The demand for faster shipping has steadily increased since Amazon first began offering free, unlimited two-day shipping in 2005. Since then, Amazon has changed the face of online retail through its use of bold supply chain strategies and the deployment of innovative technologies. With its one-day Prime delivery announcement earlier this year, the e-commerce giant raised the bar yet again for the rest of the industry, and competitors are once again trying to match Amazon’s fulfillment strategy.
Consumer’s Expectations
Since Amazon has accelerated its fulfillment capabilities and made same-day and one-day delivery the norm, consumers expect all online retailers to offer fast and preferably free shipping. In a recent survey, a vast 80% of consumers said that they now want the option of one-day delivery when shopping online and 61% said they would pay more for same-day delivery.**
Amazon’s Key to Success
Amazon is the most valuable public company in the world after passing Microsoft and has remained top in customer satisfaction polls for the past six years. Amazon’s success is due to one key reason: quick and efficient supply chain management. The combination of advanced information technology, a huge network of warehouses, multi-tier inventory management, and excellent transportation makes Amazon’s supply chain the most efficient in the world – efficiencies that have made same-day delivery possible.
One-Day Delivery Matters
Times are rapidly changing, and Amazon has proven to brands that one-day delivery matters. It was the fastest-growing expedited delivery option in the past year with nearly twice as many consumers saying they took advantage of it in the last twelve months.* With 49% of shoppers saying that same-day delivery makes them more likely to shop online** and 25% saying they would abandon a cart if same-day shipping weren’t available**. As a result, more than half of retailers are now offering to expedite delivery and 65% plan to offer it within two years.**
Even 2 Days Delivery Can be Challenging
Offering two-day delivery presents retailers with several challenges surrounding logistics, high costs, and staffing. However, retailers now recognize the need to adjust their e-commerce strategies to reflect the change in consumer expectations. The statistics clearly show that not offering fast delivery services will result in the loss of customers while providing same-day services will attract more. The challenges retailers face when figuring out the optimal expedited delivery method have been proven to more than worth the investment.
Two-day delivery offers a multitude of benefits including;
- Creating competitive advantage: Product quality and price is often similar between competing businesses; providing a one-day delivery service will most likely be a source of competitive advantage.
- Improving inventory management: two-day delivery also helps to simplify the inventory management process. With a two-day delivery service, production and sales take place simultaneously, which reduces the scale at which stocks are held.
- Establishment of trust: Same day delivery service breeds reliability and professionalism. Providing same day courier service ensures that your clients and customers are satisfied and more likely to reorder.
If you don’t have the means or capacity to offer two-day shipping, it makes sense to engage the services of a third-party shipping specialist to take advantage of consumer trends. With 53% of abandoned shopping carts being due to slow delivery times*it’s clear online shoppers don’t have time to wait around.
This guest blog post was provided by Cloudya Esther, the Director of Business Development at Ameriworld Fulfillment, a Miami-based 3PL provider. Cloudya can be reached by phone at 305-777-0548 ext. 2033 or by email at [email protected]
*note: Statistics sourced from Customer-Centric Digital Supply Chain Fit for the Future.
**note: Statistics sourced from Invesp Conversion Optimization Company
