Carl Adoumieh
Wednesday, July 28, 2021
What is same-day delivery?
Same-day delivery means having your parcel delivered within the same day your customer puts an order. It plays an essential role in the success of omnichannel retailing and eCommerce businesses. Same-day delivery also proves to be an excellent alternative to the immediacy that brick-and-mortar stores offer their shoppers.
Even though same-day delivery seems like an evolutionary step in the last-mile solutions and logistics industry, we are already there. More businesses are offering same-day delivery because of the instant and apparent effects that it gives their customers. So, why are so many eCommerce businesses offering same-day delivery? What are the benefits and challenges of same-day delivery? And how does Packaly resolve these challenges?
Benefits of same-day delivery
As same-day delivery grows, its benefits are becoming more evident, and more businesses realize its importance. Here are a few ways same-day delivery could benefit your business:
Speed
According to a Sendcloud survey, having only 3-5 days shipping options is often seen as unfavorable by consumers. Switching to same-day delivery is a significant boost to your online business performance that should be happening sooner or later. Being able to reach your customers at such a speed gives you a significant competitive advantage over your competitors and improves your customer experience.
Competitive advantage
eCommerce, an already USD 10.36 trillion industry, is set to grow by a compounded average of 14,6%. Therefore, market differentiation from your customers is essential, and same-day delivery might be just that competitive advantage you’re looking for. Think of same-day delivery as an investment in the market before you’re the one lagging behind your competitors.
Boosts scalability
McKinsey’s survey found that 50% of consumers in 3 European countries are willing to pay EUR 6 or EUR 7 for same-day delivery of purchases over EUR 59. Keep in mind all the other groups willing to pay for smaller (or bigger) purchases, and you have a whole new market segment for you to reach through same-day delivery.
With same-day delivery, you can start scaling up your business and acquire new customers before your competitors do.
Better customer satisfaction
Convenience is a trend in consumer behavior that has been growing over the years. Customers are looking for a balance between the convenience of store-and-brick shopping speed and the conveniently comfortable shopping from home. Therefore, offering your customers same-day delivery along with the benefits would heighten your customer experience and improve their satisfaction by giving them a delivery option that balances their needs and expectations.
However, even though same-day delivery is highly beneficial, many companies have failed to achieve same-day delivery. Let’s find out what the biggest challenges of same-day delivery are.
Challenges of same-day delivery
Same-day delivery could be very challenging and requires an investment in different aspects of the business. Let’s find out what are the biggest challenges that companies face when implementing their same-day delivery options.
Cost
Hiring full-time delivery people, developing or purchasing a license for a technology that requires employee training, hiring back-office employees for customer support and logistics management, processing a larger number of orders unexpectedly, scaling up the business, and rules and regulations are some of the many high costs associated with running your own same-day delivery.
Logistical challenges
Same-day delivery is a more efficient approach to last-mile logistics. And Like every other faster, better approach, an improved, more efficient system needs to be in place as businesses face daily logistical challenges.
Such challenges are shipping distance, such as not having warehouses nearby to allow same-day shipping, high pollution rate and emissions caused by inner-city shipping or inventory management, and unexpected market changes. Logistical efficiency is an essential part of the success of your same-day shipping business.
Staffing
Your same-day delivery is going to be your direct and probably only physical interaction between your business and your customer. Therefore, making sure that this experience goes smoothly is vital for the benefit of your business. After all, doing the job badly might have a massive adverse effect on the intended purpose of better customer satisfaction.
To do so, you need to hire the fittest staff for the position, train them, and have a fixed cost on your business even when you’re not receiving any shipment orders. All of this comes with a very high time and economic cost.
Technology
One of the reasons that same-day delivery was not a success until later in the 21st century is that the technology was not good enough to reach your customer on the same day. However, this technology is still challenging and could come at a higher cost.
The COVID-19 pandemic has forced retailers to look for new trends and ways to boost their customer experience. Throughout the past decade, we saw an increase in demand for ship-from-store and omnichannel retailing. These trends require new and reliable technology. This accelerated during the pandemic, as many stores turned their brick-and-mortar stores into dark stores and micro hubs to build a suitable omnichannel retail strategy.
Sustainability
Sustainability is one of the biggest trends in the eCommerce industry. With the rise of environmental awareness, customers are always looking for more sustainable options. The logistics industry is one of the most polluting industries, and your business needs to avoid causing more pollution. World Economic Forum (WEF) study found that last-mile solutions would emit 32% greenhouse gases and raise city traffic congestion by 21%.
However, sustainable options are not cheap and could come at a cost that might disorientate your customers and drive them away. So, what is the solution?
How Packaly solves same-day delivery challenges
Packaly is a last-mile delivery solutions company that offers express, same-day, and next-day delivery services. Built to change the way we think about logistics, one parcel at a time, Packaly develops technology to improve the efficiency of last-mile logistics and make it available for all. So, how does Packaly help you gain a competitive advantage and improve your customer experience with same-day delivery?
Fixed pricing
The high cost of same-day delivery is one primary reason why businesses avoid it. However, at Packaly, we have a very straightforward pricing model for our services. There are no hidden costs, and you gain access to all Packaly’s features of:
Shipping from store-to-door right away
Insuring your parcels up to €2500
100% CO2-neutral delivery
Tracking & tracing your parcels in real-time
1200+ Professional couriers ready to ride
Access to our integrations, Dashboard & API
4-digit verification code for your parcel
Age verification on request
Technology first approach
As a Logitech company, Packaly uses technology to drive change. Therefore, we are a tech-minded company that is always on top of the market, looking at different ways to improve your customers’ and your same-day delivery experience.
We offer our plug & play Delivery Dashboard, where you can set up and start shipping within minutes. We also provide several integrations to multi-carrier systems such as Paazl and eCommerce websites such as Shopify and Wix. We also have our API developed that you are welcome to use.
Less friction in decision making and fixed costs
Same-day delivery saves you a lot of waiting time, allowing for fewer decisions to be taken. With Packaly’s ship-from-store, you will be in charge of your parcel and the sole decision-maker as we provide complete control of your parcels through our Delivery Dashboard.
Therefore, you do not need to hire employees to deal with logistics. With Packaly’s same-day delivery, all you need to do is process the order and pack the parcel directly through our Delivery Dashboard, integrations, or API. Our professional Riders fleet will make sure it is delivered to your customer’s doorstep.
Efficient routing
As a tech-driven company, we develop our in-house tools and algorithms. One we are proud of is our multi-drop algorithm that allows our Rider to reach different customers on the same route. This is beneficial for the Rider and the businesses that will process deliveries faster and more efficiently.
Sustainable last-mile
Packaly is committed to leaving a green trace everywhere we work. Unlike most delivery companies, We cycle the necessary extra last-mile and ensure that all of our deliveries are CO2-neutral. We only do bike deliveries to further align with our mission of changing the way we think about logistics, one parcel at a time.
Boost your customer experience
With all the benefits of same-day delivery, all of Packaly’s tools to tackle these challenges with a delivery success rate of 99.98%, and Packaly’s professional Riders fleet, there are no doubts about Packaly’s ability to boost your customer experience without adhering to massive costs or time-wasting processes.
The same-day delivery market is growing by 36% a year, according to the WEF. It will keep on growing as technology keeps developing and the eCommerce market keeps soaring. Being a tech-oriented company that already has solutions to the biggest challenges facing same-day deliveries, Packaly might just be what your business needs.
Sign up to Packaly’s Delivery Dashboard in minutes and boost your customer experience with our express, same-day, or next-day sustainable delivery solutions.