The rise of Same Day Delivery

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It’s official. Same day delivery is a thing now. Amazon offers same day delivery for a variety of their items, depending on the location it’s being delivered to. Manchester fashion giant Missguided also offered same day delivery prior to Covid if customers ordered before a certain time of day and lived within the Manchester area. However, why is same day delivery so in demand and how have we become so reliant on the instant gratification that same day delivery satisfies that the service has entered the mainstream of delivery options?

Same Day Delivery isn’t for everyone.

Same day delivery is a service that is difficult to deliver for many companies. Planes and vans can only travel so fast which means only a limited number of locations are actually eligible to receive same day deliveries.

Many eCommerce merchants are unsure whether they need same day delivery for their businesses or not. For Missguided, a large base of their customers are located in the same area as their warehouse and HQ – Manchester. So it was an obvious choice for them that same day delivery would be worthwhile. There are a few deciding factors that can help determine if same day delivery is right for your company:

  1. Size and ease of product transportation
  2. Location of the buyer
  3. Age and demographic of the buyer
  4. Product Margin
  5. Expense
  6. Location of your warehouse in relation to the majority of buyers

Why is age range and demographic of your customer so important?

Millennials and Gen z’s love the immediate access of products and the instant gratification of placing an order and its subsequent arrival within hours. A survey from Bizrate Insight reports that nearly 30 percent of millennials view delivery timeframes as important, compared to just 5 percent of older buyers. Delving into your analytics can help determine the age range and demographic of your customer to help determine if same day delivery is an avenue worth pursuing. If you have a young demographic in a location that would be easily accessible for same day delivery from your warehouse then go for it!

With Missguided for example, they determined that their target audience (millennials and Gen Z women) lived in locations with ecommerce and internet access, and one of these locations was Manchester. A lively city with a young demographic who made up a large portion of their buying market. Same day delivery for fast fashion can also save the day if you need an outfit for a night out last minute. Given that Covid has stunted out night out plans for the foreseeable future, it makes sense that Missguided have currently made this delivery option unavailable. We aren’t going out as much now, and we have more time on our hands, which means same day delivery, especially for clothing, isn’t such an urgency anymore.

Amazon Same Day Delivery

Amazon sells pretty much EVERYTHING, which means unlike Missguided, their buyers cover a wide range of demographics, not just fashion conscious young women. Launched in 2019, Amazon same day delivery under prime has already proved its worth as it now ships same day to 72% of US buyers, with the only locations not able to be served deemed too remote.

Same day delivery is one to look out for, and with ecommerce sales continuing to rise, we expect to see a lot more merchants looking to roll out a same day option in the near future.

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