Long gone are the days when it would take a week for something you ordered on the internet to arrive at your home. As if a two-day delivery window were not fast enough, same-day delivery is now revolutionizing the way we shop. In the last few years, more companies are trying to provide this service to their customers, using carriers such as DHL, FedEx and UPS.
Demand for same-day delivery is only increasing, with consumers placing a high value on this service. Online consumers perceptions of shipping continue to change and e-retailers continue to raise the bar. According to a 2016 study conducted by Deloitte, only 42% of respondents considered 3-4 shipping to be ‘fast’ (as compared to 63% the prior year). The majority (83%) of shoppers characterized fast delivery as two days or less.
The current industry standard is 2-3-day delivery windows, but the next step is affordable same-day delivery that will give consumers the convenience of online shopping with the benefit of having the item immediately, as with brick-and-mortar stores. The ‘last mile’ is positioned to become even more important to online retailers as they compete to offer the best and fastest delivery of their products.
Retailers with Same-Day Services
Several retailers are now partnering with their carriers to be able to offer same-day services. And while this offers convenience to the customer, it comes with major challenges and logistics, staffing, and cost considerations.
Amazon: Amazon is the clear leader of the pack, with billions invested in this service and new distribution centers in several states that will allow the online retailer to reach more major markets, quicker. Every online retailer is now trying to reach the bar that Amazon has set, with very few being able to meet it on the scale Amazon can.
Walmart: Walmart is expanding their online business to be able to compete with Amazon. The retail giant is now partnering with Uber, Lyft, and Deliv to test same-day deliveries. However, minimum order amounts apply.
Google Express: Consumers can order a range of products and get same-day delivery in certain metro areas. Customers pay a flat fee per year, or by delivery.
Even smaller, non-giant retailers, such as Nordstrom and Barnes and Noble, are offering same-day services in select areas. If you live in Manhattan and need the latest Smartphone, for example, Verizon Wireless will deliver.
Carriers Meet the Demand
To meet the demand for faster delivery turnaround times, carriers are expanding their services. For example, UPS has announced that it will begin accepting and delivering ground packages on Saturdays in certain large metropolitan areas. And with Saturday delivery becoming more commonplace, what about Sunday delivery? As it turns out, Amazon and the USPS are already on it. This partnership is allowing Amazon to deliver seven days a week in many areas.
The bar continues to rise in terms of delivery turnaround times. As more retailers find ways to make same-day delivery work financially, it will become more common.