentially we announced yesterday that with the addition of MSC and CMA on to the TradeLens blockchain more than 50 percent of the volume of the containers of the world’s shipping industry will be on a blockchain that we’ve developed in collaboration with Maersk. What this means is full transparency and a massive reduction of paper exchange. An average shipment takes about 200 document exchanges between the multiple parties; the freight forwarders, the shippers, the carriers, customs, and ports.

    The World Economic Forum estimates that’s about 20 percent wastage from inefficiencies in the supply chain. The technology of blockchain allows all these multiple parties to immutably store the records and advance the records as the shipments move. This means less wait times. It means carriers and shippers know where the goods are. It basically means things can be cleared a lot faster, all leading to bigger inclusion in the shipping industry.

    Starting To See Blockchain Technology For Enterprise Really Scale

    The whole ecosystem will benefit so much in terms of the efficiencies. If you think about it, rather than having to interface 200 document times, it occurs once by putting your data on the blockchain. This is a situation when the ROI for every single industry participant is very strong.

    The second thing, which is really important and why we’re starting to see the blockchain technology for enterprise really scale in terms of what IBM has been building for our clients across numerous industries, is that there’s a level of security in here and there’s a level of speed and efficiency. It’s easy to actually set up these networks. The difference is that these solve problems that no one company could solve on their own.

    Blockchain Technology Reducing Costs

    The way that the system works is that all the participants pay a very small amount to belong to the blockchain. It is a flat rate but does change according to volume. It is a very de minimis amount and the real way that the blockchain works is by many many participants belonging to the network and by the fact that those participants have a reduced cost.

    Another example of this is we have a blockchain in the consumer and retail industry called Food Trust which tracks provenance and sustainability of food built in conjunction with the industry. It allows food to be tracked and recalled in two seconds versus six days. That has got such a strong economic and consumer value. The other big payback is that for many of our clients they’re looking at the idea to have trackable, sustainable, consumer presentations. So you can put diamonds on a blockchain and say they aren’t conflict diamonds. This is very powerful for consumer provenance and sustainability.

    Blockchain-Powered Shipping Industry Platform To Dramatically Reduce Costs
  • Rakuten Super Logistics To Open 6 New Ecommerce Fulfillment Centers

    Rakuten Super Logistics To Open 6 New Ecommerce Fulfillment Centers

    The recent USPS shipping structure changes will increase retailers shipping costs, says Rakuten CEO Mike Manzione. What Rakuten does is help retailers offset these increases by utilizing a network of order fulfillment centers, thereby controlling shipping costs while decreasing shipping times. “With the change to zone-based pricing for First Class Packages, all clients must reconsider how to locate their product closer to their customers,” says Manzione.

    Mike Manzione, CEO of Rakuten Super Logistics, discusses RSL’s plan to open six additional ecommerce fulfillment centers in 2019:

    Retailers Must Locate Products Closer to Customers

    Our continued expansion into major metropolitan markets is a commitment to our clients. We’re creating a network that provides our clients a greater choice and flexibility that aligns their customer base with their product. With the change to zone-based pricing for First Class Packages, all clients must reconsider how to locate their product closer to their customers.

    By 2021, worldwide retail e-commerce sales are projected to be 4.9 trillion dollars (USD). At the same time, customers are demanding shorter shipping timelines. RSL is uniquely positioned as an industry leader with our nationwide network of fulfillment centers. With our increased major metropolitan presence, RSL will reduce ground transit delivery to within one day.

    RSL To Open 6 New Ecommerce Fulfillment Centers

    Houston and Los Angeles will be our first 2019 expansion markets. The new Houston facility will be strategic for our clients importing product and materials from all over the world – including Brazil and Germany. Los Angeles will be strategically located near the Port of Los Angeles, a major container port. The Los Angeles location will be instrumental for our clients that import product from Asia.

    As a leader in the order fulfillment industry, RSL will also be employing state-of-the-art technology in all six new facilities. In 2018, RSL began deploying ‘order fulfillment robots’, developed by inVia Robotics, in its facilities nationwide and will be expanding with inVia’s automation technology in the new warehouses.

    About Rakuten Super Logistics

    RSL  Fulfillment Centers have been carefully managed from the ground up, to create unique, high-velocity operations:

    • Maintain complete control of your fulfillment with a cloud-based fulfillment management system.
    • Save on shipping costs and expedite shipment times with the 2-Day Delivery Network.
    • Improve customer satisfaction and earn repeat business from shoppers.
    • Focus on your business by partnering with the industry leader in eCommerce order fulfillment.
  • CEO of Shipping Giant Maersk: Imports to the US Are Strong

    CEO of Shipping Giant Maersk: Imports to the US Are Strong

    Despite the current trade climate imports to the US remain strong and are currently rising according to Soren Skou, CEO of A.P. Moller – Maersk, the world’s largest shipping company. Skou also discussed their use of technology to decrease fuel usage which is part of an overall initiative that the company has taken to digitize operations. 

    Imports to the US Are Strong

    Freight rates have gone up more than 5 percent so that’s a positive drive. We are also seeing good margin and appropriation in our other businesses, particularly in our logistics and ports business. Right now the global trade is growing at a reasonable pace and container freight rates are going up.

    Imports to the US are strong. We see our customers most likely building up inventories ahead of any tariff increases that may hit in the new year. Obviously, there will be a bill to be paid for that, so to speak, when that movement comes to an end with lower demand growth on the ocean in the first quarter of next year. We are prepared for that.

    The overall picture for the global trade is one of slow but reasonable growth but at the same time very moderate growth in capacity. It’s like a narrowing of the supply-demand balance and that leads to slightly higher freight rates, which of course is very positive for the industry.

    Effectively Using Technology to Reduce Fuel Use

    We work very diligently with our fuel consumption and fuel efficiency. We are slowly but surely able to reduce the amount of fuel that we use per container by deploying technology, by being better in the way we drive the ships and so on. Overall, as we have volume growth, we are also seeing a slow increase in the demand for fuel. We have plenty of fuel capacity available from the global refineries so it’s not like we are going to run out of fuel anytime soon.

    Earlier this year Skou talked about the importance of technology to Maersk:

    The most important thing for A.P. Moller – Maersk is to digitize. We do have an agenda to digitize transactions with our customers and the joint venture with IBM is a step in that direction. We are also digitizing the way we operate the ships, the cranes, and the containers. Also, we do hope that we will be able to create new businesses out of all of the data that we own. 

    Just two to three years down the line we would like to make global container shipping as easy to do for our customers as it is for all consumers today in ordering an airline ticket. We think there is plenty of opportunity for improvement of the customer experience in container shipping. Longer term, there are some problems and issues that we haven’t solved in our industry in terms of visibility, in terms of asset productivity. We believe that digitizing or connecting our assets will be able to help us some.

  • eBay Announces Update On USPS Package Pickups

    eBay Announces Update On USPS Package Pickups

    eBay made a quick announcement regarding USPS package pickups in light of recent changes made by the Postal Service. In a brief post, the company said:

    Sellers can now schedule a pickup on First-Class Package Service without having to choose at least one Priority Mail, Priority Mail Express, Returns or International package.

    This is due to a recent update made by the USPS, in which the First-Class Package Service selection was separated from the “Other” category (see screenshot below). The previously communicated workaround is no longer necessary.

    Screen Shot 2016-04-26 at 9.49.56 AM

    In related news, eBay has fixed a major bug in its mobile apps that told consumers there was free shipping on items that didn’t actually offer it.

    Images via iStock, eBay

  • eBay: We Fixed That ‘Free Shipping’ Glitch

    eBay: We Fixed That ‘Free Shipping’ Glitch

    Earlier this month, we reported on a glitch in eBay’s mobile apps that was telling buyers that some items had free shipping even when the seller had not indicated that they did. This, according to some, had been happening for over a year, but gained more attention in recent weeks.

    In one eBay forum thread, a seller explained:

    I had a customer make a Best Offer using their cell phone that showed Free Shipping at the time it was viewed, but this was not a free shipping item. I accepted the offer, but there was no mention of free shipping in the Message section of the offer.

    The customer is pretty upset with me. I am aware from the message boards that this is a glitch, but how do I convince the customer of this? … and hopefully doing this without making them even more upset.

    Other sellers in the forum acknowledged the issue as well. One responded, “OMG- Ebay keeps saying that this glitch is fixed, but obviously it is not!I had the same thing happen & I was very grateful that I had an understanding buyer.”

    Eventually, eBay addressed the issue, saying it was working on a fix. Now, the company claims to have actually fixed it.

    In the latest “Weekly chat with eBay staff,” the company says, “The Incorrectly Showing Free Shipping In Accepted Offers in Mobile issue has fixed across all mobile apps.”

    Some other issues were fixed as well. These include the shipping amount not showing in sent invoices, missing item titles in billing invoices, random thumbnail images not appearing in search or categories, and USPS international tracking numbers not displaying all info.

    Read eBay’s full post here.

    Image via eBay

  • Amazon Raises Spending Minimum For Free Shipping

    Amazon Raises Spending Minimum For Free Shipping

    In case it hasn’t been clear by now (it has), Amazon’s primary objective when it comes to everyday users, is to get them to become Prime members, which gives them access to free two-day shipping.

    Amazon has offered free shipping to non-Prime members for years, however. It just takes longer. It used to be for orders of $25 and over, but they jacked it up to $45 and over a few years ago. Now, they’ve increased the minimum yet again – this time to $49.

    TechCrunch points to a an Amazon help center document, which details the current terms. It does still allow customers a $25 minimum for books that qualify for eligible free shipping.

    Amazon says, “Orders including $25 or more of eligible books qualify for FREE Shipping. All orders of $49 or more of eligible items across any product category also qualify for FREE Shipping. With free shipping, your order will be delivered 5-8 business days after all of your items are available to ship, including pre-order items.”

    Last year, Amazon saw a 51% increase in Prime memberships worldwide. In the U.S. it was 47%.

    Image via Amazon

  • Controversial eBay Feature That Was In Testing Gets Global Roll-Out

    Controversial eBay Feature That Was In Testing Gets Global Roll-Out

    Last week, we reported on a feature that eBay has been testing. It lets customers say whether or not they received the item they purchased on or before a specific estimated delivery date. Yes and no are the only options. There is no field for additional details or comment.

    While eBay has let buyers leave more detailed comments on a seller’s shipping time in “detailed seller ratings” in the past, this narrows the scope of the question, and some sellers are concerned that eBay could misrepresent their efforts.

    It was looking like the company was starting to roll it out to all users, but since our article on the subject, the company has formally announced it. eBay said in an announcement:

    Since March, a growing number of buyers have begun seeing a test question (shown below) as they leave feedback, asking whether their item arrived in its estimated delivery period. Starting this month, this question will be presented globally to all buyers leaving feedback. There is no additional action required of sellers with the addition of this question.
     
    This new question is designed to give eBay additional insight into the on-time item delivery experience—especially on transactions where tracking is limited. Answering this question is optional for buyers.

    The company tells sellers they don’t need to take any additional action at this time, but that they should continue to deliver on the shipping methods and handling times stated in their listings.

    Based on what we’ve seen in the forums and internet comments, sellers aren’t happy with the change, and generally think it gives buyers more reason to have a negative perception of their buying experience, which in some cases could be out of the sellers’ hands. You can peruse some examples of what people have been saying about the feature here.

    eBay has tips for uploading tracking info, setting handling times, and scheduling for USPS pickups here.

  • eBay Delivery Feedback Feature Draws Ire From Sellers

    eBay Delivery Feedback Feature Draws Ire From Sellers

    eBay has been testing a new feedback feature that reportedly may be rolling out to all users. It enables customers to say whether or not they received the item they purchased on or before a specific estimated delivery date. Yes and no are the only options. There is no field for additional details or comment.

    While eBay has let buyers leave more detailed comments on a seller’s shipping time in “detailed seller ratings” in the past, this narrows the scope of the question, and some sellers are concerned that eBay could misrepresent their efforts.

    Ina Steiner at EcommerceBytes points to some comments on her own site as well as in the official eBay forum where sellers are airing their grievances. Here are some samples from the forum:

    “Just great, not only does ebay provide aggresive estimated delivery dates, they remind the buyer of them during feedback”

    “Just by asking it in that way, at that time, it makes it seem even more like a promise instead of an estimate.”

    “It SHOULD say, seller promised to ship by X, actual shipment date Y. This company seriously could care less about it’s customers – the silver lining of watching our sales dwindle is knowing ebay is on it’s way out too.”

    “Oh, for cryin’ in the rain! Just one more thing to rate sellers on……Isn’t there enough already? Wonder how this will play out with holiday estimated delivery times, the winter months etc. I think I’ll just have a glass of wine now.”

    “Looks like another way to put seller[s] out of business.”

    “This is absolutely ridiculous! USPS is now about to fully close the Toledo Ohio sort facility and everything will have to go to Detroit , MI sort facility! What a mess this is going to cause for northern Ohio sellers! Already cases on the news where two day deliveries are taking TWO WEEKS! Once it leaves our hands it is completely out of our control but yet EBAY finds another standard by which they give give the buyer to leave us low ratings and a potential defect! WHAT ON EARTH IS EBAY DOING TO PROMOTE POSITIVE RESULTS ON THIS SITE?”

    Are these overreactions? Even if they are, it’s clear that sellers aren’t happy about the change. There are pages of these types of comments in the forum. There isn’t much in the way of people defending the feature.

    The overall theme throughout most of the comments on the feature seems to be that it is unnecessary at best with few seeing it as a positive for anyone involved. Many think eBay already has the data it needs when it comes to deliveries.

    Image via eBay Forum

  • Walmart Throws Shade at Amazon’s ‘Prime Day’ Birthday Celebration, Offers Up Own Deals

    Walmart Throws Shade at Amazon’s ‘Prime Day’ Birthday Celebration, Offers Up Own Deals

    On July 15th, Amazon turns 20. In celebration of this, the company recently announced what it calls “Prime Day” – an online shopping “holiday” for Prime members that it says will trump Black Friday in terms of deals offered.

    Now, Walmart is throwing a bit of shade at Amazon over said event.

    “If you’ve shopped Walmart.com, you’ll know that every day is a special day where everyone has access to the same low prices we offer. We mean everyone: you, your neighbor, your boss, your best friend … all of whom are looking for the best price on the things they want and need. We’ve heard some retailers are charging $100 to get access to a sale. But the idea of asking customers to pay extra in order to save money just doesn’t add up for us,” says Walmart.com President Fernando Madeira.

    So Walmart is taking some steps to compete with Amazon on its big day. First, Walmart is lowering the free shipping threshold to $35, from $50.

    “We’re kicking off some awesome deals this week that will be available for everybody with no hidden costs or admission fees, and they won’t be available for just one day,” says Madeira.

    He also promises thousands of new deals and some special “atomic” deals in weeks to come.

    It’s interesting that Walmart would talk bad about the idea of a subscription service for shipping, considering the company is testing a service called ShippingPass that offers unlimited three-day shipping for $50 a year (half the price of Amazon Prime).

    But hey, Walmart making moves to go after Amazon’s online empire is nothing new.

  • Amazon May Crowdsource Package Delivery

    Amazon May Crowdsource Package Delivery

    Is Amazon developing the Uber for package delivery?

    Amazon’s shipping costs have been rising for a while now (that’s why you now pay more for Amazon Prime, for instance). Now, it appears that in an effort to reign in these swelling costs, Amazon is thinking about crowdsourcing the delivery process.

    The Wall Street Journal is citing the omnipresent “sources familiar with the matter” who claim that Amazon is currently developing an app that would let regular people (as opposed to carriers like UPS and FedEx) deliver packages.

    From the WSJ:

    Amazon would enlist brick-and-mortar retailers in urban areas to store the packages, likely renting space from them or paying a per-package fee, the people said. Amazon’s timing for the service, known internally as “On My Way,” couldn’t be learned, and it is possible the company won’t move ahead, the people said.

    In theory, anyone could pick up a package and take it with them “on their way”.

    If Amazon wants to turn the country into its delivery force, there are plenty of hurdles it’ll have to jump.

    First and most importantly, there’s safety of packages. There would have to be some sort of vetting process for carriers. How would that work? Who would be qualified to pick up packages? Would people trust the average Joe with their deliveries? Who would carry the bulk of the responsibility for any hiccups along the way?

    How much would carriers be paid? Which retailers would cooperate with Amazon’s plans to basically be auxiliary warehouses for the online giant?

    As the WSJ says, it’s early and Amazon could easily scrap the whole thing. But it sure is interesting, for sure. And maybe more plausible than drones?

    Image via Stephen Woods, Flickr Creative Commons

  • Walmart Is Going After Amazon Prime

    Walmart Is Going After Amazon Prime

    Walmart is planning to take a run at Amazon Prime by offering a fast delivery program that’s half the price.

    The news, first reported by The Information, was confirmed by a Walmart spokesperson.

    The program will roll out this summer, and will cost subscribers $50 per year. It will offer speedy shipping on over a million products – three days or less.

    From the AP:

    Ravi Jariwala, a company spokesman, said the offering is in response to increasing demands from customers who are looking for predictable and affordable shipping. It’s also part of Wal-Mart’s overall strategy to test new ways to serve customers who are increasingly researching and buying on their PCs or mobile devices and are looking for convenience.

    Walmart’s unnamed program (codenamed Tahoe at the moment) is half the price of Amazon Prime, which offers free two-day delivery and costs $99 a year.

    Of course, Amazon Prime comes with a handful of other perks – Amazon Prime Instant Video, Prime Music, and the Kindle Lending Library.

    Walmart’s offering will focus on delivery only – at first. Walmart does have a streaming video arm – Vudu – but apparently there aren’t any immediate plans to work this into the new service.

    Walmart has been trying to edge into the online shopping market for some time. Back in 2012, the company launched same-day delivery on some items in select cities. Last November, Walmart began price-matching Amazon at all of its locations – but that didn’t work out so well.

    Image via Wikimedia Commons

  • Amazon Hikes Free Shipping Threshold in the UK

    If you’ve been ordering stuff from Amazon for a while, you probably remember a time when Amazon’s free delivery would kick in no matter what you bought.

    In the UK, the first minimum spend threshold came in 2013, when Amazon forced customers to buy at least £10 worth of product to qualify for Free Super Saver Delivery.

    Now, that’s doubling to £20

    Of course, you could just pay £79 a year for Amazon Prime and avoid this threshold altogether … or at least that’s probably what Amazon wants people to consider.

    Engadget UK first spotted the new rules, which go into effect at 6pm. They say Amazon “may also be moving to to cover the cost of its wide range of delivery options, which now include same-day collection and shipment to your local Post Office.”

    Folks in the States should recognize this sort of move. In October of 2013, Amazon upped the free shipping threshold to $35. Free delivery had previously kicked in at any $25 order – and it was that way for a decade.

    If you have a £7 item lying around in your cart, you better go ahead and buy it now. Super Saver delivery still kicks in at £10.00, according to Amazon UK’s help page.

    Image via Stephen Woods, Flickr Creative Commons

  • Target Takes a Swipe at Amazon, Lowers Free Shipping Threshold to $25

    Target Takes a Swipe at Amazon, Lowers Free Shipping Threshold to $25

    Target saw record online sales during Thanksgiving and Cyber Monday, and it looks like that strong performance made the company think about how to increase its online presence even more.

    Dropping free shipping thresholds to $25, $10 below online retail king Amazon, is a pretty good start.

    Target has just cut its minimum order price to qualify for free shipping in half. Orders that qualify for free shipping will arrive in 3-5 business days, and Target says that “most items” qualify (bigger items may require a handling fee). Expediting the shipping to one or two days will cost extra. And of course, there’s always the free in-store pickup option.

    “Lowering the free shipping threshold from $50 to $25 is one more way Target is putting guests first and making it easier for them to shop Target when and where they want,” said Jason Goldberger, president of Target.com and Mobile. “We saw an enthusiastic response to our free shipping offer over the holidays. Now, whether guests are stocking up or doing fill-in shopping, we’ve enhanced our year-round shipping offer to be one of the best in all of retail.”

    Amazon increased its free shipping threshold from $25 to $35 in October of 2013, the first time the company had done so in a decade. Shortly after that, Amazon increased the cost of an Amazon Prime subscription, citing shipping costs as one reason why.

    By comparison, Walmart’s free shipping order price point is $50, and even then it’s 6-8 day shipping.

  • eBay Reminds Sellers Of New Shipping Rates

    eBay Reminds Sellers Of New Shipping Rates

    eBay is reminding sellers of new shipping rates that will soon go into effect for FedEx and UPS. This will obviously affect eBay sellers as well as sellers on sites across the Internet.

    The new UPS rates go into effect today, while the FedEx changes will go into effect in a week on January 5.

    UPS announced its changes back in June, saying that in the United States, dimensional weight will be utilized to calculate the billable weight of a shipment on all UPS Ground services and UPS Standard to Canada packages. This was already applied to UPS air services (domestic and international), UPS Standard to Mexico ground services, and UPS Ground packages and UPS Standard to Canada for packages measuring 3 cubic feet in size or larger. More details here.

    “UPS has been researching the potential expansion of dimensional-weight pricing for a number of years because it enables us to more appropriately align rates with costs which are influenced by both the size and weight of packages,” said Alan Gershenhorn, UPS executive vice president and chief commercial officer.

    For FedEx, Express rates will increase as will FedEx Ground, FedEx Home Delivery, FedEx SmartPost, and FedEx Freight rates. FedEx Retail and One Rate pricing will also change. More details on these changes here.

    eBay notes that its shipping calculator, eBay labels, and PayPal labels will all be updated to reflect the changes, and that sellers should make sure the shipping costs in their listings also reflect the new rates.

    “In order for eBay customers to obtain accurate estimates on shipping rates, it’s important that sellers include not only correct shipping weights but also correct package dimensions when listing items or purchasing a label,” the company says.

    eBay recently announced the addition to printable labels from its mobile apps.

    Image via eBay

  • eBay Labels Now Available On Mobile

    eBay Labels Now Available On Mobile

    eBay announced that it is now offering sellers labels from its mobile apps. While you could access and print labels from the desktop before, the functionality has been expanded to make it more convenient.

    The company announced in a short blog post:

    You already know that eBay labels are a great way to save both time and money. But did you know you can print them from your mobile device? Well, it’s true. iPhone and Android users now have a super convenient way to print shipping labels right from their mobile phone. As long as you have the Android eBay app 2.8 or later, or iPhone eBay app 3.5 or later, you’re good to go.

    The labels have to be purchased through the app, and printed via a Wi-Fi enabled printer or by emailing the purchased label to your email id. You also have to have used eBay labels on the desktop in the past.

    In other eBay news, the company is expanding its local efforts, despite recently pulling the plug on its eBay Now apps. It’s reportedly offering in-store pick-up and same-day delivery in Brooklyn.

    Image via eBay

  • Amazon Extends Free Shipping Deadline for XMas Delivery

    Amazon Extends Free Shipping Deadline for XMas Delivery

    If you’re a procrastinating holiday shopper (and most of us are), you’ll be happy to know that Amazon has extended its deadline for free shipping to arrive before Christmas.

    You’ll need to place your order by December 19 to get your stuff by Dec 24. This gives customers an extra day as compared to last year.

    If you’re an Amazon Prime member, you can push it all the way to Dec 22 and still have your order by Dec 24.

    And for folks living in Atlanta, Baltimore, Boston, Dallas, Indianapolis, Los Angeles, New York City, Philadelphia, Phoenix, San Francisco, Seattle and Washington, DC, same-day shipping will allow you to place your order at 10am local time on Dec 24 and still have it delivered by that evening.

    Amazon is simply trying to match one of its biggest competitors this year. Walmart recently announced that it would guarantee Christmas Eve delivery for orders placed by Dec 19.

    This is simply a case of companies doing battle at the benefit of the customer. But beware, as Dec 19 will sneak up on you before you know it (it’s this Friday).

    Image via Stephen Woods, Flickr Creative Commons

  • Kickstarter Adds Shipping Options

    Kickstarter Adds Shipping Options

    Kickstarter announced the addition of a new feature that includes more built-in options for managing shipping of rewards for contributors. As the company acknowledges, this has been kind of a pain in the past.

    “There are times when sorting out shipping details for a Kickstarter project can get complicated,” Kickstarter says in a blog post “Figuring out the budgets and logistics for sending rewards all over the world, communicating back and forth with backers to make sure everyone’s included the right mailing costs — the whole thing can turn into a big headache, for everyone involved. Our goal is to make it easier for creators to create — so they can spend more time focused on making great things, and less time worrying about mailing them.”

    With the new feature, the creator sets up each reward, and is given three choices: No Shipping Involved, Only Ships to Certain Countries, and Shipping Anywhere in the World. If one of the options that requires shipping is selected, the creator will be able to add specific costs for any country.

    You can add as many additional details as you want.

    “Anyone who’s dealt with the logistics of getting rewards delivered can probably already imagine how much easier this can make life,” Kickstarter says. “And not just for creators! Now backers don’t have to worry about reading fine-print directions and making sure they’ve added the right shipping fees to their pledges — it’s all taken care of, right from the start.”

    When a backer pledges for a reward, they’ll be asked where they want the item shipped to, and the right amount will be automatically added to the pledge.

    Image via Kickstarter

  • Amazon Offers $1 Video Credit If You Let Them Take Their Sweet Ass Time Shipping

    Amazon Offers $1 Video Credit If You Let Them Take Their Sweet Ass Time Shipping

    Amazon Prime members: As long as you’re in no rush to get your new yoga mat, Amazon will give Prime members a $1 Amazon Instant Video credit if you let them take their time in shipping it.

    They’re calling it “No-Rush” shipping, and it’s the latest move from a company who is really struggling with rising shipping costs.

    This is apparently a limited time offer. The credits appear to last for three months, as credits applied today expire on October 31st. Though it doesn’t sound like much, all you have to do is be extra patient a few times and you’ll have enough credits to rent a movie (that’s not available for free via Prime Instant Video, of course).

    The free “No-Rush” shipping option now appears next to the free standard shipping, free two-day shipping, and $X one-day shipping options at checkout.

    Most Amazon Prime members are Amazon Prime members because of the free two-day shipping. Above all else, that’s major draw of the subscription. But Amazon hopes that every now and then, you won’t really need whatever you’re ordering that quickly.

    It’s obvious that Amazon is doing everything they can to reduce shipping costs. Remember when they hiked the price of a Prime subscription $20 earlier this year? Amazon cited rising costs for fuel and transportation when explaining the new price.

    Couple that with the recent release of a disappointing earnings report and you can see why Amazon would do anything, however small, to increase their margins.