Dive Brief:
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In an effort to avoid the mortifying delivery delays of 2013, retailers including Wal-Mart, Amazon, and Macy's are expanding their fulfillment systems in an effort to speed up delivery at the holidays, reports the Associated Press.
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An expected increase in e-commerce this year will put much pressure on retailers. Although they’re are stopping short of promising speedier delivery, retailers are working to get close to two-day shipping, the standard set by Amazon Prime.
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Technology is also helping retailers speed delivery, with robots and algorithms shaving off time in and out of the warehouse.
Dive Insight:
The holiday delivery snafus of 2013, and to a lesser extent 2014, have left retailers and shippers determined to avoid late shipments.
But with e-commerce expected to take a greater share of holiday shopping this year, the pressure is on.
Many retailers are expanding their fulfillment network by building more warehouses nationwide, and those with brick-and-mortar stores will no doubt be employing many of their stores as mini-warehouses. Those testing or employing same-day delivery services may find this approach a good way to speed delivery, considering that same-day delivery is often less expensive than overnight or other speedy options from the likes of UPS or FedEx.
But it's not clear how quickly consumers expect their packages, and they may prefer to save money rather than spend a lot to get their goods faster. Forrester Research, for example, has found that, in general, shoppers are more interested in keeping prices low than in fast delivery, although they do want their holiday orders to arrive in time.
Retailers that allow last-minute e-commerce orders, which have added to the delivery misses of the last couple of years, take a risk when it comes to delivering on time — and in some cases they’re also paying dearly for those promises.