If you’re like most people – say, the 64 percent of American adults who own at least one smartphone, according to Pew Research – you probably do a fair amount of online browsing wherever you happen to be. Increasingly, mobile is not just an extension of the web experience but rather the focal point of it: All signs point to mobile driving e-commerce’s future growth.
The year 2014 was certainly historic on the postal and logistics front. Alibaba entered the U.S. market with a bang, setting a record with the largest ever U.S. initial public offering. For the first time ever, non-mail revenues exceeded mail revenues for postal administrations around the world. Shippers braced for the full effect of dimensional weight pricing. And the U.S. Postal Service added its name to the growing list of agencies and companies to suffer a data breach.
Social media isn’t just for fun any more. Sure, millions of people are still tweeting, posting, pinning, and sharing things with each other online by the nanosecond. But 70 percent of businesses and organizations worldwide, including the U.S. Postal Service, also have active Twitter, Facebook, LinkedIn, or other social media accounts.
That ethereal voice was enough for Ray Kinsella to build a baseball diamond in his cornfield in the movie Field of Dreams. But is this approach a sound business model for same-day delivery providers? It seems to be the model they are following: provide same-day delivery in anticipation that customers will eventually consider it standard practice – and actually want it.
Postal customers took fewer trips to the Post Office this past holiday season but that doesn’t mean they spent less on postal products. They just conducted more business through alternative channels, such as online at USPS.com and self-service kiosks. Over the 2013 holiday season, transactions at brick-and-mortar post offices were down 8 percent compared to last year, but transactions through alternative access were up 17 percent, postal officials reported.
This week the Postal Service announced plans to move into one of the few remaining frontiers of package delivery – Sundays.
Under a new negotiated service agreement approved by the Postal Regulatory Commission, e-tailing giant Amazon.com will use the Postal Service’s Parcel Select service to ship everything from clothing to garden tools on Sundays. The program is running now in the New York and Los Angeles metropolitan areas, with a rollout planned in 2014 in Dallas, Houston, New Orleans, and Phoenix, to name a few.
As online shopping has become the norm for many Americans, it has brought operational changes to both brick-and-mortar retailers and online retailers. Shipping costs are now a major consideration for companies. Retailers are working to control their shipping costs as their ebusiness grows, with the traditional retailers relying on their extensive network of stores to reduce shipping costs. Instead of shipping goods from centralized warehouses to far-flung customers, major retailers, such as Wal-Mart, Best Buy, and Gap Inc., deliver from stores close to their customers whenever possible.
Global e-commerce sales topped $1 trillion for the first time in 2012 and they are expected to grow another 19 percent this year, according to data from research firm eMarketer.com. While North America leads the world in online sales, Asia is expected to take the mantle by the end of this year. China drives Asia’s growth and this year it should surpass Japan as the world’s second largest e-commerce behind the United States and its $385 billion in online sales.
[dropcap style="font-size: 60px; color: #9b9b9b;"] H [/dropcap]ow has the digital age changed your life? Do you still shop in a store or buy online? Get the newspaper delivered or have an online subscription? Read hard copy books or use an e-reader? If you chose the digital options, you are not alone. You may be a digital native, one of those who are most comfortable working in a digital environment.