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Dive Brief:
- Amid retailers’ investment in order fulfillment, some services may be more worth investing in than others, according to a Forrester report shared with Retail Dive.Same-day and next-day delivery, in particular, are costly for retailers to implement and are not strongly desired by most shoppers, the report found.
- Three-fourths of U.S. online consumers said free shipping is among the most important criteria they consider when deciding where to shop online, but only a fifth of U.S. online consumers cited next-day or same-day delivery as one of the most critical factors in choosing a retailer from which to buy.
- Nearly half (47%) of respondents said the option for same-day delivery has no impact at all on which retailer or brand they’ll buy, Forrester said. And while grocery seems like a good fit for fast delivery, nearly half (47%) of U.S. consumers prefer to shop in-store for groceries to touch and see the products before purchasing them.
Dive Insight:
Given the costliness of implementing same-day delivery and shipping, and consumers’ lukewarm feelings on it, the investment may not be worth it for some retailers, according to Forrester.
A more cost-effective way to provide products quickly is buy online, pick up in store, Forrester said.Almost a quarter (22%) of U.S. online consumers are interested in buying online and picking up at the nearest store, while 27% are interested in curbside pickup and 15%seek out drive-thru pickup options, according to the report.
Major retailers, including Target, Walmart and Amazon, have invested in their same-day delivery capabilities this year. In July, Worldwide Amazon Stores CEO Doug Herrington said that the company had reached its “fastest Prime speeds ever last quarter.” The e-commerce giant attributed the achievement to investing in regional operations, placing products closer to customers and harnessing a growing number of same-day delivery facilities.
Delivery times have gotten faster over the years. The average delivery time between placing an order and final delivery dipped to about four days as of April, according to data from Project44. Among the factors contributing to faster delivery times are the variety of carriers and the easing of pandemic-driven barriers, experts say.
