65% of retailers will offer same-day delivery by 2019 (INFOGRAPHIC)

Small businesses are always looking for ways to gain a competitive advantage in the marketplace. Now they don’t just compete on price and Customer servicebut also on speed.

According to a recent report According to Go People, a Sydney-based on-demand delivery and courier start-up, 65% of retailers will provide same-day delivery services by 2019.

“Globally, same-day delivery is no longer just a concept. Instead, it’s common practice in many industries these days,” writes Nick Hartman, director of marketing and communications for Go People, on the company blog. “Fashion retailers, food and beverage companies, medical suppliers, auto accessory manufacturers and many more are now offering same-day delivery service to consumers.”

Demand for same-day delivery services is increasing

If you regularly conduct delivery transactions for consumers, one of the things you should focus on is meeting your customers’ demand for fast delivery service, Hartman says.

For many customers, who do most of their shopping online, same day delivery is a key factor they look for before making a purchase. According to Go People, up to 61% of shoppers are willing to pay extra for the convenience of same-day delivery, including saving time and travel to pick up goods.

From a business perspective, same-day delivery increases customer satisfaction and can help you build customer loyalty. In fact, offering same-day delivery can help your business gain a competitive edge over 85% of others in the industry, according to the company.

Companies that have same-day delivery capabilities are well-positioned to achieve twice the conversion and significant year-over-year sales increases.

“Every time you deliver on your promise to make their orders immediately available to your customers, you’re making a positive impression that will help keep your brand top of mind,” Hartman adds.

Same Day Delivery Challenges

Around 41% of merchants already offer same-day delivery, but the service is not without its challenges. Delivering customer orders within hours or within a certain timeframe on the same day can be very expensive and a logistical nightmare if not handled properly.

“It’s very difficult and expensive,” Daphne Carmeli, chief executive of Deliv, a Silicon Valley-based same-day delivery startup, Told Inc in an interview. Carmeli was responding to rumors that eBay was preparing to kill its same day delivery service, eBay Nowa claim rejected by eBay.

Carmeli observed that eBay’s challenges in implementing same-day delivery stemmed from couriers overpaying and its process not being efficient. Also, too few people use eBay Now. These are common challenges that smaller retailers also face when expanding same-day delivery.

Small retailers not only need to attract customers to their online or physical store, but also ship these orders quickly. Problems arise when small businesses do not have the resources, capital, or personnel to run such a service.

“If you’re selling something for $20 or $30 and you’re paying minimum wage [to your courier]I guess the margins are pretty slim,” Kerry Rice, an investment banking analyst at Needham & Company told Inc. “You really start eating what’s profitable.

However, if you are able to overcoming the challenges of implementing same-day delivery in your business and your customers are actively requesting the service, it’s worth it. You could make a lot of money by putting same-day delivery at the heart of your operations, says Hartman.

Same Day Delivery Growth — Infographic

Go People has created a helpful infographic showcasing the global same-day delivery stats you need to know. The infographic also offers other useful information you can use to strengthen your small business’ position with same-day delivery. Check out the infographic below to learn more.

Image: Come on people

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