Will Retailers Charge For Same-Day Delivery?

It takes a lot of customers to not want same-day delivery to be a good option when they can't get to the store themselves.  The question is when shoppers do pursue to take advantage of the same-day service, do they like what they are being charged for it.  Online retail is forecasted to grow upward to $500 billion by 2018, therefore, shopping online will continue to be a source for revenue for retailers, yet will same-day delivery help make e-commerce more attractive to customers. 

The Denver Post recently discussed how customers like same-day delivery, but don't like paying the cost.  That is similar to any convenient item, such as the ATM, but there is a common need to use them.  Kozmos begin same-day delivery over a decade ago, but didn't have the wide use of technology to help throttle it's idea forward into a greater demand.  "I remember using Kozmo.com a decade ago," said Chicago TV producer C.J. Dugan in the article. "One night we ordered a tub of ice cream and the movie 'Pitch Black.' They showed up in about 30 minutes. ... It was before its time, I guess."  The desire is there for same-day delivery; it is the fee for the service that retailers have to pinpoint that will create the longevity success of it.

If free is what shoppers want, the only retailer coming close to offering free same-day delivery is Amazon.  What first started out in 14 Los Angeles metropolitan cities earlier this year, expanded to Chicago, Orlando and now is in 16 US markets.  "Over the past 18 to 24 months, Amazon has been pushing the bar.  If you're in retail, you have to step up to the new bar," said Daphne Carmeli, CEO of Deliv in the Denver Post article.  Deliv is a crowdsourcing  delivery company that partners with retailers and malls to perform same-day delivery for them.

One of Deliv's biggest partners is Macy's offers same-day delivery is major US cities including Seattle, San Francisco, Los Angeles, San Jose, Houston, Washington DC, Chicago, and New Jersey.  Macy's even has more markets offering the last-mile service than Amazon.  The retailer also has over 800 stores in which they can fulfill online orders from.  This makes Macy's one of th potential retailers that could really out do Amazone with its' same-day delivery models due to its' physical locations.

Macy's offers its' same-day delivery for $5 for orders over $99.  Amazon has been offering same-day delivery free for Prime members, which pay a $99 annual fee.  Shipping industry expert Satish Jindel stated in the report, "Retailers trying to compete with Amazon on the road Amazon created will always be at a disadvantage".  Free service is something that many retailers will have to strive for, in contrast to Amazon which is leading the pack.  Many retailers charge between $5 and $20 for their fast delivery service.

As the holiday season continues, shoppers are going to be given the option to have their online orders delivery same day.  Kohl's, BestBuy, Wal-Mart and more have all jumped into the same-day delivery race.  For retailers that are seeking to implement a fast delivery model, a Same-Day Courier like A-1 Express can partner with them and meet the convenient demand that their shoppers have. The Miami Courier has a nationwide footprint, enabling it to service the largest of retailers and businesses. 

Reference: 11.29.15, www.denverpost.com, Mae Andersen, Everyone loves same-day delivery, until they have to pay