Google to Offer Same Day Delivery Service... Maybe

Since the beginning of internet shopping, people have been looking for a quick shipping method. Although there are many sites that offer relatively quick shipping, Google is now rumored to be starting a same day delivery service. This service is not official yet, but those close to the company say that Google is working on it.

Sources say that it will be offered at much a cheaper price than most of the competitors such as Amazon Prime. If this is true, it could open up even more advantages and ease to online shopping. It could also save lots of forgetful guys on their anniversaries! It may provide another marketing avenue for local online sellers. If Google does indeed start offering this service, it already has a large number of people to market to - their current audience.

Although there has been no direct word from Google yet, Google is known for looking for more exciting and better ways to please their customers. Google is also said to be working with numerous large chains such as Walmart and Target for the service. It looks as if online shopping will be getting a whole lot quicker in the future if these rumors surface.

What does this mean for the current online seller? It may be a way to market your merchant-filled inventory to local customers. It may be a way of sourcing products for that Amazon FBA box you want to fill. It may allow those who cannot easily source products locally a chance to find more items to sell from the comfort of their own home.

At this point, the key factor needed is patience while we wait for the official announcement.

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USPS Expedites a New Shipping Service

eBay, Amazon and Walmart Stores have recently a new same-day service in selected cities. (eBay Now serves some of the Manhattan and Brooklyn areas of New York City. Amazon offers same day in many cities throughout the country, including Chicago, Boston, Las Vegas, and Washington, DC. Walmart To Go is covering Chicago and San Jose/San Francisco.) Now a new company has thrown its hat into the same-day shipping ring, the United States Postal Service.

As you may know, the USPS has been dealing with mounting losses for years. This move may help to rebuild the USPS as a viable player in the delivery/eCommerce services market. The new service, called Metro Post, is slated to begin testing in the San Francisco market on December 12. For a fee of $10, the USPS will deliver purchases in that area from major retailers the USPS has partnered with. At this time, there is no list of retail partners available. That will be announced closer to the December 12 launch date.

According to the documents the USPS filed with the Postal Regulatory Commission, here is how the program will work:

Through this market test, buyers can request same-day delivery in one of three ways: 1) utilizing a qualifying online e-commerce platform to purchase items online; 2) purchasing items at the retail stores that have partnered with test participants; or 3) visiting a test participant’s website to purchase items. Eligible buyers must live in a specified area within a selected major metropolitan area.

The daily cut-off times for making any purchases of items delivered via Metro Post service will occur between 2:00pm and 3:00pm. Package pick-up will then be scheduled to take place at participating locations after 3:00pm, by Postal Service-uniformed delivery personnel. The Metro Post packages may be exchanged between agents, and dynamic routing tools will be used, in order to ensure efficient delivery; at this time, the logistics have not been finalized. Same-day delivery will occur between approximately 4:00pm and 8:00pm, as determined by the Postal Service.

The USPS is projecting that it will earn between $10 million and $50 million in new revenue in the San Francisco area alone. If the test is successful, the USPS plans to roll Metro Post out to 10 other large cities and believes it would increase its earnings to $500 million with the expansion.

This could be the program to help rebuild the financially struggling USPS. Last week, it reported a $15.9 billion annual loss for the last fiscal year. It will not resolve the entire budget issue but it could be a profitable move.

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eBay Offers (Almost) Instant Gratification to Some Buyers

Image courtesy of TheOnlineSeller.com

A few lucky eBay buyers have received an invitation for a new program from eBay. eBay Now was just launched to beta testers in the San Francisco, California area. eBay Now will allow eBay buyers to receive your purchases the same day the order is placed.

eBay buyers received an e-mail that sent them an invitation to download a mobile app that will connect them to the eBay now program. Those users will be able to buy new products sold by local stores. The stores include Toys R Us, Target, Walgreens, and many others. Once the buyer finds the item they wish to purchase, they click as the “Bring It” button. In an hour or more, a personal shopping valet will deliver the purchase to the buyer. Currently, there is a $25.00 minimum for purchases. eBay is offering the beta testers who currently have access to the program $15.00 off their first eBay order and no delivery fee for the first three orders. After the first three orders, the delivery fee is a $5.00 charge. Here’s a copy of the email that was sent to the invited buyers:

Hi [Name],

We know you love shopping on eBay. But sometimes you just can’t wait for shipping. Sound familiar?

If so, we’ve created an exciting new way to shop. Starting today, for purchases of $25 or more, San Francisco shoppers can order products from local stores and have them delivered to their door — at home, at work, or anywhere else in San Francisco. The new service is called eBay Now, and you can download it here for your iPhone®, iPad®, or iPod® touch.

Since eBay Now is in beta, we’re taking $15 off your first order and offering FREE delivery for your first three! After that, each delivery during the beta period is only $5. Your orders arrive fast — usually within an hour! Pretty convenient, huh?

Download the app now [link removed] and try it out. If you like it, share it!

You have three invites for friends and family.

Happy shopping!
The eBay Now Team

The eBay Now service is available Monday through Saturday from 9:00 AM to 9:00 PM and Sunday from 9:00 AM to 6:00 PM. The items can be delivered in as little as an hour but the store from which the item was purchased must be open for at least 30 minutes after the order is received. Here are a couple of screen shots that show what the app looks like on the iPhone.


Image courtesy of TechCrunch


In order to make this possible, eBay is using its Milo platform. Milo is a website that allows its users to search for a particular item and find out which nearby stores carry it. It also lets the website user know if the item is in stock and how much the item costs. eBay purchased Milo in late 2010 for $75 million.

This new service is in line to go the head to head with Amazon’s Same Day Shipping program that is currently in development for major cities across the country. While eBay Now is only offered to San Francisco area residents right now, anyone can sign up. Please click this link to be notified of when eBay Now will be available in your area. eBay will be using these registrations to determine if there is any interest in expanding this program throughout the country in future.

What impact will this service have on eBay Sellers? Will eBay’s marketplace become dominated by big-time retailers? Will the availability of new products and quick shipping impact Amazon's FBA business model? At this point, it’s a guessing game. What do you think? What impact do you think this will have on your business? Feel free to comment below to share your views.

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Amazon Considers Same-day Delivery

Amazon is working toward revolutionizing ecommerce yet again. To place itself in direct competition with retailers like Walmart and Target, Amazon is focusing on developing a business model that will allow it to deliver products to its buyers the same day the order is placed.


One change Amazon will have to make in order to move to this type of business successfully is revising how it handles state sales tax. Amazon is known as a fighter of internet commerce sales tax. It has excluded states like North Carolina, for example, from its affiliate program and its fulfillment warehouse plans due to the state’s instance on requiring Amazon to pay state sales tax. To make the same day delivery, Amazon will have to “play nice” with more states to create fulfillment centers that will allow its orders to qualify for the same day delivery option.


Amazon has become more willing to pay state taxes recently. The company is opening a new fulfillment center in New Jersey, a state that had pursued Amazon for state taxes in the past. Amazon has agreed to begin paying taxes to that state within the next year and a half. New Jersey will benefit from the additional sales tax along with income and property tax, as well.


How will this affect us as sellers? One by-product may be shipping products to additional fulfillment centers. Instead of having a couple of larger shipments to a few main warehouses, we may be shipping smaller boxes to more warehouse locations. Of course, this may also result in shorter distances for our shipments to reach more local warehouses and possibly the opportunity for our shipments to be checked-in more quickly.


There have been other companies that have attempted to use same day delivery for its online stores but on a very limited scale. Sites like Kosmo and Urbanfetch offered same day delivery of their goods to Manhattan. Kosmo offered books, games, and DVDs while Urbanfetch offers medicines, groceries, and DVDs. Amazon currently offers same day service to many metropolitan areas throughout the country, which include:

Baltimore

Boston

Chicago

Indianapolis

Las Vegas

New York City (and parts of New Jersey)

Philadelphia

Phoenix

Seattle

Washington, D.C.

It will be interesting to see what it will take for Amazon to roll out this service on a larger scale. To find out more about the current same say service known as Local Express Delivery, click here.



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