Amazon Prime Day 2020 Blog Post

What Supply Chains Should Expect from Amazon Prime Day this Fall

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Amazon Prime Day is approaching quickly with a start date of October 13, 2020. While Amazon typically holds this digital shopping ‘holiday’ in July, supply chain disruptions brought on by Covid-19 led to a postponement of the event. Despite setbacks beyond their control, Amazon has high hopes for this year’s Amazon Prime Day!

The 3-day holiday filled is the most important event of the year for Amazon, drawing in more sales than Black Friday and Cyber Monday. In 2019, Amazon made over $7 billion from the 48-hour event. In addition to being an opportunity to increase sales, Amazon Prime Day draws in many new Prime membership registrations for Amazon. The great digital deals entice many consumers to become part of this growing community of shoppers.

Popular Amazon Prime Day Deals 

While the offerings of this year’s Amazon Prime Day will remain a mystery until it begins, the past couple of years have had a focus on electronics. Popular purchase items included e-readers, vacuums, blenders, smartphones and smart TVs. Amazon has already started offering a discount on the Apple iPad 2020 to entice customers to start shopping. 

With so many kids attending school remotely and parents working from home, products like laptops and computers are already experiencing a surge in consumer demand. New discounts and limited-time offers just before the holiday season are going to tempt consumers further. 

In a bid to compete with Amazon Prime Day, competitors like Walmart, Target and Best Buy often launch their own series of discounts to compete for customers. There are plenty of options for consumers to choose from, but they’ll have to wait until Amazon Prime Day to find out who has the best deals! 

What Amazon Prime Day Means for Supply Chains 

When it comes to Amazon Prime Day, supply chains should be prepared for anything. With so many different offerings on a wide range of products, there’s no way to predict how many orders will come in for each. Companies manufacturing in smaller quantities may have to pick up the pace on production ahead of the holiday. 

Manufacturers of products like laptops, monitors and headphones are already experiencing a higher volume of orders because of the pandemic. Discounts are likely to amplify the number of orders. Since this year’s Amazon Prime Day is closer to the holiday season than usual, many shoppers have more concrete lists and are ready to order. This, combined with the fact that many consumers are choosing to keep their shopping digital during the pandemic, makes it likely that this year’s Prime Day will dwarf previous years’.

The best way for supply chains to prepare for the impact of Amazon Prime Day and the sales that follow is by leveraging visibility tools in their supply chains and remaining proactive instead of reactive. Companies need to provide real-time tracking information and shipment details to meet consumer expectations. The same information can empower retailers to make strategic decisions regarding their freight.

The key to true supply chain visibility is a transportation management system (TMS) like Kuebix. With Kuebix TMS, stakeholders can collaborate on a single platform for complete visibility and control of their shipping operations. Real-time tracking information helps everyone to stay informed and detailed reports and dashboards help companies analyze their performance and identify areas to improve. 

Regardless of where customers shop for this year’s Amazon Prime Day, supply chains have their work cut out for them!

robots shaping the future of warehouse operations

Robots are Shaping the Future of Warehouse Operations

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Artificial intelligence, virtual reality and robotics have all become hot topics when it comes to the future of the supply chain. Advanced robotics are already being utilized in warehouses around the world. As robots continue to prove themselves through real-life applications, this field of technology is on course to solidify its presence in warehousing. Here are some examples of companies changing the landscape of supply chain focused robotics.

Companies Shaping the Future of Robotics in Supply Chain

Amazon Robotics

One of the biggest examples of success with robotics in the supply chains is e-commerce leader Amazon. Their Amazon Robotics program utilizes two different forms of robotics that specialize in picking and packing: collaborative systems and non-collaborative systems. Non-collaborative is more prominent within warehouses because it allows employees to stay in place while robots move goods around the warehouse. This method doesn’t require physical interaction between warehouse workers and advanced technology. 

Amazon’s robots carry shelves of products around a chain-link cage using QR codes on the floor for navigation. The shelves are then loaded and unloaded based on order demand by warehouse employees. Amazon’s robots increase fulfillment speed, picking accuracy and make employee tasks less repetitive and sedentary. 

Fetch Robotics

Fetch Robotics has come up with a more independent application of robotics in the warehouse to replace forklifts. They have created freight robots including the automated version of Freight 1,500 (coming later in 2020) and CartConnect500 that can pick up items from one place and move them to another without any human interaction. 

Both of these models have attachable, industrial-grade carts that can carry a variety of containers to improve efficiency and organization. CartConnect500 can transport up to 1,100 pounds while the fully autonomous version of Freight 1,500 will be able to hold 3,300 pounds. The CartConnect500 and other freight-focused robots aim to automate repetitive processes and enable warehouses to operate efficiently with fewer employees doing manual tasks. 

Robots promise to provide increased productivity in warehouses around the world. As new models of non-collaborative and collaborative robotics are integrated into the workplace, it will be interesting to see how they join forces with humans! 

 

Black Friday Cyber Monday 2020

Let the Bargains Begin: Black Friday & Cyber Monday 2019

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Black Friday and Cyber Monday have become infamous discount-filled holidays. Many families enjoy the tradition of camping outside retail locations and being some of the first to shop at midnight. Those who feel overwhelmed by this often chaotic process can enjoy many of the same sales on Cyber Monday, which starts the Monday after Black Friday.

The term “Cyber Monday” was coined in 2005 by the National Retail Foundation (NRF). They had noticed a recurring spike in online traffic and sales on the Monday following Thanksgiving. The NRF believed the substantial increase in revenue was a result of consumers making purchases at work because of stronger internet connection and privacy from kids wanting a sneak peek at their gifts.

As online shopping continues to gain traction, many big-name retailers are now offering their Cyber Monday discounts early to try to get an upper hand against the competition. Early offers are attractive to consumers because they are able to get good deals on in-demand products. Not to mention they can avoid the chaos of shopping in stores on Black Friday!

Below are a few retailers starting Cyber Monday early:

  •    •    Target – Hauls on Target’s e-commerce website are even more appealing to consumers with their recently added free two-day shipping offer running until December 21. Their “HoliDeals” program will feature thousands of deals on electronics, décor, toys and more throughout the holiday season. To kick off the holidays, Target is having a Black Friday preview sale on November 8 and 9 that will include 4x the number of discounts last year had. The company is hoping to make it easier for consumers to save by having their markdowns available for an extended period of time.
  •    •    Walmart – Walmart start November off strong by unveiling a series of amazing deals on electronic devices including Apple MacBook Airs, HP 14 Laptops, Apple AirPods, Smart TVs and more. These deals are congregated on their “Deal Drop” page that is steadily expanding as the holidays approach. Walmart is offering free next-day delivery on eligible orders that are worth $35 and over. By offering more promotions than ever and hosting in-store visits from Santa, Walmart hopes to serve as a one-stop-shop for all holiday gift needs and fun.
  •    •    Amazon – Amazon has dubbed its page of various discounts for the holidays as “Happy HoliDeals.” This section of their website is currently live and offering up to 70% off on products including Dyson vacuums, Alexa gadgets, Bose headphones, bedding essentials and more. Amazon is offering deals that last through the shopping season along with Lightning Deals and Deals of the Day. These subcategories of discounts only last for a certain amount of time in hopes of leading consumers to make a purchase and avoid missing out.

What to Expect from Black Friday and Cyber Monday

Black Friday is still the busiest shopping day for retail stores, but it should be noted that foot traffic is declining. In 2018, the number of people visiting stores decreased by 9% in comparison to the previous year. Each holiday shopper spent around $1,007.24 in 2019 on seasonal products including gifts, food, decorations and greeting cards. They also shop for non-holiday products to take advantage of seasonal deals and promotions. Consumers spent a grand total of $717.50 billion in 2018 (up 4.3% from 2017).

It’s estimated that Thanksgiving, Cyber Monday and the days in between capture 20% of all holiday online shopping! Cyber Monday drew in $7.9 billion worth of online sales (up 19.7% from 2017). The NRF cited a mixture of self-spending and gifting along with high confidence among shoppers for this upward trend.

Staying Ahead of the Curve

Have Ample Inventory on Hand

With Black Friday and Cyber Monday closing in, it’s important to take a step back and identify what your supply chain needs to have a successful holiday shopping season. Retailers need ample stock of their inventory that can move throughout their supply chain and between other locations based on sales volume easily. Preparing for the season can only take companies so far – a portion of their profit is dependent on the ability to adapt to consumers’ responses as promotions begin to roll out.

Know the Customer

The average holiday shopper’s knowledge of substitute products and standards has increased since the dawn of the internet. Retailers are responsible for knowing what shoppers want instead of simply telling them what they need – meaning power is given back to the consumer. Shoppers expect the same discounts offered in-store to be available online so they can shop within the comfort of their own home. Stores who don’t make this a reality or offer exclusive in-store promotions run the risk of losing their share of online holiday shoppers to competitors.

Offer a Shipping Incentive

Big-name retailers who have successfully navigated Black Friday and Cyber Monday have one thing in common: Shipping incentives. Consumer demand has been steadily increasing for some time now. Shoppers are more concrete in what they want and are looking to have the product in their hands as soon as possible. Retailers have adjusted to this by offering a shipping incentive like 24/7 free shipping, free shipping after spending a certain amount of money or free two-day shipping. Consumers are already more inclined to shop online and free shipping that transports their products is another convincing factor.

The 2019 Holiday Shopping Season

A successful Black Friday and Cyber Monday both rely on balance. Retailers must have sufficient inventory for online and in-store sales to provide holiday shoppers with the best experience possible. They need to be aware of what consumers like to see in person before buying and what they prefer to order online. Inventory has to be adjusted to meet these preferences. Shipping incentives getting products to the consumer quickly and for free are often the tipping point in the purchase decision.

Ready or not, holiday shopping is right around the corner! How are you preparing your supply chain?

FedEx’s Breakup with Amazon Draws Battle Lines in the Fight for Shipping - Kuebix TMS

FedEx’s Breakup with Amazon Draws Battle Lines in the Fight for Shipping

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FedEx is breaking up with Amazon as the e-commerce giant continues to make waves in the shipping industry. The carrier announced that it will choose not to renew its ground freight contract with Amazon for any final mile delivery, effective September 2019. This comes only 2 months after FedEx announced that it would end Express air shipments with the e-commerce company. Amazon made up roughly 1.3% of FedEx’s total sales in 2018.

According to spokespeople from both companies, the breakup is amicable, an Amazon operations executive even tweeting “we wish them nothing but the best, conscious uncoupling at its finest.” But this conscious uncoupling goes deeper than a simple business incompatibility.

Here’s what you need to know about why FedEx and Amazon have officially parted ways.

Amazon’s Bid to Transform the Shipping Industry

It’s no secret that Amazon has ushered in an era or super-fast, super-convenient online shopping. The company has become the #1 e-commerce platform, bringing in close to $232 billion U.S. dollars in 2018 net sales. By promising Prime members free, 2-day shipping on thousands of items, Amazon has built consumer loyalty and changed the way shoppers think about shipping. Customer expectations have changed and 2-day, or even faster, delivery is now expected. In fact, Amazon plans to make 1-day delivery standard for Prime members in 2020.

Amazon

In order to meet these pie-in-the-sky delivery promises, Amazon has decided that a ‘go-it-alone’ strategy is needed for their logistics operations. Instead of solely relying on established parcel carriers like FedEx, UPS, or the United States Postal Service (USPS), the company is increasingly developing their own shipping networks. This includes building out their own fleet to fulfill final mile deliveries. Most recently, Amazon announced that they will pay their employees $10,000 and 3 months’ pay to quit and start their own Amazon delivery service.

In addition to expanding their ground fleet operations, Amazon has also added hundreds of fulfilment centers to its logistics network, announced its groundbreaking drone delivery program, and added next-day air capacity with leased jets. It’s not surprising that FedEx feels the need to distance itself from a company that appears to be stepping into their territory. The company is taking short-term pain over the possibility of continuing a potentially damaging relationship long-term.

FedEx Bets On Wal-Mart and Other E-Commerce Businesses

Amazon officially surpassed Wal-Mart as the world’s largest retailer earlier in 2019. That isn’t to say that Wal-Mart doesn’t pose a threat to Amazon’s monopoly in the e-commerce world. Wal-Mart has some 2.2 million workers, a number roughly 4 times the number Amazon employs. It also already owns a vast amount of real estate, strategically dispersed across the USA. Not to mention that Wal-Mart owns one of the largest private fleets in America. By building upon this base, Wal-Mart has ramped up efforts to compete with Amazon in the e-commerce sector. This includes plans to roll out a 1-day delivery program that shoppers can take advantage of without any membership fees.

Parcel and E-commerce

FedEx appears to be betting on Wal-Mart as Amazon’s primary rival in the fast and free online shopping industry. According to the founder of SJ Consulting Group, a company providing data and advice to logistics companies, the decision to sever ties with Amazon is a way for FedEx to “get Walmart to realize that they’re not working with Walmart’s biggest competitor and to have Walmart make FedEx their primary carrier.”

To make up for the short-term loss of 1.3% of their business, FedEx also announced in May that they would begin seven-day ground freight services at the beginning of 2020. This move will likely make them an even more desirable carrier for companies like Wal-Mart, Walgreens, and other retailers in the e-commerce space.

The Future of Final Mile

The breakup of Amazon and FedEx is just another example of the battle lines being drawn between Amazon and the rest of the retail industry. As companies seek to differentiate themselves from the e-commerce behemoth, changes as small as choosing a different carrier can be important. FedEx appears to already be taking steps to compete against Amazon’s 2-day and 1-day delivery promise. The future of final mile delivery is still uncertain, but the main competitors are just now entering the ring.