11 Aug, 2017 By Wayne Wang
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It’s time for all online retailers to take their delivery services to the next level – we’re talking about same-day deliveries.

That’s because demand for this level of service is growing fast among consumers and retailers that don’t step up to the plate will soon slip away into an abyss of irrelevance. It might sound extreme, but take note, because a series of evolutionary developments have taken place since online retail first took off which have led to where we are today.

Closing The Gap Between Online And Bricks-and-Mortar Retail

Let’s be honest. Traditionally, online retail was never really meant to compete with the immediacy of bricks-and-mortar stores. That’s because they imposed themselves on existing postal and courier services where slow and steady deliveries had long been accepted. At best, online’s advantage over bricks-and-mortar simply centred around cheaper prices from lower overheads and convenience – and the types of goods available reflected this.

Online retail was once incredibly popular within niche areas such fashion and electronics, but now, there’s nothing consumers can’t buy from the comfort their homes. From meal kits to pre-made lunches – the online retail space has exploded with choice.

And here’s the crucial difference; purchases of clothes or electronics are rarely time sensitive, with consumers happy to wait 2 to 3 days for delivery – unlike fresh food and last-minute lunch orders, which must arrive same-day.

The gap between convenience (online retail) and immediacy (bricks-and-mortar) has been steadily closing in conjunction with a growing diversity of goods available online. That means there’s real opportunity for online retailers to go head-to-head with bricks-and-mortar retailers – provided they can get their goods out the same-day!

Same-Day Deliveries Have Become A Unique Selling Proposition

Today – consumers attach so much value to same-day deliveries they’re willing to pay for it (provided it’s reasonably priced). A survey conducted in Germany, Sweden, France, and the UK found respondents were willing to pay around $10 for same-day delivery on a $90 purchase.

Deliveries are no longer a “necessary evil” to shopping online – they’ve become a unique selling proposition for all online retailers. Those who offer same-day deliveries will stand out against the competition while new entrants will spot opportunities to offer products traditionally reserved for high street retailers.

Indeed – same-day deliveries are becoming a real catalyst for growth in the online retail sector.  

Nick Robertson, CEO of ASOS has said: “A good delivery experience is a key part of keeping our customers happy and encouraging repeat purchases as well as helping to build brand warmth.”

Meanwhile, Amazon has reported that same-day delivery options increases conversion at the checkout by as much as 20-30 per cent.

Opening The Door For New (Faster) Delivery Model

But, there’s no denying we’re at a critical juncture here.

Why? Because while online shopping habits have changed, the delivery service sector hasn’t been evolving at the same pace – not entirely. Modern consumers demand immediacy, but they don’t want to pay the premium price tags charged by traditional courier services who simply can’t make same-day deliveries cost-effective without the “critical mass”.   

The door has opened for brand-new delivery models to enter the market as part of this ongoing evolutionary process. Now, new delivery services like Go People are breaking down the barriers by removing the need for a “critical mass” to make same-day deliveries cost-effective.

Go People uses the sharing economy model to bring together a huge community of delivery runners who can view and accept individual delivery jobs from their smart devices. That means they can pick up orders (no matter how big or small) and take them straight to the recipient, unlike traditional couriers who process packages and redistribute them from large-scale fulfilment centres.  

Not only does this provide customers with easy, affordable same-day deliveries, but it also gives customers the freedom to book time-slot deliveries at a time that’s convenient for them. With delivery models like Go People, every online retailer will be able to offer the benefits of both convenience and immediacy.

To find out more about Go People’s services, click here.