20 Jun, 2018 By Wayne Wang
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How Same-Day Delivery Boosts Business Revenues

Product deliveries were introduced by businesses to keep up with the changing and ever-growing demand of their consumers. Even before online shopping became more rampant and customary, failing to deliver—so to speak—means losing potential customers and revenue.

Customers want fast service because their lives are equally fast-paced. This might also be the reason why many courier companies are starting to offer same-day delivery. Naturally, when it comes to promptness, nothing beats getting to the customers within hours after they have placed their orders.

While same-day deliveries have existed in context to food deliveries, it was only ten years ago when it was applied to e-commerce in its entirety mainly due to improvements in technology. The Internet, mobile gadgets, and even transportation all made things easier, more efficient, and faster.

In fact, a survey conducted by Invesp showed that 51% of companies are currently offering same-day deliveries. The most common reasons for consumers to opt for this is due to the urgent need for the item and for being a free delivery option.

Same-day deliveries are not only beneficial for customers but businesses as well, as this service yield fruitful outcome for both parties.

 

1. Meet customer expectations

The same study by Invesp shows that 56% of consumers expect businesses to offer same-day delivery, while 80% actually want it to be mandatory instead. As mentioned, consumer preference is evolving, and same-day delivery is a way to keep pace.

In addition, cost, speed, and convenience of delivery influences “repeat purchase, basket size, conversion rates, and customer lifetime value,” as reported by market researcher Forrester. Therefore, same-day shipping influences customer service and reinforces brand loyalty further.

 

2. It can serve as an incentive

Around 25% of shoppers say that they would likely abandon online shopping if the store doesn’t offer same-day shipping. This only means that making same-day delivery part of your offer can incentivize customers to continue with their transaction.

As a business, you can attract customers and keep them in the process for your own benefit by making this option available.

 

3. Customers are willing to pay more for same-day delivery

Buyers are so determined to get their orders faster and that they would pay extra. In fact, PwC’s 2018 Global Consumer Insights Survey reported that 88% of the respondents are willing to pay more for same-day delivery. This means that whether you offer it for free or with an additional fee, customers are likely to grab the opportunity just to receive their orders in a jiffy.

Additionally, customers will likely to do business with you instead of your competitors who do not offer this option. However, both choices have its pros and cons, so the decision of which option to implement depends on the nature of your business.

 

4. Hiring a delivery partner is cheaper

Having the option to ship to customers does not come cheap, even for established stores. Hiring and training additional office staff and delivery personnel, taking care of the logistical equipment, and making the actual delivery all entail costs. These other expenses mean that revenue growth is not an option if this service should be implemented.

Whether you’re running a start-up or a large business, planning your shipping strategies is essential, and getting an experienced courier partner can be beneficial without the high cost. A partner company can handle your shipping needs, whether it’s for a single order or in bulk, or for same-day or next-day, and would still let you allot budget for other business considerations.

In addition, a partner would ensure shipping fulfillment on time through route optimization and proper order management without the additional expenses, so you can instead focus the time and resources in growing your business even more. It makes practical sense to spend on a reliable logistics partner to make deliveries because it could help you improve your revenue.

 

As the world continues to see more improvements, you are likely to see a constant change in customer preference and the technologies needed to adapt to these changes.

Whether online shopping is here to stay or not, the consumer’s need for immediate service remains and same-day delivery should become more of a convention rather than a choice to yield company growth effectively.