Survey: Despite costs, retailers see benefits of same-day delivery
Companies who offer same-day delivery see a number of benefits, including increased sales.
Nearly one-third of retailers reported a revenue increase of more than 10% after implementing same-day deliver, according to new data from logistics management and crowdsourced delivery platform Roadie. Retail executives cited higher customer satisfaction (80%), an increase in sales (70%), and improved retention rates (66%) after offering speedy delivery.
Most companies surveyed that offer same-day delivery have done so for three years or more (63%), and nearly seven-in-10 (68%) found their same-day delivery ROI trends consistently upward year-over-year. The survey found ROI unlocks insights that help make decisions about:
- Product and service offerings (65%)
- Expansion of same-day delivery in new regions (59%)
- Warehouse space (54%)
- Distribution facility locations (51%)
- Logistics investments (45%)
- Labor (37%)
“Same-day delivery isn’t just a competitive advantage for retailers, although it’s a critical one. It’s also a money-maker,” said Marc Gorlin, founder and CEO of Roadie. “To compete, retailers have to offer a menu of delivery options to let the customer choose when and how they want their purchase, each and every time they buy. But the potential payoff is clear – same-day delivery is a data-backed revenue-generating channel.”
Despite the gains in sales, satisfaction and retention, operational costs rose for 79% of companies after rolling out same-day delivery according to the survey, highlighting the need for cost-efficient delivery models.
Most companies surveyed by Roadie increased their prices when they launched a same-day delivery service, but in a variety and combination of ways. Nearly three-in-10 (29%) raised the prices of their products to offset delivery costs, while 24% offered a free trial first, 17% charged an annual fee and 14% charged a one-time flat fee.
Another 13% of companies charged a same-day fee on each order, and 13% charged a monthly fee. Only 21% did not charge customers or raise prices, and 7% actually decreased their prices after adopting same-day delivery.
“Retailers can mitigate some of the up-front costs of a same-day delivery program by piloting with partners that can help keep start-up costs to a minimum,” added Gorlin. “That can allow them to experiment, play with pricing and service levels, and optimize to ultimately find the sweet spot. Though operational costs might rise at first, same-day delivery opens up new potential in sales, market share, and customer loyalty.”
Founded in 2014, Roadie, now a UPS Company, enables local delivery to more than 97% of U.S. households by providing access to more than 200,000 independent drivers nationwide.