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. In this article, we’ll 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.
The Benefits Of Offering Same-Day Shipping Vs Two-Day Parcel Shipping Vs Store Pick-Up.
Offering same day shipping can be a game-changer for your business, giving you a competitive advantage over others. Customers appreciate the convenience and speed of receiving their orders sooner rather than later, which can lead to increased customer satisfaction and loyalty.
While two-day parcel shipping and store pick-up are still popular choices for many consumers, same day shipping has the potential to attract more customers who value rapid delivery – especially for time-sensitive items. Ultimately, providing a variety of options can cater to different preferences and ensure your customer base remains satisfied. To detail, below are four key benefits for a business to offer same-day delivery.
4 Benefits Of Offering Same Day Shipping
1. Add New Customers Who Predominantly Use Same Day Delivery.
You will add new customers who predominantly buy from merchants who offer same day delivery. Indeed, it is amazing how many shoppers are even willing to pay for same day shipping. For example, a recent survey noted that 41% of consumers are willing to pay a charge for same-day delivery.
2. Compete Effectively Against eCommerce Businesses.
Whether you are a local business or eCommerce business, you have a competitive advantage by offering same day shipping over traditional 2-day eCommerce deliveries. For example, a survey cited over 75% of consumers desire same-day shipping. However, only 50% of businesses are offering same day shipping.
3. Increase Sales For Time-Sensitive Products.
If your business sells perishables or other time-sensitive products, offering same day delivery will result in an increase in sales. Indeed, a recent survey showed that seventy percent of consumers (71%) are making online grocery purchases.
4. Increase Brand Loyalty.
Many of your repeat customers may not need same day shipping all the time, but sometimes they do. So by your business offering same day shipping, your customers will buy from you in these circumstances instead of going elsewhere.
Do Customers Really Want Same Day Shipping?
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. Also, most retail markets are offering same-day delivery. Specifically, this includes big box stores, convenience stores, national retailers to name a few. Click here, for more information on the dramatic increase in retailers providing same-day delivery services to their customers.
Questions You Should Ask Before Offering Same Day Shipping.
Before diving into the world of same-day shipping, there are important questions to consider for your business. To detail, below are some things for you to consider before you launch a same-day delivery service for your customers.
1. Costs – How Do You Cover The Costs Of Same Day Delivery?
The options include charging a fee, offering a subscription service, or offering it as a free service. Additionally, many stores have a minimum order level with same day delivery.
2. Outsourcing – Should You Use A 3rd Party Delivery Service?
There are a lot of benefits to using a 3rd party delivery service. Specifically, 3rd party delivery services can usually provide better service levels for less cost as well as minimum startup costs and minimum time to implement. Additionally, 3rd party delivery services help you market your store and acquire new customers. For most businesses it would be hard to justify managing your own delivery services. However, there are exceptions such as Dominio’s Pizza that has provided same day delivery for decades. To detail, see SC Tech Insights’ What Is A 3PL? Compare Types, Capabilities, Tech, Best Value to explore using a third party logistics (3PL) provider.
3. Customers Serviced – Should You Offer Same Day Delivery To All Customers?
This usually depends on the proximity of your store or warehouse to the customer. For example, many retailers only offer same day delivery in select metro areas. This is because urban areas will have sufficient customer density as well as more stores or storage facilities for supporting same-day shipping. Also, there are some third party same day delivery providers that offer micro-warehouse. For example, Amazon and Instacart can provide these types of services.
4. Products Offered – Should All Products Be Eligible For Same Day Delivery?
This is dependent on several factors to include: availability and storage of product in close proximity of the customer, cost justification, and customer desirability for same day delivery of select products.
5. Speed Of Delivery – How Fast Should Your Same Day Delivery Be?
There may be some cases where 120 minutes or less is feasible and highly desirable. For example, Instacart provides this as an option for an additional fee. In most cases, the norm is to provide 2-hour or more same-day delivery service as well as a 2 hour delivery window. Obviously, the key thing is to meet your delivery commitment. Remember, you need to flawlessly process customer orders, pick each order, and get it delivered. To detail, see SC Tech Insights’ eCommerce Supply Chain Advice For Reduced Click-To-Delivery Time And Costs for more information on setting and meeting delivery commitments.
6. Inventory – Should You Stock A Same Day Eligible Product In A Warehouse Or In Your Store?
This depends on a lot of factors. For instance, it is easy to start offering same day delivery from your store, but it may be less efficient to pick the order and pickup from the store. Also, you could have problems with availability if an in-store customer buys the product before you pick it.
7. Order Picking – If The Product Is in Your Store, Should Your Staff Pick It Or the Delivery Driver?
You can probably save money, if your staff picks it. Also, your staff may know more about product and substitutes than a gig driver. However, this may require more in-house system upgrades and data API integration to your same-day delivery service.
For more information of same day delivery to include benefits and more planning considerations, see my article, Same Day Delivery Stores. Also, for more articles from Supply Chain Tech Insights, see more stories on eCommerce and transportation.
Greetings! As an independent supply chain tech expert with 30+ years of hands-on experience, I take great pleasure in providing actionable insights to logistics leaders. My background includes implementing 100s of innovative solutions using emerging technologies and a data-centric development approach. I have also provided business intelligence (BI) solutions for 1,000s of shippers. For more about me, click here.