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Same-Day Delivery In eCommerce: Niche to Win
Same-Day Delivery In eCommerce: Niche to Win

November 16, 2021

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A ‘New Normal’ has emerged for the delivery speeds that customers expect when they order online. For good reason, same-day delivery is referred to as the ‘holy grail’ of online shopping. Consumers want their orders dispatched and delivered as fast as possible; yet, as the number of orders increases, the pressure on package delivery and shipping firms has increased. In the face of greater demand and shorter delivery windows, consumers' expectations are being satisfied at an acceptable pace. Retailers can take advantage of a strategic asset: their dense store networks, which put them in close proximity to their customers and provide them (possibly) quick access. However, omnichannel retailers must consider shifting gears in four areas to properly profit from such networks: local fulfilment networks, rapid and integrated IT systems, new store design and processes, and rethought business economics.


Prepping for Same Day Delivery


Same-day delivery has the potential to revolutionize the way we purchase forever. It combines the convenience of online shopping with the immediacy of physical stores. Given the compelling value proposition of same-day delivery for consumers, demand is projected to skyrocket. Reduced delivery time assists online retailers; the almost immediate product access enhances their position compared to stationary retailers and makes online shopping's greater variety, convenience, and typically lower pricing even more appealing.


Benefits of Same Day Delivery


Customer Satisfaction - Quality and promptness are equally important to customers. The convenience of same-day delivery leads to happier customers and builds loyalty.


Shipping Savings - Due to the usage of local messaging providers, same-day delivery is possible. These services are less expensive than those provided by large logistics organizations, reducing the sales cycle cost for businesses. This money saved by same-day delivery can be used for marketing or given back to clients in the form of bonuses or premium services, in turn increasing customer loyalty.


Earning Customers’ Trust - Same-day delivery boosts consumer confidence. Customers believe that brands or businesses care about their experience when they offer same-day delivery. This builds customers’ trust in the business and they are likely to come back for more.


Competitive Advantage - Same-day delivery is available in the best marketplaces, but not all of them. This is an excellent competitive advantage if your competitors do not provide this service. It's likely that your commercial competitors will follow your lead, but you'll have a significant edge.


Challenges of Same Day Delivery


Order Forecasting - To offer same-day delivery to client requires having the right number of products in the right place at right time and it’s not easy. Lack of order forecasting is probably the biggest challenge and large online marketplaces use machine learning to predict demand.


Managing Logistics – Businesses need to ensure they have adequate warehouses spread across the delivery areas to effectively offer same-day delivery service. More importantly, ensuring they have the right product stocked at the right fulfillment centers is key, even though this may mean an initial increase in investment.

Same-day delivery might eliminate one of the most major differences between buying online and offline from a brick and mortar store: the customer's ability to have and utilize the things they bought right away or virtually right away.
Niche To Win - If done correctly, the same-day delivery market presents an opportunity for every sort of business. Businesses should start small and early so that they can test and discover what works best for them. They must also make sure they're using the correct technologies to achieve same-day delivery.

This article has been written by Mukesh Kumar Gupta, Senior Director, Product Development, Pitney Bowes India


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Pitney Bowes (NYSE:PBI) is a global technology company providing commerce solutions that power billions of transactions. Clients around the world, including 90 percent of the Fortune 500, rely on the accuracy and precision delivered by Pitney Bowes solutions, analytics, and APIs in the areas of ecommerce fulfillment, shipping and returns; cross-border ecommerce; office mailing and shipping; presort services; and financing. For 100 years Pitney Bowes has been innovating and delivering technologies that remove the complexity of getting commerce transactions precisely right. For additional information visit Pitney Bowes at www.pitneybowes.com.

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