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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