Now more than ever, keeping tabs on consumer behavior is a top priority. With so many options available for delivery within the day and even within the hour, the call for retailers to offer same-day delivery is needed to stay competitive with other options currently available at consumers' fingertips. The same-day delivery services global market is set to grow from $5.14 billion in 2021 to $6.43 billion by the end of this year at a compound annual growth rate of just over 25%. This data indicates that if retailers are not currently offering same-day delivery services now, they are definitely planning on doing so in the near future to maintain a competitive edge.
Below are four key benefits of offering same-day delivery services for both the retailer and the customer.
Loss and theft prevention
Package theft and organized retail theft are consistently two large issues facing retailers and consumers. In 2020, out of $3.1 trillion in brick-and-mortar sales, $49.6 billion was lost to organized retail crime, leading to a high shrink rate and less inventory in the physical store. Third-party software solutions work to not only aggregate same-day delivery in terms of the physical delivery but also facilitate the delivery experience by allowing customers to select convenient delivery times. By providing the options for timed delivery and same-day delivery, these technologies ensure that the customer or someone in their household can be home to retrieve the package, thus minimizing theft.
A more cost-effective option
Over the last three years, customer speed and instant gratification have transformed the retail experience. When customers began seeing that they could use an app to order food from their favorite restaurant and have it delivered in an hour by a local delivery driver, they began expecting the same service from their favorite retailers. This paradigm shift affected both the retail and delivery industries. Expectations from the food industry have transcended into the retail industry, creating a better customer experience and more cost-effective delivery methods for retailers.
Same-day delivery is less expensive than the standard 3- to 5-business day delivery option. Not only does same-day delivery require much less manpower than standard delivery, it also only requires one mode of transportation, bringing down fuel costs and surcharges for both retailers and customers. Additionally, it helps create jobs by utilizing local drivers through delivery services. Rather than being shipped from a large warehouse far from the customer, the item typically comes from the closest available store within the delivery radius.
Customers are willing to pay
Forty-one percent of shoppers reported in 2019 that they would be willing to pay more for same-day delivery. The conditional need for items immediately has become seemingly priceless for customers, while leaving little to no financial implications for the retailers. By integrating with their current platform, third-party delivery solutions allow retailers to offer same-day delivery and delivery windows. Additionally, this technology creates a multi-carrier approach where retailers can access all large and small carriers and offer solutions based on volume.
Enhanced curbside pick-up is also a same-day option
While curbside pickup is standard practice for many retailers, especially now in a post-pandemic environment, there are ways that retailers can use technology to upgrade this experience for consumers. The main way to enhance this experience is by reducing that in and out time for the customer. The shorter the time the customer spends waiting, the less friction there is in the experience. If a customer receives a seamless experience, they will likely use this service again. Third-party solutions implement geofencing services that can alert the retailer when a customer is en route to the store so that their items can be ready and waiting upon arrival.
The future of same-day delivery
Same-day delivery is just the tip of the iceberg when it comes to the convenient delivery options that will become available to consumers in the future. Delivery speed and convenience will only continue to get shorter and more efficient. Drone delivery technology is already being utilized to deliver small products and as that technology advances, the use case will only increase.
As people sink back into the busyness of life and have a variety of convenient options at their disposal, they will no longer be willing to go out and run an errand when there are services available to do that errand for them for the right price. As we look to the next 5-10 years as these technologies advance, consumers will be conditioned to expect not only same-day delivery options but same afternoon or even same-hour delivery.