Anatomy of One Day Shipping

Anatomy of 1 DAY SHIPPING " WHAT IS 1-DAY SHIPPING? " DELIVERED 1-Day shipping boils down to meaning that an item is shipped 1 business day after it is available by the seller or retailer 1-Day shipping does not Some retailers necessarily mean you will consider the shipping recelve It the next day date separately from the estimated delivery date Meaning they may ship it after 1 day but it could take longer to actually be delivered AVAILABLE NOW If a seller or retaller must wait for the Item to be available first, It will be shipped 1 day after they receive it AMAZON PRIME'S SHIPPING " 1-DAY SHIPPING POLICY " amazon.com In Amazon's case, 1-Day shipping means you should recelve your Item 24 hours after It is shipped 24 But when it is shipped in the HOURS first place depends on product avallability " FULFILLMENT CENTERS ARE A MAJOR FACTOR CONTRIBUTING TO AMAZON PRIME'S SHIPPING SPEED " Amazon ships from over 80 fulfillment centers around the world 42 fulfillment centers in the contiguous U.S (with at least 9 more in the works in the U.S. for late 2013) The largest is in Phoenix, Arizona and is 1.2 million square feet - the size of 28 football flelds After items are picked and packaged, the conveyor belts move the boxes at about 20mph Employees sometimes have to bike across the center to pick items for shipment During peak seasons, like 2012's Cyber Monday sales, Amazon hired an additional 50,000 employees to handle selling more than 200 items per second " PRICE " Amazon Prime's special shipping like: ANZONCOM DISCOUNTED FREE 1-Day 2-Day shipping* shipping* *Only eligible with select items (items generally available in the fulfillment centers) Amazon can afford to offer free 2-Day shipping, free standard shipping, and discounted 1-Day shipping because Prime Members: amazon PRIME John Doe Spent as much as 150% more at Make $1,224 in Amazon XX-XX-XX Amazon after becoming Prime purchases each year, on average, compared to only $505 on average for Members, buyling more often and buying more Items in addition to the $79 membership fee non-Prime customers " FUTURE OF AMAZON SHIPPING " Amazon had been fighting a lot of tax laws up until 2011 The company shifted focus, agreeing to collect sales tax in exchange for building the new fulfillment centers in high-population areas like New Jersey, Virginia, Texas, and California Amazon is estimated to be spending over $2.2 billion in these new facilities which will hire tens of thousands of new employees All of these changes will enable Amazon to make 1-Day shipping standard and begin to offer same-day shipping in some major cities OTHER ONLINE RETAILERS eBay offers Seller Protection to sellers and encourages sellers to follow certain "Best Practices" ebay One of the best practices is shipping within 1 business day of buyer payment eBay's Seller Protection offers an additional incentive: Sellers can receive an automatic 5 Detailed Seller Rating for Communication when they specify 1 day handling time and upload tracking information within 1 business day, among other requirements Etsy encourages sellers to post a shipping policy and Etsy allows them to set their own shipping options/rates FedEx in their shipping profile This means shipping varies between sellers and the only incentive to offer 1-Day shipping or better is pure market competition Recently Etsy tested out displaying shipping costs Price combined with item prices as a total price instead of showing them separately, a move that could also .---- ---- ---- encourage sellers to either offer cheaper shipping or faster shipping options as incentives to buyers Earlier this year Google rolled out beta testing for 6 months of unlimited same-day shipping in the San Google Francisco Bay Area VII Shopping is limited to certain stores SOURCES http://www.amazon.com http://www.wired.com/gadgetlab/2013/03/google-delivery/ http://www.ecommercebytes.com/cab/abn/y13/m04/i15/s02 http://www.etsy.com/blog/en/2013/4-steps-to-shipping-success/ http://outright.com/blog/locations-of-amazon-fulfillment-centers-2/ http://www.bcg.com/media/PressReleaseDetails.aspx?id=tcm:12-129157 http://pages.ebay.com/sellerinformation/sellerprotection/bestpractices.html http://www.internetretailer.com/2013/03/05/price-beats-speed-online-shoppers http://www.businessinsider.com/amazon-fulfillment-center-tour-2012-11?op=1 http://pages.ebay.com/sellerinformation/sellerprotection/sellerprotectionoverview.html http://business.time.com/2013/03/18/amazon-prime-bigger-more-powerful-more-profitable-than-anyone-imagined/ http://www.comscore.com/Insights/Presentations_and_Whitepapers/2012/Online_Shopping_Customer_Experience_Study http://www.slate.com/articles/business/small_business/2012/07/amazon_same_day_delivery_how_the_e_commerce_giant _will_destroy_local_retail_html