Same-Day Delivery:
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How to help your stores give shoppers what they want
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The COVID-19 food delivery boom
SECTION ONE
Retailers are working hard to meet expectations
SECTION TWO
How to turn stores into same-day delivery masters
SECTION THREE
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An Aptos iPaper
Driven by increasing urbanization, rapid eCommerce adoption and changing customer expectations, the same day B2C delivery market is expected to grow at a compound annual growth rate (CAGR) of 23% from 2020 to 2027.
of consumers are willing to pay a charge for same-day delivery
Source: PWC
How to help your stores give shoppers what they want (and help you find new competitive advantages)
Consumers want speed and convenience, and they’re willing to pay a premium for it.
of shoppers said they would pay more to receive packages within a one-or-two hour window of their choosing
Source: Grand View Research
41%
24%
And they show no signs of letting up anytime soon
This desire for convenience, coupled with new safety precautions related to the pandemic, caused same-day delivery—especially for essentials like food and home products to surge.
Mid-pandemic trends in food delivery service revealed the magnitude of this change:
The four top US food delivery apps saw revenue rise $3B collectively in the second and third quarters of 2020.
Pale Green Dot, a UK based distributor that provides local, sustainable ingredients to chefs, found a way to capitalize on same–day delivery demands. They rebuilt their website (overnight) to add home deliveries and within days they went from 100% commercial business to 95% residential. They soon moved into a larger facility and expanded their fleet from 6 to 40.
Selfridges offers same-day delivery within 2 hours for addresses inside London's M25.
An Aptos iPaper | Same-Day Delivery
But the surge has not been limited to food, by any means
As grocery stores have become adept at consistently delivering food within hours, consumers are now beginning to expect the same from other categories of retail as well.
Shopper expectations have definitely shifted
Source: Marketwatch
Q2 2019
Q3 2019
Q2 2020
Q3 2020
$1.5B
1.2
0.9
0.6
0.3
0
Matches partners with Addison Lee to deliver to London addresses in 90 minutes.
In a move bearing careful observation, Amazon has extended same-day delivery services beyond London to Edinburgh, Glasgow, Birmingham, Bristol, Manchester, Liverpool, and Leeds.
In the UK, many brands are responding to the surge
Demand for 30 minute(!) deliveries has Gopuff on the go
Source: TechCrunch
Available in more than 650 U.S. cities, Gopuff delivers a wide variety of products in under 30 minutes while charging a flat $1.95 delivery fee. The startup is already valued at $8.9B USD, and were recently reported to be in talks to acquire the UK’s Fancy Delivery, one of several European startups borrowing from the Gopuff model.
of consumers surveyed now expect same-day delivery options
30%
Source: McKinsey & Co.
Share of shoppers utilizing same-day shipping from web-only merchants
0%
10%
36%
14%
26%
20%
40%
Share of shoppers utilizing same-day shipping from store-based merchants
2021
2020
Source: Statista
of shoppers at web-only retailers requested same-day delivery through April 2021, an increase of 50% over 2020
of shoppers at store-based retailers also requested same-day delivery through April 2021, an increase of nearly 86% over 2020
And their actions speak as loudly as their words
Even commercial food purveyors got in on the delivery surge
A sampling of retailers offering same-day delivery
Retailers are working hard to meet those expectations
Inventory Accuracy
However, within those challenges lie real opportunities. We just need to know where to look.
Meeting these demands comes with challenges, of course
77%
Stores face numerous same-day delivery challenges as well
Source: AP News
of specialty retail supply chain leaders are aiming for same-day delivery by 2022
42%
said that delivering products on the same day is their biggest challenge
of warehouses
Order Flow
Customer Communications
Knowing what’s in stock inside each store is a challenge for many retailers
Aligning the volume and timing of orders to available personnel is always difficult
Ensuring customer communications are timely, accurate and effective can also be difficult for stores to manage
Competitive opportunity knocks: online giants can’t fulfill from stores
They must fulfill from their warehouses, where you will recall they say their biggest challenges are fulfilling same-day orders.
As eCommerce grows, online brands must add warehouse space to keep pace
Analysts estimate that every $1 billion increase in eCommerce sales requires 1.25 million square feet of warehouse space.
Luckily, we need look no further than our own stores
They are close to your customers, they are stocked with inventory and they are rapidly becoming a critical part of the order fulfillment lifecycle.
As an added bonus, store deliveries can be more sustainable as well
When orders are delivered from local stores that are close to the customer, the environmental impact of single-item deliveries – particularly in urban areas – can decrease significantly.
Just a bit of visual proof that maybe it’s time to evaluate your strategy and get your stores involved in differentiating your brand.
Source: Pierbridge
Source: Forbes
How Aptos can help you offer same-day delivery
Aptos Order Management: Ensuring well-choreographed commerce
Aptos EOM helps you make promises you can deliver profitably, from shopping cart to front door, with integrated end-to-end order orchestration tools:
So, how do we turn our stores into same-day delivery masters?
Five steps to turning your stores into competitive advantages:
We recommend ensuring that you have a crystal clear view of your inventory before promising something like same-day delivery. Further, you’ll need to really understand your products and the best way to efficiently and safely deliver them to your customers before you know what is realistic for you to promise. Don’t just mimic other companies - your products may be different than theirs, so they may have different requirements.
Many retailers are turning to same-day delivery apps and services
While some of these primarily cater to grocery and household products many also serve other categories like specialty, beauty and even furniture delivery.
With Aptos store fulfillment, you can leverage every store as a fulfillment center to help you keep up with customer demands and deliver every order on time.
Aptos is the largest provider of enterprise software focused exclusively on retail. Our cloud-based Singular Retail™ solutions are trusted by over 1,000 retail brands in over 65 countries. With industry-leading omnichannel commerce and merchandise lifecycle management solutions, we help retailers develop dynamic and responsive assortments, streamline operations and deliver integrated, seamless experiences… wherever shoppers choose to engage. More than 1,300 colleagues share our collective passion for engaging customers differently, and we are committed to developing relationships built on trust and tangible value by partnering with our clients to create agile retail enterprises that are built to thrive in an era of constant change. Learn more at aptos.com
About Aptos
1. Understand your inventory
Set the right expectations from the very beginning, and create a plan of what you will do if you miss a deadline. Your customers expect clear, consistent updates about when they will receive their products. If you can’t deliver that, then don’t risk the damage to your brand. But if you can, then use this as an opportunity to keep your customers happy. As long as you can deliver on your brand promise (making things right when you miss a deadline), you will keep your customers satisfied.
2. Manage expectations and stay in communication with your customers
If you work with a delivery partner, you’ll want to make sure that they prioritize your customers the same way that you do. You essentially want them to be an extension of your brand. If you don’t feel like they offer the same care and attention as you, then find another company to work with that does. Because your customers will judge the quality of their experience based on all touchpoints, including delivery.
3. Vet your partners
If you’re going to achieve sustained competitive advantage, you’ll need a clear strategy when it comes to fulfillment. Will you be picking and packing from a few dedicated stores? Or are you equipped to consider a micro-fulfillment system—where parts of your stores are used to fulfill orders using automation? Will you be able to arm your store associates with mobile technologies to help them pick and pack, and also be able to check real-time inventory status? What support will be required from a corporate perspective? These are all questions you should consider.
4. Design a strategy that works for your brand and your customers
This may sound self-serving, but there’s no other way to ensure consistent, reliable and repeatable same-day deliveries. You’ve simply got to have an integrated, smart order management system in place to source, route, delegate, track and communicate the status of every delivery to every stakeholder—be they store associate, corporate associate or customer.
5. Invest in order management technology
• • • •
View the Forrester Wave OMS Report
View the Same-Day Delivery Checklist
Ensuring every order gets delivered on time, every time
• • • • •
Manage inventory across the enterprise to ensure you only promise what you can actually deliver Source delivery orders according to proximity, inventory, availability and staff capacity Alert store personnel of pending deliveries to ensure they are picked in a timely manner Track the progress of every order and escalate exceptions Manage all customer communications throughout the delivery lifecycle
Real-time inventory visibility and reservation Intelligent order sourcing and routing Comprehensive store fulfillment integration Support for 35 unique customer use cases
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