Delivery Delays will Lead to BOPIS as the Winner of this Holiday Season

December 17, 2019


It seems that no matter how much is invested into technology, networks, transportation and seasonal help, the weather can mess it all up and that is what seems to be happening this holiday season. Already pressured to deliver more packages in a shorter holiday season, carriers are also under pressure to deliver even faster particularly Amazon who announced earlier this year that it would replace its free two-day delivery with next day delivery to Prime members.

However, two months later, Amazon received notice that FedEx would not renew its Express contract with the e-commerce provider and then two months after that, in August, FedEx extended its cancellation of Amazon as a customer by declining to renew its Ground contract with them. So, Amazon is faced with the loss of one of its delivery partners.

Amazon stumbled early after announcing a record Cyber Monday and noting that it was “off to a record-breaking start to the holiday season." But, it soon was forced to issue the following statement, “We are off to a record-breaking start to the holiday season and on peak shopping days, delivery promises vary and may be longer than normal based on order volume and the fulfillment and delivery capacity available in a given area” after a number of customers complained of delayed shipments.

But, they aren’t the only ones…..

FedEx had to recently issue this statement:

FedEx is experiencing some of the highest volume days in the history of our company, and our networks are flexing as designed to accommodate the surge of packages. We worked all year to prepare, and are proud of the outstanding service we have been able to provide despite some weather challenges across the United States. In cases where packages have not met our service commitments, we are rapidly working to get them delivered with a focus on ensuring holiday deliveries make it on time.

And UPS soon followed with a similar statement:

Winter storms caused some weather-related delays last week in Colorado, Utah, the Upper Midwest and the Northeast. We are also experiencing record shipping volumes from all customers due to another year of strong growth in e-commerce purchases. UPS has implemented recovery plans by adding resources and extending work schedules to address any delays. The vast majority of UPS packages are being delivered in accordance with the service level commitments made to our customers. Overall, the UPS network is performing well, as we manage a more than 60 percent increase over our normal daily volume between Thanksgiving and Christmas.

A number of winter storms are rolling across the U.S. and are creating delays for delivery companies. However, each company also noted handling record volumes. Could that be a reason for delays as well? It’s probable.

As the delivery companies sort out their record volumes and fight winter storms, retailers such as Walmart, Target and Kohl’s are likely benefiting from Buy Online, Pick Up in Store (BOPIS). According to CommerceHub, 93% of consumers they surveyed said they will look to pick up purchases in stores this holiday season in order to save time and money. When asked why they chose BOPIS, 49% said they could get their purchase quicker than delivery; 44% said it was less expensive because of shipping costs; 5% were concerned about package theft and 2% chose it because they weren’t able to sign for packages at home or work.

Shipping deadlines are fast approaching and there is more inclement weather expected. BOPIS will be the shining star of this year’s holiday season.

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Delivery Delays will Lead to BOPIS as the Winner of this Holiday Season

December 17, 2019


It seems that no matter how much is invested into technology, networks, transportation and seasonal help, the weather can mess it all up and that is what seems to be happening this holiday season. Already pressured to deliver more packages in a shorter holiday season, carriers are also under pressure to deliver even faster particularly Amazon who announced earlier this year that it would replace its free two-day delivery with next day delivery to Prime members. However, two months later, Amazon received notice that FedEx would not renew its Express contract with the e-commerce provider and then two months after that, in August, FedEx extended its cancellation of Amazon as a customer by declining to renew its Ground contract with them. So, Amazon is faced with the loss of one of its delivery partners. Amazon stumbled early after announcing a record Cyber Monday and noting that it was “off to a record-breaking start to the holiday season." But, it soon was forced to issue the following statement, “We are off to a record-breaking start to the holiday season and on peak shopping days, delivery promises vary and may be longer than normal based on order volume and the fulfillment and delivery capacity available in a given area” after a number of customers complained of delayed shipments. But, they aren’t the only ones….. FedEx had to recently issue this statement: FedEx is experiencing some of the highest volume days in the history of our company, and our networks are flexing as designed to accommodate the surge of packages. We worked all year to prepare, and are proud of the outstanding service we have been able to provide despite some weather challenges across the United States. In cases where packages have not met our service commitments, we are rapidly working to get them delivered with a focus on ensuring holiday deliveries make it on time. And UPS soon followed with a similar statement: Winter storms caused some weather-related delays last week in Colorado, Utah, the Upper Midwest and the Northeast. We are also experiencing record shipping volumes from all customers due to another year of strong growth in e-commerce purchases. UPS has implemented recovery plans by adding resources and extending work schedules to address any delays. The vast majority of UPS packages are being delivered in accordance with the service level commitments made to our customers. Overall, the UPS network is performing well, as we manage a more than 60 percent increase over our normal daily volume between Thanksgiving and Christmas. A number of winter storms are rolling across the U.S. and are creating delays for delivery companies. However, each company also noted handling record volumes. Could that be a reason for delays as well? It’s probable. As the delivery companies sort out their record volumes and fight winter storms, retailers such as Walmart, Target and Kohl’s are likely benefiting from Buy Online, Pick Up in Store (BOPIS). According to CommerceHub, 93% of consumers they surveyed said they will look to pick up purchases in stores this holiday season in order to save time and money. When asked why they chose BOPIS, 49% said they could get their purchase quicker than delivery; 44% said it was less expensive because of shipping costs; 5% were concerned about package theft and 2% chose it because they weren’t able to sign for packages at home or work. Shipping deadlines are fast approaching and there is more inclement weather expected. BOPIS will be the shining star of this year’s holiday season.

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