Best Buy Begins Testing Same-Day Delivery In 13 More Markets

It's not a light matter when you as a retailer see continuous Same-Day Delivery expansion by Amazon. If you're a competitor, you must decide to expand as well. A recent report by Forbes discusses how electronics leader Best Buy has announced it will be rolling out testing of same-day delivery in 13 more major metropolitan markets nationwide. The announcement comes shortly after Amazon's official roll out of free same-day delivery in 11 US cities.

With the consumer electronics having the highest online sales percentage in US retail, as well as eMarketer expects computer and consumer electronics revenue from online retail sales in the US will exceed $85 billion this year, Best Buy is taking an aggressive approach to take on Amazon regarding same-day delivery. This initiative began last year, as the retailer began testing the service in San Francisco and its' surrounding areas, New York and Washington DC.

Best Buy is partnering with start-up delivery company Deliv, which utilizes a crowd sourcing base approach to fast same-day services. Deliv essentially fulfills online orders via Best Buy stores. It takes a good mix of volume, infrastructure and demographics for the service to be successful. Best Buy has over 400 stores nationwide, and with this type of reach, the retailer can implement same-day delivery on a mass scale where its' locations are.

The testing expansion into 13 metropolitan city markets is more than likely only the beginning of more to come, especially if it wants to seriously compete with Amazon. In comparison, Amazon is now up to 27 major cities that it provides free same-day delivery, and the year is far from over. EMarketer also stated in the article that revenue from computer and consumer electronics retail sales online will also grow to over $100 billion in 2018, making it the US retail product category with the highest generated revenue. Best Buy may not be done with expanding either.

One reason is solely based on the holiday season, per a National Retailer Federation survey, consumers said 46% of their holiday shopping in 2015 would be done online. This figure brings into view for Best Buy, Amazon and any other major retailer the vital need to be innovative online more than ever before. The article mentioned Best Buy's same-day delivery is a part of its' ongoing commitment to improve the in-store and online shopping experience. It meets a higher level of convenience demand that online shoppers are looking for, and it indirectly promotes traffic into physical stores.

Several retailers team up with a Nationwide Courier like A-1 Express to implement same-day delivery throughout the US. The New York Courier has the courier expertise and size to effectively establish delivery solutions in any key major US city. As Amazon and Best Buy go deeper into last-mile deliveries, more and more companies will too.

Reference: 4.13.16, www.forbes.com, Trefis Team, Same Day Delivery: Best Buy's Plan to Take On Amazon?