Todayβs WSJ shares: + Online purchases are up 18% over the last 6 weeks compared with last year. + 1/3 of online purchases will be returned. + Amazon will soon have 60 freighter aircraft. These help it undercut UPS and FedEx.
Notably, Sears and most major retailers lease no airfreight carriers. While times are good, retailers should be taking pages form Amazonβs playbook to avoid Searsβ fate.
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June 28, 2018
June 28, 2018
Good morning. The Galloway book mentions this Amazon cutting out UPS and FedEx. If it can own its own shipping, it can underprice stores anytime/all the time regardless of taxes or other variables.
To quote Jaws, βI think weβre gonna need a bigger boatβ :)
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May 3, 2018
May 3, 2018
FedEx hit the cable. No sign of AT&T repairman for third day because the new cable has to come from North Georgia!! No phone service at Brown's. PLEASE CALL (912) 245-1722 if you need assistance or would like to place an order. (Might add a prayer for Sandra not to hurt anyone today!)
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January 1, 2015
January 1, 2015
Fedex and UPS prices are increasing in 2015. The new pricing model takes into account the size of the box shipped instead of just the weight. For example, to ship a women's shoulder bag may cost 40% more to ship.
How does this affect retailers? One may wish to reduce package sizes and consider using USPS instead. This may also help slow Amazon's encroachment on Main Street, mom & pop stores. However, some people think it will giv Amazon an additional advantage.
Finally some good news for brick and mortar, independent retailers: shipping rates are going up. This will likely affect amazon and online only stores more then stores on Main St. This may drive more customers to literally drive to the store and buy goods.
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October 5, 2008
October 5, 2008
Free Shipping Offers From Online Merchants Will Increase
A recent article in Advertising Age questions whether free shipping from websites may be less common due to rising fuel costs. I believe free shipping with and without conditions will increase. Free shipping has more to do with getting around MSRP than actual shipping costs. For a retailer to cut out free shipping, theoretically the free shipping would have to account for 50% of an item's price thereby canceling out any profit for the ...
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July 19, 2008
July 19, 2008
Shoppers Go Online to Save Gas Money
This article below from the today's NYT echoes a conversation I had this week with a major tableware brand. The head of the company said that he can see a day when the traveling home goods salesperson will not travel. Instead, the person will do his or her sales presentations over the phone and web. Samples will be shipped via UPS or FedEx. Otherwise, sales reps have to drive to and from meetings, and this gas money may eat up 25% of their commission. Oddly, ...
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