2020 trend: More small business doing same-day delivery
In our last blog of 2019, we gave some trends we predicted to see in 2020. We are going to take each of those trends and expound on them in the coming weeks and months. A couple of weeks ago, we talked about how the rapid growth of e-commerce is changing human resources in the logistics industry. This week, we are taking a look at another trend: how more brick-and-mortar stores would start to offer same-day delivery.
What’s causing the trend
Battling the Amazon Effect and trying to stay competitive in a retail world overwhelmed with the desire to always be better than the other guy are the two biggest factors driving the growing trend of small businesses offering various delivery services.
It used to be that giants like Amazon had to promise spectacular delivery to compete with small businesses that were attractive because they were close and had the local charm. But lower prices and the “give me what I want when I want it” mentality has made it harder for small businesses to compete not only with Amazon but other small stores. This forces them to not only maintain their local feel but promise services like fast delivery to keep their edge.
Not a new thing
By now, most of us are familiar with delivery services such as DoorDash, BiteSquad, or Postmates. These are companies that allow customers to order from restaurants via apps and have their food delivered within an hour. We have experienced same-day delivery for years with restaurants allowing customers to call in delivery orders, and now local businesses are doing the same.
Something interesting to note is, there has actually been a decrease in restaurants participating in these types of delivery. It is cost-prohibitive and lacks the “in-restaurant” experience, which has caused some local eateries to get rid of the delivery services. We would not be surprised if, after a few years of local businesses offering delivery, they go back to trying to grow foot traffic instead of trying to compete with delivery services.
Small business delivery
Despite the slow move away from restaurant delivery, instant gratification has only continued to grow and now, customers expect a certain ease and speed with every order, whether it be food or furniture. One example is still food-related, but it also includes smaller household items. Walmart is global and Harps is regional, but both have started offering home delivery services in recent months.
This has begun to expand to other local businesses, where they hire a local or regional delivery company to get out orders quickly and relatively cheaply. Customers are becoming so obsessed with the idea that they can have everything delivered to their door that they don’t mind paying a little extra for the delivery.
In September 2019, Onfleet surveyed 1,000 US consumers to gather their impressions on online versus local store shopping and delivery expectations. According to those results, 76 percent of the surveyed consumers said they would be more inclined to order from local stores rather than from Amazon if they could get same-day delivery. The same survey said that 54 percent of the respondents indicated they would be willing to pay local retailers for same-day delivery.
Plan wisely for delivery services
We already see local rapid delivery first becoming a major trend with larger items such as furniture, but soon small businesses will offer same-day delivery for smaller items that customers can order online or by calling the store. If your business plans to try this approach, you must plan ahead and not make this decision lightly. In this blog from last year, we offer tips for what you need to know and plan for when deciding on offering same-day delivery as a small, local business.
On Time Logistics would love to help out your business and provide you with our affordable and reliable last-mile delivery services. We are residential delivery specialists and know how to help your national, regional, or local company get their wares to people in Northwest Arkansas and Little Rock. Contact us today with any questions you have!