Cargone Couriers – The pros and cons of same day delivery
The idea of same-day delivery is a now becoming the way of the future for many retailers as a way of alluring online shoppers and to have a major advantage over competitors. Although same-day delivery sounds appealing to most, it is still unknown if retailers can realistically achieve delivery in just a few hours, and if they should even want to.
The option for same day delivery when shopping online, or even in-store, is becoming an option that most customers find important as it is extremely convenient. This is especially the case in major cities around the world where e-commerce and m-commerce are highly developed. In these cities, the retail sales from online purchases can make up as much as 10% of all total retail sales, and Australia is slowly closing in on that category.
Although there was a time where the thought of receiving goods and parcels only a few hours after purchasing them online was uneconomic and completely unworkable, it is slowly becoming the norm.
American online retail giant Amazon had launched a same-day delivery service in 2016 in 14 of the biggest US markets. Amazon has started negotiations to lease up to 25 cargo planes to ensure that the company has greater flexibility on delivery and to allow for the company to become independent and not heavily rely on a third-party courier service. Many other major online retailers, such as large department stores Macy’s and Bloomingdale’s, have also expanded their same-day delivery service, showing that this express delivery option is growing amongst major retailers around the world.
Even though there is an interested, excited and passionate customer base in Australia, the option for same-day delivery is still not commonly used. Cargone Couriers is a bicycle delivery service in Melbourne that specialises in delivering urgent and express deliveries. From mail collections, gift drop-offs and receiving your online order within the same day of purchase, Cargone Couriers has you covered.
Even though there aren’t many that wouldn’t opt for their online orders to be delivered as promptly and independently as their online food order, it does not necessarily mean that it will become the standard for all online retailers.
There are a few reasons as to why same-day delivery will not make a lot of economic sense for retailers, especially for smaller chains and companies.
The first is that if a retailer wants to opt for same-day delivery, they must maintain and sufficiently uphold accurate inventory for each area and for each product. This means that the retailer must not only have adequate storage space to ensure that there is enough stock in all areas where same-day delivery is an option, but they must also have access to extremely sophisticated predictive analytics. This analytics must be able to accurately assess the amount of stock that is in the storage space and how much is and will be required at any given time of the year!
The second is that there are factors of online shipping that many customers prefer and value more than the option of same day delivery. Research suggests that online customers place more value in the cost of shipping, most opt for free shipping and place an importance on transparency on the exact date and time of delivery, rather than goods arriving at a lighting speed.
Online shoppers place importance on knowing that their delivery will be made within a 5-day window and most are more likely to wait longer for a package if it means they pay less or nothing at all. There is still a want and market for same-day delivery services, however, and this is especially the case during busy times of the year such as Christmas, where people are pressed for time and shopping centres tend to be extremely crowded.
For all of your on-demand and same-day courier service needs in Melbourne, Cargone Couriers are the experts that specialize in express and urgent deliveries in Melbourne’s CBD and inner-city suburbs. Cargone Couriers have got you covered.
Contact the friendly team today on 0450 553 933 to book a cargo bike courier in Melbourne!