Same day delivery: optimize your omnichannel strategy
Same day delivery is one the most rapid growing trends in the e–commerce world. If you haven’t considered it yet, you are missing a huge opportunity! In this article we are going to reveal all the secrets of Same day delivery and how to start offering this option right now.
Not only giants like Amazon and Alibaba, in fact, are decreasing delivery times, to guarantee to the final customer a perfect shopping experience. Even small e–commerce merchants are starting to consider services such as same day delivery (if they haven’t already introduced them).
Don’t forget that your buyers, if you have adopted an omnichannel strategy, can buy in your physical store, online, receive information via newsletters or perhaps pick up a product purchased on your site in the store.
However and wherever they place their order, what unites them is the desire for the object they long for to be immediately available.
The world is running faster and faster and the large e–commerce operators are making ordinary services that until a few years ago were extraordinary. They are, in fact, introducing a new standard, which you cannot ignore.
But what exactly does same day delivery mean? When is it possible for a shipping to be defined as such? What are the advantages and disadvantages of this service?
Let’s start our analysis by clearly defining what we are talking about. In the following paragraphs we will see numbers, examples and tips to make same day delivery your strong point.
What is same day delivery?
Literally, this type of delivery is defined as the sending and shipping of products in less than 24 hours.
This definition therefore includes not only orders that arrive at their destination by evening, if purchased in the morning, but also those delivered the next morning, within 24 hours of purchase.
This service certainly offers many advantages, but it also requires a lot of attention and a very high speed of order fulfillment.
An advantage is there for all to see: customer satisfaction. In fact, one of the main differences with physical stores is eliminated: the possibility of immediately having the purchased product.
Think how many potential customers (and we will see it better shortly, according to data) abandon e–commerce carts because the shipping takes too long. For this reason, same day delivery also means higher conversions of potential customers into real customers.
It is true that offering this service can be expensive, because it involves a considerable logistical and warehouse management effort, but if you are a small Merchant launching its proximity e–commerce you could rely on local Carriers or deliver nearby thanks to the support of your staff.
Finally, don’t forget that same day delivery, although it has been growing for some years, has not yet been adopted by all e–commerce companies. So it can represent a great competitive advantage to emphasize in your marketing campaigns.
After this introduction, let’s analyze the numbers in order to understand why the future of e–commerce also includes same day delivery.
Same day delivery: trends and statistics
The data speaks volumes: in 20 years, Amazon’s delivery times have decreased from 9 days to 1 day.
In 2000, buying online meant shelling out money for an item that we would have seen who knows when. Today, we can be almost certain that we will receive our product in 3-4 working days at the latest.
Unsurprisingly, until a few years ago (in 2016), 46% of consumers interviewed for a research declared that they abandoned the cart in case the delivery times were too long or undeclared. Furthermore, 34% (in 2017) still preferred to buy in physical stores precisely because of never-ending shipping times.
Yet very few (20% of interviewees in the US and 10% in Germany) would have paid more than € 1 extra to receive their product with same day delivery.
In short, customers want very fast delivery, but without surcharges. And, as you will understand, for you who would like to implement it in your shipping strategy it is instead a considerable cost.
Let’s see now what are the steps to optimize your supply chain and provide a unique shopping experience to your customers.
How to optimize your supply chain and introduce same day delivery in your e–commerce?
A service such as same day delivery can involve many obstacles: just think of the time it takes to find the product in the warehouse or the one for the Carrier to navigate the city jungle. In short, even if you offer this service, it is not certain that you will be able to keep your promise.
And, in the case of online purchases, even more than in a face to face relationship, the promises must be kept. They are the glue between you and your customers.
For this, you should think about an increasingly automated management of the warehouse and inventory, so that the availability of the items is confirmed in record time and packaging is done as quickly as possible.
Furthermore, if you are a Merchant starting out, an expression such as the Hub and Spoke model may seem completely new to you, but it is, in fact, about speeding up shipments by minimizing the necessary connections between large warehouses and small sorting centers.
Let’s take an example: Argos is a large retailer with nearly a thousand stores across the UK. An important slice of its revenues comes from online sales, so much so that it was the first British e–commerce to generate sales of £ 1 billion via mobile.
In 2013, Argos managers made a decision with important implications for the entire company: they decided to reorganize their supply chain to ensure faster and faster shipments. What did they actually do? They have structured nearly 200 warehouses and sorting centers according to the Hub and Spoke model, thus managing to reach 95% of British buyers with same day delivery.
This means £ 3.95 of shipping costs for customers, but with the possibility of having 20 thousand products from the Argos catalog in a very short time.
Another method of retrieval and shipping that many e–commerce companies are experimenting with is the Ship from Store: a part of the physical stores is used as warehouses to store and ship items.
Even if this method requires dedicated staff (otherwise store’s customers could be neglected), its great advantage is the great coverage it offers.
Whether you adopt the Hub and Spoke model or the Ship from Store, you increasingly have the possibility to get closer to your customers, meeting their requests.
But which brands and which platforms are already offering the same day delivery service successfully? Let’s see it together.
Same day delivery: the cases of Amazon and Target
There is no doubt that the customer must be “trained” to perceive the value of a fast shipment, without taking it for granted. That’s why Amazon has made same day delivery available to Prime subscription buyers, clearly outlining the terms of service.
First, not all products on its platform can be delivered in less than 24 hours. In addition, to receive the order by 10 pm of the same day, the customer must complete the purchase by midday.
It should also be noted that same day delivery is subject to limitations during holidays such as Christmas or New Year.
At Target, instead, they decided to do a slightly different thing. In addition to offering superfast shipping if you sign up for a subscription, they have decided to meet customer needs by offering the Drive Up service.
Drive Up is nothing more than a form of pickup in-store, supported by a Target employee, but above all, very fast. In fact, within 2 hours it is possible to collect any item, among those immediately available, in one of the 1750 stores throughout the United States.
Which Carriers offer same day delivery?
If you want to offer the best possible service to your customers, you cannot rely on your own strength alone. You also have to choose the right Carriers to manage last mile logistics.
Not all Carriers, in fact, guarantee same day delivery service, and those that offer it have conditions that you must respect.
For example, same day delivery offered by FedEx in the United States has several options: delivery in urban areas, delivery within 4 hours, or by 5 pm.
UPS offers a very fast delivery that covers North America, Europe and some major cities, guaranteeing affordable prices for heavy orders.
Even DHL and TNT offer this service. As for DHL, you can ship your products on the first available flight to over 220 countries around the world. Moreover, the collection of items to be sent takes place also during holidays and weekends.
TNT guarantees shipments even faster than same day delivery, complete with instant proof of delivery.
So remember: before reorganizing your e–commerce starting from this so requested service, you have to carefully consider which Carrier to rely on.
We now come to a final fundamental focus: communicating to the customer the great variety of delivery options, including same-day delivery.
This is where ShippyPro comes in. Not only does it helps you with tracking requests, printing labels and returns management, but it also offers you support when it comes to showing the customer all the available delivery options.
Offer the greatest number of delivery options to your customers
Omnichannel approach means that you and your customers can stay connected at any time, across multiple channels. This connection cannot be limited only to purchase methods, but must also include delivery options, so that the buyer can freely decide whether to collect the item in the store, in a locker, or wait for the product comfortably sitting on his sofa.
At the time of Checkout, your customer should have a wide range of possibilities, in order to choose the most suitable at a given time, based on certain needs.
People abandon their cart if they don’t find the ideal delivery option.
There are many e–commerce companies that are very well managed from this point of view and your customers really risk going elsewhere.
But there is a feature to improve the delivery experience and increase conversions: ShippyPro Ship & Collect.
If you integrate this functionality into your e–commerce, buyers will be able to compare the shipping rates for each delivery option and immediately know the distance to the nearest pickup point.
For your part, to integrate Ship & Collect you will not need technical knowledge and you will meet the wishes of your customers who will no longer go to other online stores but will complete the purchase on your website.
ShippyPro is the complete shipping software for online and offline retail. With Label Creator, Track & Trace, Easy Return and Analytics features, our software simplifies your shipping operations. ShippyPro integrates with over 160 couriers and 80 sales channels, making it compatible with a wide range of products and use cases.