The race to later cut offs

It’s predicted that in 2019 ecommerce will make up 13.7% of retail transactions worldwide with 1.92bn global digital buyers – that’s about 25% of the world’s population shopping online[i].

But with so many businesses delivering a similar ecommerce experience, how can you ensure your business is going the extra-mile and standing out?

There are plenty of options you can offer your customers which may improve customer loyalty – eg price, location and precision (Read our delivering brand loyalty article!) – but often, customers just want their orders delivered more quickly.

Around a quarter of customers want the option to have their items delivered the next day[ii] – and they’re often willing to pay more for the privilege which is why the vast majority of ecommerce businesses and their logistics partners offer this function.

Businesses always want to be better than their competitors, to offer a more advanced service – which is where the race to later delivery cut off times begins.

Later cut off times

A company’s ultimate aim is to get its products to the customers as quickly as possible in order to provide the best customer service experience it can.

The ‘deadline’ for placing your order with next-day delivery varies from business to business, with more innovative businesses setting the competitive cut-off for orders to be placed at midnight for next day.

But the industry is moving towards even closer cut-off times, giving consumers the option to place an order and receive it the same day.

Same-day delivery

To make the prospect of online retailing even more attractive, 78% of logistics companies are looking to offer same-day delivery by 2023[iii], with many already piloting and operating with new models of same-day delivery. Demand for this is only expected to increase.

The ultimate consumer aim is immediate product availability – people want their purchases sooner and their cut off times later.

As more logistics companies are innovating to offer quicker delivery, the industry is moving towards offering near-immediate product availability, with predictions that 40% of logistics companies will be offering 2-hour delivery options by 2028[iv].

Same-day delivery combines the convenience of the ecommerce market with the immediate product availability offered by bricks and mortar retailers[v].

But with consumers wanting to pay less for logistics luxury, it can be difficult for retailers to make sustained profits from offering same-day delivery options – particularly if you factor in the potential cost of near-immediate returns. Leading to the question – will same-day delivery ever become the standard delivery option for the majority of consumers or will it remain a pricey option for more demanding consumers and urgent orders?

If you’re exploring your options for a more enhanced delivery service for your consumers, get in touch. At Cygnia, we’re constantly innovating to provide you with the logistics services designed to enhance and differentiate brand experience and thereby, build customer loyalty.