Another holiday season, another massive surge in package volume. This year will be bigger than the last – which was a record-breaking year. It may be an understatement to say the dramatic growth in online shopping continues unabated.
Steve Jobs was famous for the ingenious simplicity of his designs. And, of course, his single button iPhone, now the standard in smart phoning, is a great testament to the value of simplicity.
As in design, simplicity in pricing, and a related simplicity of choices, are appealing to consumers. There is even empirical evidence that consumers will buy more when they aren’t overwhelmed with too much clutter and too many choices.
Today’s consumers are a demanding bunch – expecting to get what they want precisely when and where they want it.
These changing expectations are putting the pressure on both brick and mortar retailers as well as online retailers. Pressure grows to deliver goods faster, cheaper, and with more flexibility. Now, customers expect free shipping and overnight delivery or, in some cities, same-day delivery.
It seems same-day delivery might not be fast enough for some. Amazon.com is toying with the idea of delivering packages within 30 minutes – via drone.
Imitation is the sincerest form of flattery, they say. Maybe so. It’s just not usually FedEx that is doing the imitating or the flattering. But with its new “simple and predictable” flat rate shipping option, FedEx seems to be trying to look like the U.S. Postal Service in one particular way.
The FedEx One Rate bears more than passing resemblance to the popular Priority Mail Flat Rate, suggesting FedEx is shifting strategy to become more aggressive in the light-weight retail package segment it once largely ceded to the Postal Service.
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.
Imagine if customers didn’t have to wait at home for a package delivery or have to rush home from work to retrieve a package off their front porch. Or, what if they could avoid paying a fee to receive packages at another address? With 24-hour parcel lockers, their prayers are answered.