Over half of retailers offer same-day delivery and this is likely to rise to 65% by the end of 2019.
Same-day delivery should be designed to provide a fast yet affordable delivery service to densely populated areas. However, this new trend is currently limited by the rising cost of fuel, labour, and maintenance. This means that although customers are demanding same-day delivery, it might not yet be feasible on a wide scale.
The dilemma businesses are now facing is how to give customers what they want in a sustainable way.
This post takes a look at the world of same-day delivery and what customers are now expecting. This will allow your business to get ahead of this growing trend and build a wider, more loyal customer base.
Combining the Convenience of Online Shopping with the Access of Brick-And-Mortar Stores
E-commerce has risen exponentially and it’s no surprise that same-day delivery will play an ever-increasing role in 2019-2020 strategies for business owners.
For retailers to be able to retain customer loyalty while simultaneously attracting new clients, they must meet their primary demands, namely, rapid delivery services.
Unsurprisingly, almost two-thirds of retailers are reportedly planning to offer same-day delivery within the next two years. Coupled with the fact that half of shoppers claim they would be happy to shop online if they could guarantee same-day delivery, even if they had to pay a premium for the service, the colossus that is e-commerce continues to hammer nails in the coffin of brick-and-mortar stores.
Same-Day Delivery: The Stats
In a recent survey, it was found that more than three-quarters of customers using DPD desired same-day delivery as an option at the checkout. What’s more, almost two-thirds were willing to also pay a premium for this luxury, and four-fifths would happily switch from a regular brand to a lesser-known brand that could offer them this level of service.
That is an astonishing amount of lost revenue for retailers who are currently not offering same-day delivery and shows a massive market ready to be captured for those who can.
The numbers really do speak for themselves – here are a few statistics that demonstrate the power rapid delivery truly holds at the moment:
- 56% of online consumers between the age of 18-34 years expect to have same-day delivery. Whereas 61% of consumers are willing to pay more for same-day delivery
- 49% of shoppers say that same-day delivery makes them more likely to shop online
- 96% of customers consider “fast delivery” to mean same-day delivery
- 80% of shoppers surveyed want same-day shipping, while 61% want their packages even faster — within 1-3 hours of placing an order.
- More than 25% of shoppers would abandon a cart online if same-day shipping wasn’t available.
All these facts point to the current situation of the global economy: people want things yesterday.
Many of us will no doubt remember patiently waiting twenty minutes just for the dial-up internet to connect. In those days, we could only dream of fast-loading browsers and instant purchases.
We now live in an age where we don’t even need to carry cash because tapping a card or presenting our phones is sufficient to make a payment. We’re stepping into an age of instantaneous experiences and if you want your business to compete and keep up with the changing nature of commerce, same-day delivery is becoming a must-have feature of business.
The Demographic Trends Fuelling Rapid Delivery
It’s easy to think that the trend in rapid delivery is confined to higher-earning wage brackets, or only for the ‘quick’ retail markets like clothing and produce.
But the stats show that desire for and willingness to pay for same-day delivery is much more general.
Those on a higher pay scale are just as likely to pay for same-day delivery as those closer to the breadline, and with the natural rise of millennial wealth and penchant for online business, there seems to be an increasing likelihood to continue on this upward trend across a broader range of industry sectors.
One interesting statistic is that 18% of people (that’s nearly one in five customers) claim that same-day delivery is the most important factor when choosing one supplier over another.
Now, 18% may not seem like much but it does show an increasing trend in people putting a preference for a delivery service over the type of merchandise available and, more incredibly, over the quality of the merchandise itself.
This means companies are being forced to investigate the plausibility of same-day delivery or be left in the wake of the companies willing to.
The Role of the Global Giant, Amazon
One of the biggest drivers in the same-day delivery space is the global giant, Amazon.
Amazon has really pushed the boundaries of the logistical means of storing and delivering their products at an astonishing pace. It’s Amazon that is really driving the need for other retailers to keep up.
While Amazon continues to raise the bar, it’s unlikely that smaller operations can rival them in terms of volume of sales or revenue. But this doesn’t mean the domain of same-day delivery is reserved for the global powerhouses of retail. Perhaps, in fact, even the opposite.
If your business is able to offer quality products with time-critical delivery, it’s going to put you in a position that may well be above and beyond your competition.
How to Compete in the World of Same-Day Delivery
The general consensus of opinion is leaning toward delivery speed as being of equal or greater importance than the product itself. And moving into the future, this may be the key to opening up a vast new market for your business.
While companies are always going to need to compete on price, quality, and even availability, delivery speed is rapidly catching up as a major rivalling tool for businesses to consider in order to get ahead of the competition.
If you’re interested in finding out how our same-day courier services may work for your business, get in touch with Same Day Dispatch Services now. Tel: 0800 999 1010.
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