Retailers Offer The Right Formula For Same-Day Delivery

Many retailers are in the race for same-day delivery. It is a service that has emerged as the key to unlock success in the online retail industry and growth for brick-and-mortar retailers as well. EBay, Amazon, Google, Target, Wal-Mart, and even the USPS, have all implemented some form of same-day delivery. These well-known retailers and more, are all seeking the right formula for same-day delivery to work.

The New York Times recently reported that retailers are warring regarding same-day delivery and who will make it to the last mile. The article discusses several e-retailers and the formula they are using to win the same-day delivery race. EBay uses its' bike riders, or "valets", to make deliveries within "about an hour", for a $5 fee with a minimum $25 purchase. EBay is planning to waive its' $5 delivery fee between Dec. 21 through Dec. 24 and will extend its' service hours between Dec. 16 through Dec. 23. The retailer is also planning to expand into 25 more US cities.

“One thing Amazon has done very successfully,” Ms. Mulpuru said, “is they’ve owned the entire value chain. They’ve owned the last mile, the moment that matters. That moment is when the package arrives.” She concluded: “Once you can own the moment that matters, you build a loyal customer base.” This was said about Amazon, which has its' on take on how to make same-day delivery successful. Amazon has 40 order fulfillment centers strategically placed all over the US, which cover a total of 80 million square feet of an enormous amount of products. At first Amazon spoke lightly about same-day delivery. However, now the retail giant is offering the service in 11 major US cities. It is highly probable Amazon will continue to expand.

There are other retailers looking for the right formula as well. New start-up Postmates, currently offers same-day delivery in New York, San Francisco and Seattle. Its' formula is utilizing 100 to 200 couriers per week to deliver for them. What is different about Postmates is the retailer has created "surge pricing". When demand for deliveries is higher than the supply of couriers to the point its' couriers are limited, Postmates will charge a higher price to service to its' customers.

Deliv's formula is a crowdsourcing approach. This involves using everyday people, from students to real estate agents, with time on their hands to engage in fast same-day delivery. Now, Kozmo, one of the first online retailers that tried to crack the code on same-day deliver years ago, but failed, is hinting at making another run at it. On the retailers' website, it reads, “Remember us? We’re relaunching soon with the vision to fulfill your online order incredibly fast, and on-demand.” It appears with so many retailers seeking to provide the service, Kozmo feels the time is right to try again, yet will their formula work?

There are a number of directions a retailer can approach same-day delivery, yet ultimately the actual delivery will have to be done on time. A viable option is for a retailer to partner with a Same-Day Courier like A-1 Express to not only perform on-time deliveries, but also help them develop the right formula for same-day delivery to work. This San Francisco Courier has the expertise to quickly implement a courier logistics solution and has the national footprint to help even the largest of retailers thrive using same-day delivery.

Reference: 11.23.13, New York Times, Hilary Stout, In War for Same-Day Delivery, Racing Madly to Go Last Mile