Brands that offer fast delivery options (same day, next day, or within two days) experience improved outcomes -- Two-day or faster delivery options are correlated with a 10.5% uplift in conversion rates and an 8.9% increase in repeat purchases, according to a new study by Jitsu and Coresight Research. Meanwhile, 45% of the consumers surveyed said they would be unlikely to purchase if the delivery speed was too slow, while two-thirds of consumers said they would be unlikely to make a purchase if the delivery cost was too high.
“This report makes clear what we’ve always known at Jitsu: The delivery experience is fundamental to the overall customer experience and significantly impacts everything from brand loyalty and customer lifetime value to a brand’s bottom line. That’s why last-mile delivery is so crucial to a brand’s success,” says Raj Ramanan, CEO, Jitsu. “The brands that are going to win big will be the ones partnering with a last-mile delivery provider that can ensure fast deliveries, offer end-to-end transparency throughout the delivery experience, and leverage advanced technology capabilities to boost the customer experience—all while keeping delivery costs in check.”
Key takeaways:
- Industry analysts forecast U.S. retail e-commerce sales will reach $1.7 trillion by 2027 and account for more than 20% of overall retail sales.
- 84% of brands cite cost efficiency as the top or second most important factor when selecting delivery partners. Three in five brand executives reported that 30% of their supply chain costs are connected to the last-mile portion of the delivery experience.
- The “quick delivery option” (within two hours) accounts for a significant portion of overall deliveries (14%), but is only provided by a quarter (26%) of the brands surveyed. The same is true for same-day delivery options — these account for 18% of all deliveries, but just over a third (34%) of brands offer same-day delivery.
"Consumers expect to be able to find great deals online and they have been conditioned to expect free and fast shipping,” says Deborah Weinswig, CEO and founder, Coresight Research. “Retailers with high shipping costs and slower delivery times are likely experiencing more cart abandonments as consumers search for more competitive shipping options that can arrive next-day or same-day. Retailers that are able to control last-mile delivery costs while also providing fast and reliable service will have an advantage."
