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Same-Day Shipping – Is It Sustainable?

In today’s fast-moving world, the modern supply chain network faces ever increasing customer demands for same-day shipping. A recent survey reveals that nearly 56% online shoppers in the 18-34 year age group prefer same-day shipping and 61% consumers will pay more for the convenience.

Thanks to advancements in technology, same-day shipping has resulted in a faster and improved shopping experience for e-commerce consumers. In fact, it is so popular among consumers that more than half (nearly 51%) of retailers currently offer same-day shipping options and that is expected to grow in the coming years.

However, the question remains – how feasible is it for same-day shipping to become a standard option offered by most retailers? Let’s take a look at the evolving trends of same-day shipping and its pros and cons.

Advantages

Retail giants like Amazon and Walmart have pioneered and nurtured the concept of same-day shipping. They continue to innovate and fine-tune technology and systems to make same-day shipping smooth and sustainable. Here are a few of the gains that can be realized by etailers who master the art of same-day shipping:

Minimized cost of inventory

Same-day shipping turns out to be positive to effectively manage inventory for warehouses that require huge amounts of products/packages to be stored. Shipping packages same-day frees up space for new inventory. For businesses, this means reduced complexity and reduced storage costs.

More satisfied customers

When a customer visits your site expecting a same-day delivery option and finds it, the probability of completing sale skyrockets. In turn, that satisfied customer is much more likely to become a returning customer as well as advocate of your business which may result in referrals and more business in the future.

A survey by the Internet retailer, Digital Commerce 360, said that nearly half of the participants surveyed would abandon their cart if same-day shipping option was unavailable.

Improved productivity

Same-day shipping involves a lot of hustling. Orders get shipped the same day, each person involved understands the importance of the process and functions to the maximum, inspiring a new level of productivity.

Challenges

Same-day shipping has actually become a standard practice across various industries today. However, it comes with its own challenges. Following are some of the drawbacks that need to be considered before you commit to same-day shipping.

High cost

Efficient processing of same-day shipments involves investments in technology, manpower, equipment and floor space. Careful consideration should be given to insure the business will see an acceptable return on those investments. Also consider that not all customers will be swayed by same-day shipping and will instead base their purchase decision on other factors such as price of the item.

Reduced efficiency

Planning and strategizing for same-day shipping requires a lot of operational best practices. Cut-off time, grouping orders, receiving packages to be shipped on time, and a lot of such issues need to be taken care of. All of this requires rigorous and proper planning along with foresight for last-minute emergencies, which not everyone is equipped to deal with it.

Logistics crash

Same-day shipping can translate into a logistics burden. Your fleet strategy needs to be sound. Modifying existing procedures to accommodate same-day shipping can be disruptive. An extra effort to optimize these logistics procedures is essential to address this challenge. A better and efficient technology base is required to handle the increasing volume of same-day shipping orders.

To know more about MAI’s expertise in contact center and fulfillment services, please give us a call.

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