The shift to online retailing over the last five years finally caught up to and overran U.S.-wide delivery capacity during last year's holiday season. According to Forrester Research, online retail sales will grow by an additional 60 percent over the next five years. This kind of sea change has stretched the ability of physical networks to keep up and the shortage of drivers had further exacerbated this situation. Instead, technology has become more important to meeting retailers' holiday delivery challenges by helping to improve the productivity of existing resources and offer a greater array of delivery services being demanded by consumers.
In order to keep up with major players UPS and FedEx in a hyper-competitive delivery market, the U.S. Postal Service is seeing a parcel-based future, including expansion of its grocery delivery business.
Whole Foods Market moves into the fast-growing same-day grocery-delivery space with the news that it is partnering with one-hour grocery delivery start-up Instacart to have products delivered to customers' homes in as little as one hour. Customers will soon also have the option to place orders via Instacart and pick up their order at a local Whole Foods store.
Everyone, from Amazon to Google to Martha Stewart, has been lauding the benefits we'll all reap by the use of drones, and there’s a gold rush on to cash in on the technology. But beware: The trend has all the hallmarks of a bubble-in-the-making, the contemporary equivalent of that symbol of the excess of the millennial tech bubble, the now-defunct Pets.com.
With companies like Amazon.com and Google advancing plans to use small unmanned aerial vehicles for commercial purposes, pressure is mounting on the Federal Aviation Administration to quickly release rules governing private drone use.
Staples says it is enhancing its omnichannel experience, including the ability to buy products online and pick them up in-store within hours, an easier way to pay online called Visa Checkout, new in-store kiosks and, for the first-time ever, an iPad app.
Drone delivery, anyone? We're not completely there yet, but while we wait for products to fall from the sky, businesses need to maintain a competitive edge by outsourcing fulfillment to the right provider.