Same Day Delivery vs Economic Delivery: What is More Important to Consumers?
Same Day Delivery vs Economic Delivery: What is More Important to Consumers?
The potential of same-day delivery to revolutionise the way we shop cannot be understated as it combines the convenience of online retail with the immediacy of traditional stores. This has led to an increasing demand for same-day delivery services, highlighting the value consumers attach to the service. According to research, once consumers have experienced same-day delivery, their expectations are forever changed as they refuse to settle for anything less. Online shopping offers a range of benefits, including convenience, time-saving, and a wider range of products to choose from. It allows consumers to shop from the comfort of their own homes, avoiding the need to physically visit multiple stores. Additionally, online shopping often offers better deals and discounts compared to traditional stores.
The Future Starts Today!
Providing free deliveries has become an excellent opportunity for retailers to boost their sales and enhance their services. However, achieving this requires a considerable amount of logistical expertise, technology, and the utilisation of data. An example of this is Amazon Prime, which offers consumers an opportunity to upgrade their services by paying a subscription fee. Amazon has increased its online shopping engagement by incorporating features such as "recommended for you" or "trending near you," which aim to enhance the customers' cart value. Other competitors, such as Swiggy Instamart, Blinkit, and Zepto, are also gaining market share by offering same-day delivery for a wide range of items, such as groceries, pet supplies, and stationery. Research conducted by Amazon has revealed that the availability of same-day delivery as an option can boost purchase conversion rates during the checkout process. However, it is worth noting that not every customer ultimately opts for same-day delivery.
In order to offer same-day delivery, retailers need to possess technology that enables real-time tracking, route optimization, and other essential features. However, it involves significant financial investments, prompting many businesses to collaborate with third-party logistics providers. These partners offer numerous benefits such as time and cost savings, as well as the flexibility to work according to business needs. Additionally, if the logistics partner operates in regions where the business has no presence, one can use their network to expand into new markets, which can result in increased sales.
What Does Research Indicate?
In a research report by Invesp, it was found that a significant proportion of online consumers aged 18-34 have a strong expectation of same-day delivery, with 56% expressing this sentiment. Moreover, an even greater majority of 61% of consumers are willing to pay a premium for this expedited service. Over 70% of consumers prioritise convenience (77%) and free shipping (72%) as their top reasons for engaging in online shopping (Deloitte 2018 survey). The demographic groups showing a greater inclination towards paying more for online shopping include younger generations, individuals with higher incomes, and those who work long hours.
The consumer's familiarity with same-day delivery varies depending on various factors such as age, income, and country of residence. For example, a consumer from the bourgeois class may opt for same-day delivery at a higher cost. However, individuals from the so-called lower economic strata may not be able to afford additional fees for same-day delivery, and some may not even have the necessary technology to make online purchases. Small business owners and startups may also face challenges in managing their business and providing fast deliveries, as they may not have the financial resources to engage third-party platforms. This is where Roadcast comes in, offering Synco freemium plans for up to 10 users to assist them in managing their operations and providing efficient deliveries.
So Which Delivery Option is the Best?
The speed of delivery may not be a top priority for every customer, as some prioritise cost-effectiveness over quickness. Thus, despite the surge in demand for same-day delivery, there still exists a significant market for economy delivery. Customer preferences may vary depending on the business niche. For instance, if the company deals in high-end luxury products, the clientele may prefer same-day delivery over economy delivery. Therefore, it is prudent to offer both delivery options as customer demand for both persists. Conducting market research and analysing customer base can benefit.