75% of internet retail shopping carts are abandoned at checkout. Low-cost same-day delivery will reduce that major source of friction in online shopping
Boston, MA (PRWEB) May 17, 2012
The Internet Retailer, Fulfillment & Delivery Association (IRFDA) announced its formation today with the mission that internet retailers and fulfillment service providers of all sizes can reap the benefits of scale and technology that might otherwise only be available to the largest eCommerce enterprises. Steve Wilson, CEO of the IRFDA stated “some of the largest internet retailers, like Amazon and Google are already offering same-day delivery and other differentiating premium services that will put small and medium sized retailers at a competitive disadvantage. Working cooperatively eRetailers and fulfillment service providers can form a near-nationwide network of fulfillment warehouses to make feasible same-day delivery on a much larger scale.”
Forrester Research projects a 2016 internet retail market of $327B. “Using the 8% of revenue that Amazon states they spent on delivery in 2011 results in a $26B market for eCommerce delivery services” explained Wilson. “Human nature and lower costs will easily shift 40% - 50% of deliveries to same-day. That is a huge market that should incent the U.S. Postal Service and/or the other large delivery companies to develop the same-day shipping services and infrastructure now. With their existing assets in people, vehicles and facilities the Postal Service only needs a compelling business case and market plan and the IRFDA will provide just that.
Though initially marketed and priced as a premium service, same-day delivery will soon be the least cost alternative once the delivery network is built out and volume reaches a critical mass. Transporting merchandise 30-40 miles across a metro area will be cheaper than every delivery option employed today. Everyone wins in the end as internet retailers of all sizes, from Walmart to start-ups, increase their profit margins through reduced delivery costs.” Look for the IRFDA at the IRCE 2012 in Chicago and visit their website at http://www.irfda.com for more information on their efforts to reduce the sources of friction involved in online shopping.
Steve Wilson, CEO
The Internet Retailer, Fulfillment & Delivery Association was formed to help eRetailers and fulfillment service providers of all sizes compete with the competitive advantages that the largest eCommerce enterprises will develop with their ever expanding national footprints. Their motto is “Cooperation, technology and openness to the benefit of all” and it will benefit all as decreased shipping costs and “friction” reducing services like same-day delivery will be enjoyed by big and small enterprises alike.
The goals of the IRFDA go beyond the near-term implementation of same-day fulfillment and delivery as we work at minimizing other sources of friction that hold back the market share of internet retail. Visit our website at http://www.irfda.com for more information.
About Steve Wilson
Steve’s broad technical and business experience has spanned postal automation systems, materials handling, manufacturing, telecommunications, information technology, and systems integration. This combination of logistics, IT and delivery systems experience provides the unique perspective that led to his innovative and extensive vision for internet retail back-office operations and the shirtsleeve experience to lead it to reality. He holds engineering and business degrees from Stevens Institute of Technology and Southern Methodist University respectively.