In an epic turnaround, Target’s recent collaboration with Shypt to fulfill orders on the same day is proving to be a raging success. Retail.com reports that 1 in 5 Target’s customers opt for same-day delivery. Consequently, there has been a 34% uptick in the sales recorded for Q2 by Target. It is abundantly clear that consumers reward brands with expedited delivery options.
While Amazon and Walmart are neck-deep in a delivery war in an effort to lure more buyers, small businesses are still struggling to keep up their delivery promise. It is now incumbent on online retailers to offer free and fast delivery. Following the success of Target’s same-day delivery campaign, stores such as Brooksrunning.com are taking the plunge. Recently Brooks launched deliver-within-24 hours campaign across 10 locations in the US.
If you are a retailer contemplating offering same-day delivery option, here’s why you should say “I do”:
1. Same day delivery is the new next-day delivery: The next day delivery option is almost history. Customers want their orders now – delivered at their doorstep. They are willing to pay a premium for the convenience. In fact, according to the McKinsey report, 23% of online shoppers do not mind paying additional shipping fees to receive their parcels on the same day. Same day is no more a luxury but a necessity. The customer’s appetite for a speedier delivery option is at an insatiable level. If retailers fail to meet them atleast halfway, they are at risk of losing their business.
2. 65% retailers offer same-day delivery: More than half the online retailers are already offering same-day delivery. Understandably shoppers are spoilt for choices. Online shoppers have the luxury to cherrypick the brands they want to shop from. They might ditch a brand in favor of another, solely based on expedited order-delivery option. The ability to fulfill the order on the same day does move the needle in your favor.
Competition makes us all better, and it’s always going to be there,”
says XPO’s Hitt.
3. Speedy fulfillment can be a revenue driver: Last-mile delivery holds the key to winning customers. The faster the delivery, the more customers lap up your product. Although it requires a high-level precision in predicting inventory and agile logistical decision-making skills, a boost in the sales revenue makes it all worth the effort.
E-commerce shopping isn’t a trend – it’s a fundamental part of retailing today in the U.S. and is growing exponentially worldwide:Frederick Smith,CEO, FED
To offer a superior order-delivery experience, retailers may have to re-think their entire supply chain process. The complexity and the enormity of the task can easily deter you from taking the next leap on the last-mile delivery front.
Let’s break it down and consider a few points that can ease the transition to offering same-day delivery
- Set a clear cut-off time : Fulfilling your customer orders in a short span of time requires massive planning. Stating a cut-off time for the order to be eligible for same-day order delivery will help you handle fulfillment better. Getting your customers to place their order by 1 pm or 3 pm, will give you enough time to fulfill them with ease.
On FTD’s Shipping page, the cut-off time is clearly mentioned
2. Delivery to select zip codes based on target customers: Go where your customers are. Analyze who orders your product the most. Are they clustered around a specific geographical location? Then start with offering same-day delivery for those zip codes. Either partner with a local order fulfillment company or tie-up with a local warehouse.
Macy’s offers same-day delivery for more than 30 locations in the US
3. Offer BOPIS ( Buy Online Pick Up In-Store): If you have a raft of retail stores sprawling across the city, BOPSIS is for you. Walmart and Target have been leveraging their physical store presence to fulfill orders. Online shoppers want to seamlessly glide from experiencing the product in-store to placing an order online.
Nordstrom offers an in-store pick-up option for online shoppers
The good news is that you don’t have to be Amazon or Target to jump on the same-delivery bandwagon. You can opt for the same-day delivery option with your existing carrier.
Let us explore the same-day delivery services offered by FedEx, UPS, and DHL.
FedEx Same Day Delivery
FedEx offers a variety of services for businesses requesting same-day delivery of their packages. The services offered are priced anywhere between $18 and $35. The same-day delivery fee is proportional to the distance between the destination point and the dispatching center.
Same day delivery offered by FedEx can be categorized broadly into 3 services:
- FedEx Same day Direct: As the name suggests, FedEx same day direct is the right choice if you want your packages delivered without any stops in-between. Although available only for select zip codes, the service is available 24/7 for packages weighing up to 150 lbs.
- FedEx same day city: FedEx offers 3 services based on speed and shipping fee for package delivery in cities. FedEx same day city priority: Shipments that need to be delivered in a matter of few hours can be shipped through FedEx same day priority.
- FedEx same day city standard: FedEx same-day standard guarantees delivery before 8 pm if the packages are ready to be picked up before 4 pm.
- FedEx same day economy: While standard and priority are available on all days and 24 hours, FedEx same-day economy is available only from Monday to Friday. Moreover, only consignments slated for delivery in the 45-mile radius are eligible for FedEx same day economy.
- FedEx same day: Whenever you want to ship your order cross country on the same day, FedEx same day is a great option. You can ship packages that weigh up to 150lbs across all the 50 states in the US. For heavier packages, FedEx same day Freight is available.
In order to make avail of same-day service, businesses have to place a request by registering for fedexsameday.com with their account number.
UPS Same Day Delivery
UPS same day services are bundled together with UPS critical deliveries. There is only one service that is allotted for critical and same-day delivery: UPS Express Critical.
But UPS express critical claims to offer a suite of delivery options for shipments of all sizes and weight.
Most prominent same-day services that are offered by UPS Express Critical are:
- Air: Also known as the next flight out, this service offers same-day delivery across all major cities in the US.
- Standard: This is a service that transports packages through ground across all the states. Standard is a point to point delivery service with no stops in-between.
- Hand Carry: Whenever you need a dedicated courier for your shipment, Hand Carry is your go-to option. This is especially useful for orders of high value that need constant monitoring during transit until drop off.
DHL Same Day Delivery
DHL unveiled a same-day delivery service a couple of years ago – DHL parcel metro. DHL Parcel Metro is an initiative undertaken by DHL to exclusively cater to the growing delivery requirements of E-commerce businesses. Last-Mile logistics is a game-changer for eCommerce. And DHL has designed the same-day delivery service with a host of features that enables retailers to offer a superior customer delivery experience.
For example, the DHL Parcel metro offers real-time visibility of shipments in transit. This means your customer always stays in the know of the package location. Additionally, benefits such as API integration for label generation and customizable tracking solutions have been specifically curated for e-commerce businesses to gain an edge over their competition.
Apart from major shipping carriers, a bevy of local couriers also help retailers fulfill their order deliveries within hours of order placement. To name a few, Deliv, Postmates aims at helping retailers compete on the same-day delivery front.
Expedited delivery comes at a hefty price to eCommerce businesses. Along with rising shipping costs, adding a same-day delivery fee can make a bigger dent in your bottom line. Measuring potential ROI from offering same-day delivery service can help you visualize projected value add to your business.