Because the e-commerce market keeps increasing, purchaser expectations of e-commerce businesses keep getting higher. As a result, it has caused a direct impact on conventional brick-and-mortar purchases over the past few years. Additionally, the COVID-19 pandemic has the most significant hand in changing expectations. Due to e-commerce giants, consumers are increasing their demand for same-day delivery from their retailers. 

E-commerce earnings went up 44% in 2020. The increase is directly related to increased demand and changes caused by the pandemic. When we compare it to the 15.1% increase in 2019, we can immediately see the impact of the pandemic. 

This growth has been fueled in part by the growth rate of conventional brick-and-mortar retail stores. According to Forbes, e-commerce accounted for 15% of retail income in 2019 and 25% in 2020. 

Now that this demand is known amongst most retailers, shop owners need to decide on their delivery options. Since product demand and shorter delivery windows are more often requested, businesses should be learning towards offering same-day delivery.

Why Offer Same-Day Delivery

53% of Americans are willing to pay more for same-day delivery. Additionally, 46% of shoppers will abandon their shopping carts if transport times are too long or limiting. Having low cart abandonment should be your top priority. If you do have higher abandonment rates, you should be looking at why abandonment is happening.

Reducing cart abandonment costs is a proper way of improving conversions and preserving customers. Every decrease in cart abandonment and increase in retention price leads to increased profitability for an e-commerce business.

With these statements, the case for offering same-day delivery is obvious. Unsurprisingly, a significant amount of shops have already caught on. As many as 51% of retailers provide same-day delivery already, and 65% plan to obtain this within the following years.

In short, it has become more common to have customers who expect expedited delivery of their products. More than half of users who pick same-day delivery at check out do it because they want their order now. Consumers also value the fact that they can do the shopping process without having to visit a storefront.

How To Quickly Pivot to Same-Day Delivery

There can be many barriers to why e-commerce businesses struggle with same-day delivery. Many small businesses cannot afford the high price of same-day delivery or lack the coordination to get the product out the door that quickly. For same-day delivery to be beneficial for the company, the business must launch at scale. You need to pick a same-day delivery provider whose minimum daily volume matches your volume. 

To provide high-quality same-day delivery, here are four requirements that an enterprise should follow. 

Have Multiple Warehouses

If your business is large enough to need a warehouse or multiple, they must be spaced out. Same-day delivery only works when warehouses, sorting centers and fulfilment facilities are nearby city hubs. Having the products be as close to the consumers as possible allows for quick delivery times.

Having your warehouses closer to consumers can also save you money. It will reduce the time it takes for delivery drivers to pick up products and reduce the time to get to each end customer. This will lead to reduced gas costs, wages and other unexpected expenses. 

You Must Sell Same-Day Delivery Products Frequently 

Owning more than one warehouse does not solidify a positive delivery experience for every company. For small businesses, it typically makes more sales to ensure same-day delivery makes sense for your business. Small companies must push their customers to purchase items frequently and repetitively. They may also have to decide to cut certain items from being included in their same-day delivery solution. Making cuts will ensure same-day delivery stays as a profitable business decision. 

Medium and large-size businesses may not have to push as hard. With growth comes brand recognition, and with brand recognition comes increased sales. This profile means that these businesses may not need to worry about having all items available for same-day delivery. They can afford to lose money on some products. 

Precise Market Demand Analysis by Geographic Region

To provide same-day delivery services that get used, you need to know your working area. Specific cultural, geographic, season changes and other factors contribute to the overall market. These factors directly impact estimated delivery times and can lead to delays in same-day delivery. 

Being aware of the geographic conditions goes beyond having multiple warehouses. It requires contingency planning and resources in case of different scenarios. For example, If a blizzard hits – do you have enough contingency plans to ensure your products still get delivered by the end of the day? Planning for the worst will ensure your business can withstand the unexpected.

A Network of Couriers Ensures Quick Delivery

The method to success with same-day delivery is understanding the last-mile delivery industry. Last-mile delivery is the final transportation of a product to the consumer. Traditional delivery services (postal carriers) and independent courier companies generally handle the delivery process.

Outsourcing your deliveries to an established last-mile delivery company will ensure you have access to a fleet of professional drivers. These drivers are eager and are ready to get your products where they need to go. To organize this system properly, it is essential that you have a dedicated team focused on ensuring that offering same-day delivery is a benefit rather than a burden. 

In short, pivoting to same-day delivery is inevitable. Businesses need to adapt quickly and effectively to ensure they stay competitive in the market.