According to a Digital Commerce 360/Bizrate Insights post-holiday survey of 1,137 online shoppers, when consumers were asked: what improvements they would like to see from online retailers in 2021—and not just during the holiday season—deliver orders more quickly (45%) was a top choice.
Enter same-day delivery. Much like the rise of buy online, pickup in-store (BOPIS) and curbside pickup, same-day delivery is surging. In fact, the market for local last mile in the US is growing 32% per year according to Grand View Research – two times faster than ecommerce projections – as same-day deliveries become the standard.
In early 2021, 37% of retailers had same-day delivery, and 30% planned to add it by the end of the year. This makes clear that fast delivery is now a strategic necessity for every company that wants more online market share.
Retailers are having to adapt to better meet consumers’ growing preference for online shopping and their demand for fast, reliable fulfillment. In an August 2020 Digital Commerce 360/Bizrate Insights survey of 1,141 online shoppers, 21% said they ordered same-day delivery from Amazon while 14% selected the same-day option from retailers with bricks-and-mortar stores. The number of consumers selecting same-day delivery is on the rise and will only continue.
In a Digital Commerce 360 article, CommerceHub’s Senior Vice President of Strategy, Erik Morton, says, “If Amazon can do same-day delivery, then other retailers need to do it as well. Same-day delivery is something that traditional brick-and-mortar retailers should be spending money on and investing in—absolutely.”
What to do if you’re not Amazon
Retailers continue to deal with an influx of online orders that has put more pressure on their delivery logistics, specifically how to meet delivery promises as carriers also try to keep up with increased delivery demand.
To alleviate some of this pressure, retailers are partnering with same-day delivery companies to ensure fast delivery. Many now offer same-day delivery through Instacart, DoorDash and Postmates, an Uber Technologies subsidiary. This gives retailers the ability to move beyond store-based fulfillment and explore new digital services to give consumers shopping online more options for faster delivery. Collaborating on the last leg of delivery with same-day delivery companies can increase efficiency and improve the customer experience.
For example, retailers can use Uber Direct, a delivery platform for retail items, to help fulfill deliveries in the last few miles of their journey. Many times, a package does make it to the warehouse closest to the customer, but getting the order from the warehouse to them in the “last miles” can prove to be difficult. This is where a service like Uber Direct can make sure that customers get their items as soon as possible. Partnerships like this would by no means replace the need for larger delivery resources with carriers, but it is a viable option for retailers to help ensure on-demand orders can be delivered successfully.
And the momentum around providing same-day delivery options continues to grow. The most recent sign of this is DoorDash’s announcement of its DashMart virtual convenience store brand. DoorDash plans to rely on a team of full-time couriers to provide ultra-fast delivery. DoorDash will eventually offer this as a service to retailers.
On-demand delivery services help retailers achieve more rapid fulfillment closer to a customer’s location. Same-day delivery is the ultimate way to provide convenience to customers looking for a faster way to get the items they want, when they want them.
Learn more about how the CommerceHub network can help strengthen your online fulfillment strategy. Contact us.