Retailers Fighting to Compete Via Same-Day Delivery

It’s not likely that when Same-Day Delivery reaches multiple retailers, that the service is going to have in level of minute growth.  Amazon has essentially pioneered the service and several big name e-retailers are taking strides with their respective online e-commerce, looking to implement same-day delivery and compete with Amazon.  A new study from research company L2 shows there is every reason for retailers, if they want to keep up with Amazon, to enter the fast delivery market.

Multichannel Merchants recently reported via L2 that less than 20% of the 97 retailers across eight sectors offer same-day delivery, yet 40% of shoppers have said they would take advantage of it if it was an option.  Also, 25% of shoppers said they would abandon their cart if same-day delivery was not available.

The research company stated, “Well capitalized startups such as Uber, Postmates and Deliv are filling the void, allowing retailers to offer (same-day delivery) without investing in the infrastructure. Yet less than a fifth of retailers (tracked by L2) utilized third-party delivery partners. With no dominant player in the same-day delivery space, there is still healthy competition that allows both retailers and consumers to find lower costs than traditional shipping partners.”

It makes sense for retailers to jump into same-day delivery to keep up Amazon.  L2 mentioned Macy’s as one retail giant that has one of the best infrastructures to be successful with it.  Macy’s has over 880 locations, which means online orders can be easily fulfilled via department stores that are in close proximity to the end customer.  In 2014, Macy’s partnered with Deliv to roll out same-day delivery in eight major US markets, including San Francisco, Los Angeles, Seattle, Houston, Washington DC, Chicago, New Jersey, and more.  Now the retailer is performing last-mile deliveries in 17 markets.  With over 880 stores nationwide, Macy’s is ideal to thrive with same-day delivery.

L2 went on the say regarding Macy’s, “Furthermore, the Deliv partnership enables affordable same-day delivery for Macy’s customers.  The retailer maintains its $99 free shipping threshold and charges only $5 for same-day delivery where available.”  Pricing is huge when it comes to same-day delivery, being the deciding factor on whether it will be a sustainable service.  The low $5 charge doesn’t seem like a lot, and it’s not supposed to for the shopper.  It is the volume of same-day delivery that ultimately makes the difference for the retailer.

L2’s study shows that same-day delivery is key for retailers in today’s e-commerce, especially with how Amazon is driving more shopping to be done online, instead of at physical stores.  To implement last-mile deliveries, a retailer can partner with a Same-Day Courier like AQuickDelivery to get their program off the ground.  The Atlanta Courier services the Atlanta and Metro-Atlanta area, in addition to the ability to roll out same-day solutions nationwide.

Reference: 2.8.17, www.multichannelmerchant.com, Mike O’Brien, Same Day Delivery An Opportunity Area for Retailers vs. Amazon