Same-day delivery is an area of intense competition in e-commerce. In the past, the idea of providing instant gratification to online shoppers seemed too expensive and complex in terms of shipping and fulfillment.
But new consumer behaviours and expectations are changing the equation. E-commerce companies believe they can finally persuade customers to pay a fair price for virtually instant delivery, while bypassing traditional logistics channels.
In a new report, BI Intelligence takes an exhaustive look at the same-day delivery market, sizing the percentage of people who will purchase goods to be delivered the same-day this year. We examine who is the target customer for same-day delivery, the markets where these services have the best chance of taking off, and assess how each of the many new same-day delivery entrants compares to the others.
Here are some of the key insights as to why consumers are ready for a same-day delivery market:
- The top reason people select same-day delivery is time constraint. More than 50% of US consumers said it’s because they need a last-minute gift, according to Boston Consulting Group.
- In general, same-day delivery is important to gift shoppers: More than 40% of consumers said they would abandon an online shopping cart if they couldn’t have gifts or flowers delivered the same day, according to a 2013 Bizrate survey.
- Convenience is still a significant reason people use same-day delivery. 30% of consumers said they would select the option simply because they didn’t feel like going to a store.
- Bulky products not easily carried home from a store are popular for same-day: Nearly 60% of US consumers said they would be willing to pay more than $US10 to have furniture delivered the same day. Large appliances were a close second. These results indicate there are certain types of orders where convenience outweighs the added cost of quick delivery.
In full, the report:
- Estimates the market for same-day delivery from 2013-2018, including the percentage of people who will use these services and the total sales volume
- Looks at the most likely same-day delivery customers and demographics and the cities where these individuals are concentrated
- Unpacks the kinds of goods people are likeliest to order for same-day delivery
- Lays out how the different same-day delivery services stack up against each other in terms of prices, location, and selection
- Considers the barriers that could keep same-day delivery from ever becoming a mainstream preference among consumers
- Identifies the technology that could make same-day delivery cost-effective and commonplace
To access the Same-Day Delivery Market Forecast Report and BI Intelligence’s ongoing coverage on the future of retail, mobile, and e-commerce — including charts, data, and analysis — sign up of a trial membership.
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.
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