Boston Consulting Group Surveys Same-Day Delivery, Will It Make It?

Same-day delivery has been in hot pursuit for a number of large corporations and businesses over recent years. With an average annual growth of online sales of 16%, it is no wonder why companies are seeking to create a competitive advantage and provide a faster delivery service to meet online demand. However, some are asking will same-day delivery last or will it be merely a trend?

Yahoo News reported The Boston Consulting Group conducted a survey of 1,500 consumers regarding shopping online. One question asked is what would attract them to shop more online. Only 9% of the consumers stated same-day delivery would inspire them. More than 75% of those surveyed stated free delivery would persuade them to shop online. Lastly, 50% of them stated lower prices would be the trigger needed for them to conduct online purchasing.

The survey also provided insight into what consumers would be willing to pay for same-day service. Consumers said they would pay an average of $7.50 to receive a $50 purchase delivered via same-day delivery. The important comparison with this fact is that this amount is lower than what retailers, e-retailers and online companies are currently charging for this level of service. Therefore, the cost issue must be resolved if same-day delivery will last.

The survey shows concerns on whether it will be profitable. In the report, the Urban Americans between the ages of 18-34, with a household income of $150,000, only account for 2% of those that will buy into same-day delivery. This means demand is a great concern. "The demand for this service and the willingness to pay do not match the cost of providing it," said Boston Consulting Group partner Rob Souza.

Many large companies have already been providing and competing relative to same-day delivery. With companies such as Wal-Mart, eBay, Macy's, Target, and more in the race for making deliveries the same day, it causes many to suspect same-day delivery must be profitable. eBay created a same-day service called eBay Now. The online giant began testing same-day delivery in San Francisco and they now provide the service in several areas. They now have same-day delivery in Brooklyn and Manhattan, New York. Delivery is $5 per order, with a minimum order of $25. Also, same-day delivery may result in the shopping advantages consumers want.

Experts even think Amazon could be after same-day delivery with the continual building of distribution centers throughout the US. Amazon's recent announcement is it will be building three new distribution centers in Texas. There will be two Dallas-Fort Worth distribution centers, which will be a 1 million-square foot site in Coppell, TX and the distribution center in Haslet, TX will be 1.1 million square foot. Another will be in San Antonio, located in Schertz, TX, which will specialize in handling large items. Amazon has opened 20 distribution centers and 79 fulfillment centers worldwide.

Many investments are being made to make same-day delivery successful. Same-day courier services like A-1 Express can assist any business develop a successful same-day delivery solution. This Cleveland courier is able to pick up anything from small packages to palletized freight fast! A-1 Express is an experienced, professional courier servicing over 1,500 clients, including Fortune 500 companies. A-1 Express is a viable option for large retail corporations to partner with and help same-day delivery last.

References: 2.5.13, YahooNews, Alistair Barr, E-tailers embrace same-day delivery, but U.S. shoppers shrug: survey

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