How Much More Can Retailers Sell by Offering Same-Day Delivery?

Contributed by Sean Spector, CEO, Dropoff.

We all know consumers want fast delivery. But did you know their expectations are growing year after year? 43% of U.S. consumers expect companies to have much faster delivery times now than they offered a year ago. Yet there remains a big discrepancy between how soon consumers want to receive items and how quickly they actually receive them. This extends across many product categories in the retail sector. Dropoff’s 3rd annual study of U.S. consumers regarding their retail shopping and delivery expectations unveils important lessons for retailers on what consumers really want when it comes to receiving their online purchases.

Fast and Furious

Delivery speed has become a crucial aspect of the online shopping experience and a major decision factor for online shoppers. 53% of consumers have abandoned a purchase because of slow delivery times. That’s a lot of missed opportunity! While last mile delivery, or the final transit of a product to its destination, can be the most expensive and poses numerous challenges for retailers, it’s nonetheless a key differentiator and an offering retailers can no longer ignore.

Over the last year, we’ve seen a number of retailers add same-day delivery to their options at checkout. In fact, Boston Retail Partners’ 2017 Digital Commerce Survey showed that same-day delivery was offered by 51% of retailers in 2017. While that number seems significant, more than half of those described their service as “implemented and needs improvement.”

Consumers certainly agree. Dropoff’s survey shows quality issues are on the rise year over year.  Consumers reported receiving more damaged items, damaged packaging, late packages, missing packages, and incorrect items in the last 12 months than the year prior. And delivery mishaps hurt retailers. 57% of consumers say an unprofessional delivery affects whether they would shop from that retailer again.

The Experience Matters

Data shows consumers want a great shopping experience and are not happy about sacrificing quality.

• 88% of consumers say the ability to track shipments in real-time is important to them.
• 79% of consumers would not purchase from a retailer again if the delivery was damaged.
• 75% of consumers agree that the professionalism of the delivery person is important.
• 70% of consumers agree that when the delivery person is dressed in uniform, it increases their trust.
• 69% of consumers would not purchase from a retailer again if their delivery was late.

Some retailers think that once a package leaves its warehouse, what happens next is out of their hands. Consumers don’t agree. Many believe it’s a retailer’s responsibility to choose a delivery partner that represents their brand and customer service values.

Because They’re Worth It

Today, consumers know what they’re looking for, want the option to order it online, and expect packages to arrive quickly and professionally. Offering a same-day delivery option at checkout can become a key differentiator. Retailers who are concerned about the added cost of the service should consider this: 1 in 2 U.S. consumers say same-day delivery would encourage them to shop online more often, and 74% say that after receiving a same-day delivery, they would be more likely to purchase from that retailer again. In addition, 65% of Amazon shoppers say they would order from a different retailer than Amazon if the same delivery options were available. And consumers are willing to pay for it — 47% say they have paid extra for faster delivery. That number is even higher for millennials, with 54% saying they’ve paid extra. There is huge potential to drive increased loyalty and ROI by offering same-day delivery.

The message is clear — giving consumers the option to choose same-day at checkout can significantly reduce shopping cart abandonment and drive future purchases. In an age when Amazon accounts for about half of all e-commerce sales, retailers are searching for ways to compete and differentiate from one another. And the data shows same-day delivery has a real impact on purchase intent and customer loyalty. How much more could you sell if you offered same-day delivery?

Written by Sean Spector and contributed on behalf of Dropoff, which helps solve same-day delivery challenges for businesses. Dropoff provides easy web and mobile ordering, flexible delivery options, transparent pricing, real-time tracking and confirmations, up-to-the-minute ETAs, delivery driver ratings and a feature-rich API for seamless logistics platform integration. Contact Dropoff today to find out how they can streamline your delivery needs. Learn more at Dropoff.com.