Yes, e-commerce consumers want same day delivery stores. Currently, one of the leading third-party same-day delivery companies in the U.S. has partnerships with 750 retail companies, many of which are national chains. With 9.6 million active users, this delivery service relies on over 600,000 personal shoppers to fulfill and deliver orders on the same day. According to Mckinsey, the most sought-after customer segment for these services are young, urban, time-constrained consumers. In this article, I’ll explore the growing demand for same-day delivery among consumers and the benefits it brings to retailers. Additionally, I’ll discuss the implementation challenges that retailers face and provide useful tips for successfully incorporating same-day delivery services.
“I believe that the smartphone could be the supermarket of the future.”Apoorva Mehta
- Is There Really A Customer Demand For Same Day Delivery Stores?
- Is Same Day Delivery Right For Your Business?
- Implementation Planning Challenges For Same Day Delivery Stores.
- Assessing What eCommerce resources Are Essential For Successful Same Day Delivery Stores?
- Develop And Implement an Effective Same Day Delivery Model For Your Business.
Is There Really A Customer Demand For Same Day Delivery Stores?
So the answer to this question is a resounding yes. This is because in today’s fast-paced world, customers are increasingly looking for convenience and speed in their shopping experience. To illustrate, a recent survey concluded that 49% of shoppers say that same-day delivery makes them more likely to shop online. Further, FreightWaves referenced a survey from Roadie that found that 99% of retailers expect customer demand to require same-day delivery by 2025.
Same day delivery is now a whole lot more than just food delivery. Every type of retail store is now implementing same day delivery. To explain, some stores may have their own same delivery network, however, many retail stores are using 3rd party order fulfillment and last mile delivery service providers. Also, most stores and their third party delivery providers are either charging a flat fee or a subscription service for same day delivery. Surprisingly, all types of retailers are now offering same day delivery. To detail, see below for a list of major retail markets and example stores that are offering same day delivery today.
“I believe that the most enduring companies win because they are solving for the customer”Apoorva Mehta
Major Retail Markets Providing Same Day Delivery.
- Big-Box Stores: Walmart, Target, Best Buy
- Wholesale Clubs: BJ’s, Costco, Sam’s Club
- Drugstores: CVS, Rite Aid, Walgreens
- National Retailers: Bed, Bath & Beyond, Big Lots, Dollar Tree, Dollar General, Family Dollar, Five Below
- Clothes: Belk, JCPenney, Macy’s, Meiman Marcus, Nordstrom, PacSun
- Home Improvement: Ace Hardware, Home Depot, Lowe’s, Tracker Supply Company
- Specialty Retailers: Apple, The Container Store, Dick’s Sporting Goods, Michaels, Office Depot / Office Max, Petco, PetSmart, Sally Beauty Supply, Sephora, Staples, Ulta Beauty
- Gifts for Special Occasions: Edible Arrangements, FTD Flowers
- Convenience Stores: 7-Eleven, Casey’s, Circle K, Pilot, Sheetz, Wawa
- Special Handling Same Day Delivery. There are also same day delivery companies that offer same day delivery for products that require special handling. For example, Instacart is launching a “Big & Bulky” fulfillment capability. So this trend is likely to expand for the delivery of any product that needs special handling or installation.
- Food And Grocery Stores. The restaurant and grocery industry is the most mature market for same day delivery. In particular, DoorDash dominates this market – $40 billion in orders annually. Other key players are Uber, Dominio’s, Target, Walmart, and Grubhub. See MotleyFool for details.
For more on information on the stores that are now providing same day delivery, see TheKrazyCouponLady’s Who Has Same-Day Delivery in 2023? We’ve Got the Full Store List and GoodHouseKeeping’s 10 Best Grocery Delivery Services to Use,
“In our industry, that comes from three main sources. It comes from customers having access to the best selection. It means the customers have the best prices. And it means that customers have the best convenience. And we believe these are areas that are going to be enduring truths.”Apoorva Mehta
Is Same Day Delivery Right For Your Business?
This is an important question to ask as every business is unique. Specifically, you need to consider the costs of implementation and the resources required to provide an effective same day delivery service. Further if you are not currently offering a same day delivery option for your customers, you should at least consider it. Additionally if you are currently offering same day delivery service, the question to ask is is it the right type of service for you and your customers?
To explain in detail, see SC Tech Insights’ Same Day Shipping For Your Business: What You Need To Know Before Launching to delve into the benefits and the 7 critical questions for you to address before launching a same-day delivery service. Specifically, topics include same-day costs considerations, whether to outsource, target customers, delivery speed, inventory considerations, and order picking options.
Same Day Shipping For Your Business: What You Need To Know Before Launching. Considering same-day shipping for your business? Whether you operate a small-town general store or manage an eCommerce site with two-day delivery, it’s essential to determine if this service is the right fit for your business. Indeed, this is crucial because many of your competitors already offer same day shipping. Click here to explore the benefits of same-day shipping, assess the current market landscape, and delve into seven critical questions to address before considering providing this same day service to your customers.
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Implementation Planning Challenges For Same Day Delivery Stores.
There are a number of planning challenges associated with same day delivery stores. These include the cost of delivery, the logistics of getting picking customer’s order items, and the need for efficient inventory management. Planning is key for overcoming the challenges with implementing a same day delivery service. Moreover, you need to identify exactly what your same day delivery objects are. Further you need to identify how same day delivery will work with your current eCommerce customers. Lastly, you will need to close any gaps in your current supply chain to effectively support same day delivery. To list, see planning guidelines and gap analysis below:
- Define The Scope Of Fulfillment Requirements. First, you need to identify gaps in your current eCommerce operations that will need to be augmented. Specifically, this can include upgrades to systems, new system interfaces, new operational processes, and integration of any 3rd party service providers.
- Supply Chain Considerations. Need to consider what stores, suppliers, distribution centers, and new service providers will be needed to successfully implement the same day delivery service.
- Demand Considerations. You will need to consider how customers are receiving their eCommerce orders today. Specifically, this can include in-store pickup, curb-side pickup, ship-to-store, supplier drop-ship, and other-than-same day delivery. How will this fulfillment service mix change? What new operational processes, order fulfillment system changes, and system integration will need to happen?
For more on planning and implementing challenges for same day delivery, see Gartner’s Best Practices for Selecting Retail Distributed Order Management Systems.
Assessing What eCommerce resources Are Essential For Successful Same Day Delivery Stores?
In order for a same day delivery store to be successful, it is important to assess the necessary eCommerce resources you need. This includes the ability to process orders quickly, the ability to track orders in real time, and the ability to provide customer service. So are you ready to take your business to new heights by offering a same day delivery service? Before you dive into this fast-paced world, it’s essential to take a step back and assess what it truly takes to succeed. Imagine the satisfaction of seamlessly processing orders at lightning speed, tracking your orders real time, and delighting your customers with same day delivery.
If you are ready to start access your business’ ability to start offering same day delivery, click here. I have some great advice to help you get your business operations ready to provide same day delivery. By following these four startup tips, you will be on your way to starting a successful same day delivery service that will leave your customers raving about your brand.
Develop And Implement an Effective Same Day Delivery Model For Your Business.
Once you identify the necessary resources, the next step is for you to develop and implement an effective same day delivery model for your business. This includes setting up a reliable delivery system, training staff, and setting up an efficient inventory management system. To explain, below are steps to follow to develop and implement a same day delivery service.
1. Establish Relationships With 3rd Party Service Providers:
First, you must evaluate 3rd party delivery providers to determine if you will “buy or build” this new service offering. In most cases, it is best to “buy” , and thus establish a relationship with one or more 3rd party service providers. By selecting the right provider, your business can leverage their expertise and resources to improve customer service, satisfaction, and loyalty. However, it’s essential to carefully evaluate each provider’s capabilities and performance metrics to ensure they can meet your same day delivery goals.
2. Upgrade Order Fulfillment and eCommerce Systems.
If you are not outsourcing your same day delivery service completely to a 3rd party delivery company, you will need to upgrade your order fulfillment and eCommerce systems. Moreover, seamless real-time integration is needed to optimize order processing. Additionally, product fulfillment workflows can significantly increase efficiency and reduce delivery times.
3. Enable Data APIs With Existing Systems And New Systems.
As with your eCommerce systems, you will need to establish new data application program interfaces (APIs) with your existing and new systems to support same day delivery services. This can be a challenging and elongated process even if you have an experienced IT staff. However, this can be minimal if you are outsourcing to a 3rd party same day delivery provider.
The data APIs needed for same day delivery can be tricky as the data exchange needs to be timely, complete, and accurate. It is critical that businesses have real-time visibility into order processing, inventory management, shipping status, and delivery performance. As example of the complexity of setting up APIs for same day delivery, see Instacart Connect Fulfillment API documentation. These API options include scheduling, full-service shopping, delivery, pickup, last mile delivery, and dispatch last mile delivery.
4. Setup Operational Processes and Train Staff.
Setting up operational processes and training your staff is critical for smooth and efficient same day delivery. In particular, your staff must be trained on the latest technologies and operational procedures to ensure streamlined workflows and quality service. Moreover, your business should have clear guidelines on handling exceptions, managing returns, and handling customer issues.
5. Execute Multi-Stage Implementation Plan.
Finally, implementing same day delivery should be done through a multi-stage plan. In most cases, you should start with a pilot project where you select one location to implement and a limited number of product SKUs are involved.
A multi-stage approach sets you up for success. Specifically, it enables you to work out the kinks and validate the services that you will offer. Once the pilot project meets your satisfaction, then you can deploy same day delivery service to the rest of your operations. Also, you need a clear road map for technology upgrades, provider selection, operational changes, and staff training. Moreover, it’s essential to measure and track performance metrics continuously to ensure that the plan is on track and delivering the expected results.
For more information on retailers implementing same day delivery, see PetProductNews’ Same-Day Delivery Services Like DoorDash and Instacart Give Pet Retailers an Added Advantage.
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