65% of Retailers Will Offer Same-Day Delivery by 2019

Small businesses are always looking for ways to have a competitive advantage in the market. Now they are not only competing on price and customer service, but also on speed.

According to a recent report by Go People, a Sydney-based on-demand delivery and courier startup, 65% of retailers will provide same-day delivery services by the year 2019.

“Globally speaking, same day delivery is no longer just a concept. Instead, it’s the standard practice in many industries nowadays,” writes Nick Hartman, Marketing and Communications Manager for Go People, on the company’s blog. “Fashion retailers, food and beverage companies, medical suppliers, car accessory manufacturers, and a lot more are now offering same-day delivery service to consumers.”

Demand for Same-day Delivery Services Rising

If you regularly make delivery transactions for consumers, one of the things you should be focusing on is meeting your customers’ demand for fast delivery service, says Hartman.

For many customers, who are doing most of their shopping online, same-day delivery is a key factor they look for before making a purchase. Go People says as much as 61% of shoppers are willing to pay extra for the convenience same day delivery brings, including saving time and a trip to go pick up the goods.

From a business perspective, same-day delivery increases customer satisfaction and can give you a lot of repeat business from customers. In fact, offering same-day delivery can help your business gain a competitive edge over 85% of other industry players, the company says.

Businesses that have same-day delivery capabilities position themselves well to attain twice as much conversion and significant increases in year-over-year sales.

“Whenever you deliver on your promise to make their orders immediately available for your customers, you are making a good impression that will help keep your brand on top of their mind,” Hartman adds.

Challenges of Fulfilling Same-day Delivery

About 41% of merchants are already offering same-day delivery, but the service is not without its challenges. Delivering customers’ orders within a few hours, or within a certain time window on the same day can be quite costly and a logistical nightmare if not handled properly.

“It’s very hard and expensive,” Daphne Carmeli, chief executive of Deliv, a same-day delivery startup based in Silicon Valley, told Inc in an interview. Carmeli was responding to rumors that eBay was preparing to kill its same-day delivery service, eBay Now, a claim eBay has denied.

Carmeli observed that eBay’s challenges implementing same-day delivery stemmed from paying too much for couriers and its process not being efficient. Moreover, not enough people have been using eBay Now. These are common challenges small retailers also face when developing same-day delivery.

Small retailers not only need to lure customers to their online or physical store, but also get those orders out fast. Problems arise when small businesses don’t have the resources, capital or staff required to execute such a service.

“If you’re selling something for $20 or $30 and you’re paying minimum wage [to your courier], I would assume the margins are pretty thin,” Kerry Rice, an analyst with investment bank Needham & Company tells Inc. “You really start to eat into what’s profitable.”

However, if you are able to overcome the challenges of implementing same-day delivery in your business, and your customers are actively asking for the service, it is well worth the effort. You could get a lot of mileage in putting same day delivery at the heart of your operations, says Hartman.