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Home » Survey: Brands Balancing Cost of Fast Delivery With High Demand

Survey: Brands Balancing Cost of Fast Delivery With High Demand

A DELIVERY WORKER WITH A HAND TRUCK LOADED WITH BOXES OUTSIDE A VAN PARKED IN FRONT OF A HOME CONSULTS A DEVICE

Photo: iStock.com/monkeybusinessimages

May 7, 2024
SupplyChainBrain

A new survey found that faster delivery speeds factor highly into the online purchasing decisions of consumers.

Last-mile delivery provider Jitsu surveyed 692 U.S. consumers over the age of 18, 45% of whom said that they would be unlikely to purchase an item if the delivery time was too slow. Options for two-day or faster delivery also led a 10.5% increase in purchase conversion rates, as well as a nearly 9% bump in repeat customers. 

"The delivery experience is fundamental to the overall customer experience and significantly impacts everything from brand loyalty and customer lifetime value to a brand’s bottom line," Jitsu CEO Raj Ramanan said. "That’s why last-mile delivery is so crucial to a brand’s success." 

Jitsu also spoke to 250 senior personnel for U.S. brands and retailers, detailing their struggles to balance costs with delivery speed. Of those, 60% said that just under a third of their supply chain costs come from the last-mile portion of their delivery cycle. And while 18% of their deliveries were same-day, just 34% offered that as an option to consumers. 

Jitsu pointed to several factors that link quicker delivery times to higher fulfillment costs, including the need for faster transportation, investments in infrastructure and technology, and more fees from shipping carriers. Despite the increase costs, nearly 80% of brands said they saw higher conversion rates and more repeat purchases after offering two-day or faster delivery options. 

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