Executive Briefings

40 Percent of Shoppers Want Same-Day Delivery, Study Says

The availability of same-day delivery is still catching up with demand as retailers seek new ways to combat Amazon, according to a new study from L2 on the omnichannel fulfillment landscape and customer expectations. This could be an opportunity area for retailers as delivery partners can make same-day a reality across a wider swath of the country than Amazon, which covers 27 U.S. markets at present.

40 Percent of Shoppers Want Same-Day Delivery, Study Says

The ability to offer two-day shipping has now become table stakes, with 89 percent of consumers saying it is their definition of fast delivery.

Less than 20 percent of the 97 retailers across eight sectors tracked by L2 offer same-day delivery even though 40 percent of shoppers said they would take advantage of the service if they couldn’t get to a store. Additionally, 25 percent of shoppers said they would abandon their cart if same-day delivery was unavailable.

“Well capitalized startups such as Uber, Postmates and Deliv are filling the void, allowing retailers to offer (same-day delivery) without investing in the infrastructure,” L2 said in its report. “Yet less than a fifth of retailers (tracked by L2) utilized third-party delivery partners. With no dominant player in the same-day delivery space, there is still healthy competition that allows both retailers and consumers to find lower costs than traditional shipping partners.”

While consumers expect two-day shipping for free — conditioned by Amazon Prime’s promise — they are willing to pay more for a same-day upgrade, up to $5 more, L2 found. But at that rate retailers would be eating roughly twice the cost. For the 18.6 percent of retailers offering same-day delivery, the average cost to them is $10 more.

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The ability to offer two-day shipping has now become table stakes, with 89 percent of consumers saying it is their definition of fast delivery.

Less than 20 percent of the 97 retailers across eight sectors tracked by L2 offer same-day delivery even though 40 percent of shoppers said they would take advantage of the service if they couldn’t get to a store. Additionally, 25 percent of shoppers said they would abandon their cart if same-day delivery was unavailable.

“Well capitalized startups such as Uber, Postmates and Deliv are filling the void, allowing retailers to offer (same-day delivery) without investing in the infrastructure,” L2 said in its report. “Yet less than a fifth of retailers (tracked by L2) utilized third-party delivery partners. With no dominant player in the same-day delivery space, there is still healthy competition that allows both retailers and consumers to find lower costs than traditional shipping partners.”

While consumers expect two-day shipping for free — conditioned by Amazon Prime’s promise — they are willing to pay more for a same-day upgrade, up to $5 more, L2 found. But at that rate retailers would be eating roughly twice the cost. For the 18.6 percent of retailers offering same-day delivery, the average cost to them is $10 more.

Read Full Article

40 Percent of Shoppers Want Same-Day Delivery, Study Says