The retail delivery wars are changing the global eCommerce and retail landscapes quickly. With the increase in demands from customers, both merchants and carriers are looking for ways to meet these customers’ demands without drastically inflating prices. Here’s all you all you need to know about the impact of the continuing delivery wars around the world!
What are the Retail Delivery Wars?
With the global growth of eCommerce, there’s been significant changes in how logistics are handled by carriers and merchants, specifically when it comes to seeking out means of delivering packages to customers quicker and more efficiently.
This is where the eCommerce giants come into the picture, specifically Amazon and Walmart. Not only is more attention being given to one-day and same-day shipping, there’s also a need to ensure that the packages are delivered to the recipients the same day they were shipped.
For example, in the United States, Amazon is busy shifting its delivery services to standard one-day delivery time for Prime subscribers while, on the other hand, Walmart and other retailers are offering subscribers one-day or same-day shipping.
Doing this domestically is never a big issue for companies as large as Amazon and Walmart, but when it comes to fastest delivery to international customers, you should know their expectations in order to successfully fulfil their orders. This is especially true because the delivery wars have come to steadily raise customers’ expectations, both home and abroad.
Although Amazon has consistently maintained a position as the ultimate choice for every customer’s shopping convenience, Walmart is gradually upping its game too.
Apart from its offer of enhanced delivery to customers without membership for a limited time, the retail titan also offers convenient grocery pickup from some of its stores and, as if that was not enough, it went a step further to launch its free next-day delivery in various markets!
The next-day delivery service is available to customers who spend approximately $35 and above. More so, customers’ orders are shipped in one box, as against multiple boxes.
When comparing Target vs. Amazon and Target vs. Walmart, Target too isn't standing still and watching the ongoing retail delivery war. Utilizing the same-day delivery platform it acquired in late 2017, the retail giant is also offering its customers’ same-day delivery services.
Although customers are required to pay a fee to enjoy this offer or at least, opt in for a Shipt trial membership, the company now offers them the option of having just one item delivered within one day of purchase without any membership. More so, Target now offers its same-day delivery service to its online customers in approximately 47 states at a flat fee of $9.99 per order.
Not ready to back down, Amazon went ahead to tug at customer’s hearts (and wallets!) through its increase of the duration of its Amazon Prime Day offer from one day to two days. The company also extended its next-day delivery service to a dozen new states, including parts of Georgia, Florida, Illinois and Wisconsin, with plans to cover approximately three-quarters of the United States.
What reaction did this evoke from Walmart and Target? They also came up with their own respective aggressive promotions. Even eBay and many other smaller retailers have joined in the delivery wars, with more likely on the way in the future too!
How the Retail Delivery Wars are Changing Global Shipping
With these retail giants vying for eCommerce supremacy, their actions are steadily changing the way global shipping is being done. It’s not only impacting retailers, as couriers are also being impacted. For example, FedEx Ground, which has been offering 7-day residential ground delivery during holiday seasons, has announced that starting in January 2020, it will start offering all-year-round 7-day residential delivery services.
With the company’s projection of the average daily volume of small parcels shipment in the U.S. to double by 2026, there is no doubt that consumers are seriously gearing up to making the most of several choices that the delivery wars between the giant retailers is bringing to the forefront. Going forward, whether you’re shipping locally or internationally, delivery speed will always be key, especially next-day delivery for domestic shipments.
In order to come out as the winner, these retailers are investing in building the right fulfilment processes and logistical infrastructure, including partnering with leading couriers in order to offer their growing customer bases seamless fulfilment services. In this case, it becomes a matter of reliable, fast and affordable shipping than more of overnight delivery.
Walmart vs. Amazon
Now, let’s compare the top players who arguably hold the most sway in the global eCommerce world: Walmart and Amazon. Let’s examine how these retailers rate as far as meeting the growing demands of online shoppers is concerned. Here we go!
Amazon made an announcement in April about its efforts to cut down standard delivery period for Prime subscribers from two days to one day. Walmart, on the other hand, announced in May that it would offer its customers free next day delivery for orders worth $35 and above, selected from one of 220,000 products.
When it comes to Walmart vs. Amazon revenue, Walmart is ahead of Amazon with a total equity of $79.6 billion while Amazon stands at $43.6 billion. Additionally, Walmart has over two million employees while Amazon has approximately 575,000 employees.
Innovation wise, both companies are practically matching each other step for step. After Amazon launched its Amazon Go stores, Walmart took a similar step with its own version of the store. In terms of physical retail presence, however, Walmart takes the lead as it presently dominates the physical shopping space and its retail presence is continually growing.
Retail Delivery Wars: Changing the Global eCommerce Landscape
The desire for reliable and faster delivery of orders has continued to fuel the delivery wars and the world’s largest giant retailers are taking multiple steps to be ahead of the competition.
In turn, this is significantly changing the way shipping is done and will likely continue to impact global logistics and shipping for years to come, as next-day and same-day shipping become more commonplace and the barriers to cross-border logistics continue to steadily fall.
Fortunately, Easyship integrates with eCommerce platforms like Amazon, eBay and Etsy in order to help small business owners to deliver their products both locally and internationally. Sign up for an account today to take advantage of our global courier network with shipping rate discounts of up to 70 percent and help your business go global!
Previous Post:Biaggi: Swimming with the Sharks