Millennials Driving More Retailers To Offer Same-Day Delivery

The growth of online retail is coming from all directions, including from millennials. With the use of tech gadgets and mobile devices, the new generation is making its' impact on how retailers are doing business. Their voice is even being heard when it comes to same-day delivery growth.

Multichannels Merchants recently released news relative to a high percentage of millennials are all in with same-day delivery being offered as a shipping option. Fraud prevention firm Trustev and Coldwell Banker Commerical Affiliates performed surveys that found over 56% of consumers between ages 18-34 expect retailers to provide same-day shipping when they order online, and 64% of the millennial demographic were more likely to make an online purchase if same-day delivery was offered. This is a huge stat that is going to make a number of heads turn by physical and web-based only retailers that are not on board with same-day delivery yet.

Rurik Bradbury, CMO of Trustev, commented on the findings in the report. "They’re mostly digital natives, and the younger half grew up knowing nothing but online apps. So we can see how their worldview has shaped those expectations. At this point we’ve had e-commerce for more than 20 years, but now there are a bunch of same-day delivery providers like Deliv and Postmates, built with this group’s real-time demands in mind.”

In regards to fraud for the quick turnaround times for same-day delivery, he also said, “A lot of famous brands, including a large higher-end clothing retailer, have told us they dread the push from executive management to do same day because it’s not possible with their current process. The average retailer reviews 10% of its transactions, so to turn these orders around (while mitigating fraud) and not missing the one-day cutoff isn’t possible with current systems.”

Amazon and 1-800 Flowers were the only two of the 50 top retailers in the Manhattan area zip code 10001, which Trustev researched, that offered same-day delivery as a standard option within their checkout process. Yet, there is a growing list of companies diving into rolling out same-day delivery programs nationwide, including big name retailers like Walmart, Williams Sonoma, Target, Ulta Beauty, Costco, Staples, Ace Hardware, Neiman Marcus and Macy's. Kohl’s has now launched its' same-day pilot program in San Francisco and Chicago also.

Macy's is the department store retailer that has expanded its' same-day delivery service the most. Late last year, Macy's rolled out its' program in 8 major US cities, which included San Francisco, Los Angeles, San Jose, Houston, Seattle, Chicago, Washington DC, and New Jersey. Its' program grew into nine more US markets this past August, including plans by Macy's to expand into 14 more by the end of the year. Macy's now is in more markets with the service than Amazon.

With these figures by millennials, not to mention that online retail is forecasted to grow upward to $500 billion by 2018, companies will begin seeing that same-day delivery will become a standard option for shoppers. Retailers aren't on their own when it comes to implementing the popular service. They can partner with a same-day courier like A-1 Express and get their online business turned toward the new fast service trends to come. The New York Courier has a nationwide footprint and can help retailers gain more of the millennial market.

Reference: 9.24.15, www.multichannelmerchant.com, Mike O'Brien, Half of Millennials Want Same-Day Delivery, but Most Retailers Don’t Offer It