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Forget 2 Day Shipping, We Want Same Day Shipping! How and Why Same-Day Logistics Work

September 27, 2019 same day logistics

Amazon is famous for providing same day or next day delivery for their prime customers. But they aren’t the only ones to offer this service. Fifteen other national retailers also offer this lightning-fast delivery service. 

With ever-increasing e-commerce competition and customer expectations, should businesses offer same-day delivery? If a company thinks they should, they need to develop relationships with local couriers. 

What is a courier? Keep reading to find out what they are and how they can help companies offer same-day delivery. 

Why Offer Same-Day Shipping 

Online consumers have higher and higher expectations when it comes to delivery time. These days, 56% of consumers between the ages of 18 and 34 expect to have the option of same-day delivery. 

If that wasn’t bad enough, 25% of shoppers say they will abandon their online cart if same-day delivery isn’t an available option. This percentage does vary based on the particular product though. 

Gifts and flowers have the highest abandon rate at 40%. The next highest abandon rates are for computers, software, automotive, office supplies, and toys or video games. If a business sells products in these categories, it is even more critical that they offer same-day shipping.

There are some categories where less than 20% of consumers will abandon their cart. It may be less critical for businesses that sell products in sporting goods, health and beauty, home and garden, or pet supplies. 

How Same Day Delivery Works 

For most retailers, same-day delivery isn’t exactly a correct statement. It might be more accurate to say 24-hour delivery.

For instance, if someone chooses same-day delivery from Amazon, they need to order before noon for their item to be delivered by 9 pm. If they order after noon, then their order arrives the following day. 

They also need to live within 14 miles of specific metropolitan areas. Customers need to enter their zip code to find out if they are eligible for this service. 

How to Make Same-Day Delivery Work

To be successful at this service, a business needs to have their product near where their customers are ordering from. This eliminates a bulk of the shipping time. 

Start by looking at where the majority of orders come from. Now source a warehouse fulfillment center near here. Then when a customer orders, it is fulfilled from the local distribution center. 

Local Couriers 

Companies can make shipments even faster by working with a local courier. These couriers have more comprehensive coverage of the local geographic area. They are also more capable of responding quickly to on-demand shipments needs. 

Network of Stores 

If a business already has a network of stores, then they can take a lesson from Walmart. The company is entering the same-day shipping market by using its network of stores as warehouses. 

Customers that live within a certain distance of a particular store can get same-day shipping on specific items. 

What Is a Courier?

A local courier is a delivery service that focuses on a specific geographic area. The best thing to do is to develop a relationship with that courier. They will then be an on-demand service that will move packages from the store to the customer’s home. 

Warehouse Services

Some of these services will even offer to warehouse products. That way, they can make the process even smoother. When the business receives an order, they simply let the courier service know. 

The courier will then pull and pack the shipment and send it off. With everything in-house, shipments can move faster through the distribution process. 

Truck Coverage

Local couriers also have better coverage when it comes to trucks. They can deliver faster. They can also schedule time-definite delivery appointments. 

Total Availability 

With the big national parcel shipping services, they are only open during certain hours. This doesn’t work well when a business offers same-day shipping. 

But with a local courier, they have 24/7 availability. This makes them ideal for time-definite door-to-door deliveries. Now customers will get their order as soon as possible without any wasted time. 

Be Careful Not to go Broke 

Way back in the late 90s there was a company called Kozmo.com that offered one-day shipping. They offered one-day shipping on all orders. They didn’t have a minimum order value and didn’t charge for the service. 

This was a huge mistake. The company ended up having significant losses. They eventually tried to charge $2 for each delivery and implement a $5 minimum on orders. 

The problem is this was too little too late. Their customers revolted, and those that stayed didn’t cover the company’s losses. 

Instead of jumping off the deep end, take a lesson from Amazon. They started small and tested out one-day shipping in key markets. They also introduced the service with order minimums and a delivery fee. 

This lets them try out the shipping service with limited risk. It also set customer’s expectations. 

Pricing Same-Day Delivery Service 

Don’t be afraid to charge for this elite service. Surveys prove that the majority (88%) of customers are willing to pay for same-day delivery. 

For many consumers, the delivery date is more important than the cost of shipping. So if they perceive the price as reasonable, they are willing to pay extra. 

Start Offering Same-Day Delivery 

Same-day delivery combines the convenience of online shopping with the instant gratification of in-store shopping. This moves you one step closer to meeting the expectations and demand of today’s e-commerce customers. 

Now that you know the answer to the question, what is a courier? You can choose a market and test out same-day shipping.

Request a quote today and let us help you start offering same-day delivery options to your customers.