Whether you build your own same-day delivery service offering or leverage a crowdsourced delivery platform like Roadie, the option provides a return on investment that can’t be beaten.
Market leaders like Amazon and Walmart have set high standards when it comes to delivery speeds, but implementing same-day delivery isn’t easy for companies to do on their own. There are vehicles to lease, drivers to hire, routes to plan and customers to please. If logistics isn’t your core business, making same-day deliveries may strain your existing resources.
And yet, the race to get orders out the door and into customers’ hands is on in full force right now. According to Fortune, Amazon packages began arriving at the doors of Prime customers even faster last year under the company’s new distribution model, which divides the country into eight regions and predominantly ships items from warehouses in those areas.
Walmart uses its nationwide stores as fulfillment centers and delivery hubs for online orders, and Target is working to increase shipping speed with a $100 million investment in its warehouses.
Not to be left out of the game, small and midsize companies also use same-day shipping to hook their customers and keep them coming back for more. Whether you build your own same-day delivery service offering or leverage a crowdsourced delivery platform like Roadie, understanding the potential costs and benefits will be key to building your business case.
To help, Roadie and Supply Chain Dive’s studioID surveyed 150 industry leaders whose organizations offer same-day delivery. Here’s what we learned.
10 proof points for same-day delivery
Same-day delivery is no longer a differentiator. The ecommerce boom has fueled demand for faster delivery options. Customers who used to wait days for their orders now want the immediacy of same-day delivery. This trend applies not just to retail giants, but to businesses of all sizes.
The surveyed companies understand this, and most (96%) have offered same-day delivery for more than a year, while 63% have offered it for more than three years.
Here are 10 key stats that prove same-day delivery really is worth the hype:
- Fast delivery options motivate customers to check out, which helps companies grow. Most respondents (80%) report an increase in revenue as a result of same-day delivery — and it’s not insignificant growth.
- Same-day service boosts revenues. For nearly two-thirds of respondents, revenue rose by 6% or more; approximately 30% saw an increase of more than 10%.
- Offering fast delivery translates into higher revenue per order. Roughly 80% of survey respondents saw higher revenue per order after implementing same-day delivery, with 34% experiencing a surge of between 6% and 10%. This increase could be attributed to the fees charged for same-day delivery, raising product prices to offset delivery costs and/or establishing minimum order quantities for same-day deliveries.
- If delivery takes too long, customers will shop elsewhere. Giving shoppers a way to get their orders faster is a great way to attract new customers. More than three-quarters (77%) of companies confirmed an increase in net-new sales after deploying same-day delivery.
- When customers get their orders quickly and efficiently, they’re more likely to come back for more. Nearly eight in 10 companies say repeat purchases improved thanks to the launch of same-day delivery, with 36% seeing an increase of between 6% and 10%.
- Convert more leads and visits into actual sales. After rolling out same-day delivery, 66% of respondents say their conversion rates grew; 23% are seeing improvements of between 6% and 10%.
- The ROI is undeniable. Most organizations (91%) track the ROI for same-day delivery in order to evaluate profitability, measure success and make better decisions. Of that group, many report revenue increases of more than 20% after implementing same-day delivery.
- Even better, the ROI is consistent over time. Among the firms that track same-day delivery ROI, 68% also realize consistent improvement across those metrics. That growth helps keep the costs of same-day delivery in check over time. For another 25%, ROI improvement remains the same year over year.
- There are ways to offset the costs of same-day delivery. More than half of the survey respondents raised product prices to compensate for the costs of same-day delivery. For 29%, these were simple price adjustments. For 24%, the price increases came after offering a free trial of their same-day delivery service.
- Some companies charge fees to cover their same-day delivery costs. Some of the more popular strategies include an annual fee (17%), a one-time flat fee (14%), a monthly fee (13%) or a per-order fee (13%). Other companies (11%) charge a delivery fee for orders below a certain dollar amount, and 6% of companies include same-day delivery as a loyalty perk.
Unlocking growth with same-day delivery
Not every customer needs their orders the same day, but your company needs to be ready to accommodate those who do. What was once seen as a “nice to have” for both B2B and B2C companies has since become a “must have” for organizations that want to offer a fast and convenient shopping experience.
Offering same-day delivery can add complexity and cost to the last mile. For best results, companies need the ability to balance customer expectations with their own profitability. In many cases, the answer lies in crowdsourcing versus taking the “build your own” approach.
Crowdsourcing delivers two benefits that other last-mile solutions can’t offer: It’s easy to get off the ground quickly with no minimum volume commitment or capital investment required, and it’s flexible and scalable based on demand. The number of drivers and delivery vehicles standing “at the ready” is virtually unlimited when many unexpected orders come in simultaneously.
Finding cost-effective approaches to manage the final step of delivery is key to maintaining affordable same-day services — which, in turn, boost ROI and turn that last stretch of your supply chain into a money-maker.
Read the full report to learn more about the ROI of same-day delivery.
