Why Same-Day Delivery is the Future of E-commerce

Changing expectations of consumers while shopping online

As the name suggests, same-day delivery is the delivery of products ordered online within 24 hours of order placement. Unlike traditional courier services that take a minimum of two to three days to deliver products, same-day delivery means consumers no longer have to wait anxiously for the goods they’ve purchased.

"The global market for same-day delivery was an estimated $5.78 billion in 2019 and will hit $20.36 billion by 2027."

With improving technology and innovation, it is getting easier and easier for consumers to benefit from same-day delivery. Many e-commerce businesses are now partnering with last-mile solutions providers such as Stuart to offer their customers the possibility of on-demand services with just a few clicks.

Because same-day delivery combines the convenience of online retail with the speediness of brick-and-mortar stores, consumers are adopting this new trend with open arms. Demand is predicted to increase, for retail as well as time-sensitive products sold by grocery stores or supermarkets. According to one report, the global market for same-day delivery was an estimated $5.78 billion in 2019 and will hit $20.36 billion by 2027.

According to a June 2021 PwC survey, fast delivery was the most important online shopping attribute among more than 8,500 global consumers. Ranked as a top concern, quality same-day delivery services will only become more important in the days to come.

"If businesses intend to retain their customers, they need to offer speedy deliveries to their customers."

In fact, same-day delivery is emerging as a new standard highly desired by consumers. A 2021 Deloitte study found that 47% of consumers were listing same-day delivery as a preferred delivery service for the holiday season. In another representative survey conducted by McKinsey in Germany, France, Sweden, and the UK, 50% of respondents were willing to pay approximately 10% of the purchase price for having their products delivered on the same day.

Although price is usually the first purchasing criteria for consumers, speed is increasingly becoming a primary influencer as well. To the point where consumers are willing to pay more to obtain their products faster. In other words, if businesses intend to retain their customers, they need to offer speedy deliveries to their customers.

E-commerce growth: why adopt same-day delivery

The e-commerce market is constantly growing, especially with an increasing number of individuals now using smartphones and having access to the internet. With businesses connecting to their shoppers through social media and advertising, more and more marketing channels have promoted online shopping. Already representing 18% of all retail sales globally in 2020, e-retail shows a projected increase to a whopping 21.8% by 2024.

Furthermore, e-commerce is a service that is available 24x7 to consumers. They can shop whenever they want, whether on holidays or past midnight, from the comfort of their home. E-commerce also makes it possible to offer shoppers more choices, without the limitations of physical stores that can only keep particular stock.

The hassle of traffic, crowds and excess costs such as money for gas can easily be avoided, further leading to the growth of e-commerce. The instant gratification that consumers can get with a click of a button has surely contributed to increased e-commerce transactions, too.

So it’s no surprise that with the growth of e-commerce, it is equally important for businesses in the sector to adapt their deliveries in order to stay competitive.

"Since many e-commerce businesses still have not adopted same-day delivery, this service provides the opportunity for your brand to stand out."

So what are the benefits that a business can expect to see?

• Customer satisfaction. Since every consumer values the importance of time, delivery within a day brings added value. Most consumers expect good quality and service, but getting their parcels on the very day they order helps exceed their expectations.
• Lower cart abandonment. A recent Metapack report found that 50% of shoppers claimed to have abandoned online shopping carts because the delivery choices on offer were unsatisfactory. Reducing the waiting time further hastens the consumer’s purchasing decisions and reduces the chances of them abandoning their carts.
• Increase brand value. Online shopping giants such as Amazon have improved the trust their customers place in their brands by offering same-day delivery. Thanks to advanced logistics and innovative technology, Amazon Prime changed how consumers feel about delivery speed and set new standards. Shorter delivery times play a key role in making customers feel valued and can impact their confidence in the business.
• Stay competitive. With lots of new companies entering the online space, it is important to maintain a competitive advantage. Since many e-commerce businesses still have not adopted same-day delivery, this service provides the opportunity for your brand to stand out.

What premium same-day delivery offers e-commerce players

The important question to ask here is: although businesses are trying their best to offer good delivery times, are they able to keep up with the expectations of consumers?

To understand this better, it’s important to consider what it is that urban consumers really want, where e-commerce businesses are falling short and what can be done to overcome these challenges.

We have already seen that consumers increasingly expect same-day delivery options. However, speed is not the only major factor that matters to consumers when shopping online. Real-time tracking and convenience also play a role in consumer expectations. People prefer knowing exactly where their parcel is and when they can expect to receive it. According to Metapack’s 2022 Post Purchase Report, 94.5% of shoppers say the ability to track their order is important, of which 54.7% say it’s very important.

"No matter what your needs are, Stuart’s retail and e-commerce solutions can help you develop a same-day delivery offer that works for you."

Great customer service is equally important to customers. According to recent research, up to 58% of shoppers would be willing to pay more if they knew they would receive great customer service. That number rises up to 62% when taking only Millennials customers into account.

Of course, same-day delivery in itself is a premium service. But coupled with advanced tracking technology and great customer service, e-commerce retailers can create a unique delivery experience that will keep customers coming back.

No matter what your needs are, Stuart’s retail and e-commerce solutions can help you develop a same-day delivery offer that works for you. Our innovative Ship from Store and Ship from Hub services support instant, scheduled same-day and next-day delivery—all integrated directly into your e-shop via our API.

Want to learn more about how to get started? Get in touch with our Sales team today!