Shipping

Best Buy's stock has plunged 43 percent since October. It's not exactly the turnaround shareholders hoped for. But StellaService data shows the retailer has made significant improvements in at least one very important business performance metric — speed of delivery. Many industry watchers are asking, "How is Best Buy going to compete with Amazon.com?" Obviously, speed of delivery is an area retailers are battling to best each other. It seems Best Buy has found an advantage. As Amazon continues to build warehouses nationwide with the goal of delivering packages faster, Best Buy has been leveraging infrastructure that's already in place.

Amazon.com knows you so well it wants to ship your next package before you order it. The Seattle-based retailer in December acquired a patent for what it calls "anticipatory shipping," a method to start delivering packages even before customers click "buy." The technique could cut delivery time and discourage consumers from visiting physical stores. In the patent document, Amazon says delays between ordering and receiving purchases "may dissuade customers from buying items from online merchants."

At the National Retail Federation's annual convention, a festival of consumerism housed over the past four days in New York City's soaring Jacob Javits convention center with 30,000 attendees and dozens of lectures on the wizardry of modern commerce, the hottest ticket was for a lunchtime talk about a company that wasn't even there presenting. The enigmatic title, Even Amazon Can't Do This … Yet. "If you don't think Amazon is a problem for your business, I don't care where you are in the world, you're wrong, you're living under a rock," declared consultant Lee Peterson of WD Partners.

With its announcement yesterday that it will be investing in same-day shipping starting in 2014, Home Depot became the latest in a long line of retailers to offer this service to customers. This video examines the same-day shipping trend and what it means for consumers and retailers alike. 

When Jeff Bezos, the C.E.O. of Amazon, told "60 Minutes" this week that his company was experimenting with having drones deliver its packages, he seemed to be conjuring up a future in which fleets of flying machines would tote most of our purchases, and in which ordinary delivery people would become obsolete. But even if Amazon's Prime Air does work, and if drone delivery eventually becomes adopted more widely, it's not likely to wreck the delivery business as we know it.

Absorbing shipping costs on a mass scale can stress any operating budget, so retailers have been searching for the best ways to balance these expenses against higher abandonment rates. A few companies, including Amazon.com and Sears, have found solutions via pre-paid shipping programs. These programs charge consumers an up-front fee that helps fund ongoing shipping options and keeps consumers committed.

Amazon.com is testing drones to deliver goods as it works to improve efficiency and speed in getting products to consumers. Chief Executive Officer Jeff Bezos unveiled the plan on CBS's "60 Minutes" news program in the U.S., showing interviewer Charlie Rose the flying machines that can serve as delivery vehicles. The CEO said the gadgets, called octocopters, can carry as much as five pounds within a 10-mile radius of an Amazon fulfillment center. Amazon may start using the drones, which can make a delivery within 30 minutes, within five years pending Federal Aviation Administration approval, Bezos said.

Last week, UPS announced its 2014 general rate increase. Ground, air and international parcel products will increase an average of 4.9 percent, effective Dec. 30, 2013.

As the retail industry continues to evolve and consumers are presented with ever-increasing options to complete their shopping journey, retailers must understand shopper preferences to stay competitive. This year, we surveyed 2,500 shoppers in the United States and Canada to understand shopper preferences and expectations. Where can retailers improve? Our results revealed that the basics still rule. In-store execution, favorable online shopping features, creating a shopping experience wherever the customer happens to be, and giving customers a personalized experience are most critical to consumers. In order to stay on top, here are some suggestions from our research.

Just in time for Christmas, Amazon.com and the U.S. Postal Service are teaming to make "every day an Amazon prime delivery day." The e-retailer announced Monday that it will be rolling out Sunday delivery services in Los Angeles and New York to customers who are eligible for free, two-day shipping. In 2014, the service will be expanded to the broader U.S., to include such cities as Dallas, Houston, New Orleans and Phoenix. For the cash-strapped Postal Service, news of more deliveries for one of the biggest retailers of the internet age can't be that bad.