News Feature | September 25, 2017

Same-Day Delivery Services Tripled In The Past Year

Christine Kern

By Christine Kern, contributing writer

Direct Store Delivery Deployment

More than half of all retailers now offer same-day delivery, often through third-party services.

As consumer demands for fast and affordable delivery options rise, retailers are responding by increasing their services. More than half (51 percent) of retailers say they now offer same-day delivery, tripling the 16 percent last year, and 65 percent say they plan to offer it within two years, according to the "2017 Digital Commerce Benchmark Survey" from retail management consulting firm BRP.

According to BRP, “Consumer behavior and mobile technology are dramatically changing the traditional retail model. Amazon continues to disrupt retail as it delves deeper into brick-and-mortar with the acquisition of Whole Foods. Meanwhile, bankruptcies and store closures make daily headlines, as the phrase ‘retail apocalypse’ becomes the topic of many conversations. These developments dictate retailers’ necessity to adapt to the new customer journey to accommodate the blurred lines of retail and innovative methods of shopping driven by mobile technology, artificial intelligence and rapidly changing fulfillment methods. To succeed, retailers may need to reinvent themselves to create an effective blend of the physical and digital worlds to maintain customer loyalty.”

Some retailers have also adopted the use of third-party delivery, through the likes of Uber or Lyft, which  has also increased, from 20 percent of retailers last year to 32 percent this year, according to the report.

“With Amazon offering same day delivery in some markets, the push is on for retailers to get items delivered to customers as soon as possible,” said Jeffrey Neville, vice president at BRP. “Autonomous delivery and distribution are the next step with self-driving vehicles soon a reality and a few food delivery start-ups already testing the concept.”

BRP says that the movement in same-day delivery is driven by customer expectations for a personalized, seamless experience. Nearly half (49 percent ) of retailers will offer customers the ability to "start anywhere, finish anywhere" within five years, while more than half (54 percent) of retailers surveyed by BRP said that creating a consistent brand experience across channels is a top priority. More than a third (38 percent) of retailers also said that improving personalization is a top priority.

To download the complete 2017 Digital Commerce Benchmark Survey, click here.