With peak season upon us and same day deliveries from U.S. retailers achieving record volumes let's look ahead to the growth of same day delivery in 2019 and the opportunities for retailers.
Consumer expectations continue to rise in regard to getting what they want, when they want. The Amazon-effect has been analyzed at great length and same day delivery is now table stakes for retailers in the United States. That's not to say every customer wants same day delivery of every order but they do want the option to choose it. Categories with the highest demand for same day are Apparel, Health & Beauty, and Personal Electronics.
The perception is that Amazon is the dominant retailer and everyone else is playing catch up which is accurate to an extent. The reality is that consumers, as mentioned before, want what they want. Their loyalty is to the brands they believe in and who they feel are responsive. For retailers the opportunity is to engage customers with your great products then deliver in a way that reflects your customer's lifestyle.
Retailers operating multiple brands it's essential to look at the profile of your customer along with existing order data to determine which same day solution is best from them. Some brands will find their customers are fine with a same day solution that arrives by the end of the day (typically 9pm local time) while others want 2-hour delivery or the ability to select a delivery window.
There's cost to every solution offered and as the entire retail industry works to be more strategic in all aspects of their business (store count, inventory, digital marketing, etc.) same day delivery is no different. Copying what other retailers are doing isn't necessarily the best solution for your customers.
Finally, on the topic of cost it's critical to view the addition or expansion of same day delivery as an investment and not a cost. In the race to build loyalty the brands who embrace their customer's preferences and serve them well will win. Have a great 2019!