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The past few years have indicated the e-commerce market has captured around 15% of global retail revenue, and this incline is indicative of a further rise for the foreseeable future. With the recent global pandemic of COVID many consumers are being swayed to purchasing online. Of course, with the consideration of retailer’s delivery options- simply put the quicker an item can be delivered the more likely the consumer would purchase. Today we discuss about the Evolution Of E-Commerce Fulfilment.
As a matter of fact, a research study shows just under 45% of consumers would pay an additional fee for a same day delivery service if the delivery amount is representative of up to 9% of their purchase. With ever-evolving online retail, same day e-commerce fulfilment is soon to be a norm. The question is who gets their foot through the door first and maps out a blueprint for the industry to follow.
As an online retailer, imagine being able to offer same day deliveries to your clients. With the above market research figures taken into consideration, your business could blossom. So how could you set the precedent and benefit from same day deliveries? How much would it cost? Let do some digging…
Underlining issues of in-house fulfilment
Many businesses who would want to offer the same day delivery service can find it very challenging to say the least. Imagine having to pick and pack the item, despatch the orders within minutes whilst maintaining the integrity of your inventory least not to forget the transport planning required behind the entire operation. This could in fact be a recipe for disaster if not executed correctly. Within weeks- if not days for many businesses the stock accuracy could lead to overselling items consequently issuing refunds, a decline in sales and most worryingly an unhappy customer which research strongly suggests would not be a returning customer.
So, it is safe to claim that if a same day delivery service is not executed correctly it could not only be damaging to the hard-built brand image but also to the profitability of the business.
Optimistic or pessimistic with your same day deliveries?
Scrap both you need to be realistic with your business. The likes of Amazon have invested and continue to invest hundreds of thousands into technology that can make predictions for what would be ordered for next day… A very standard approach is to limit your delivery radius for certain products. For smaller business however such investments into technology is not an option so therefore it is imperative that the infrastructure for the entire operation of the logistics from pick & pack to transport planning is running at optimum levels.
Numbers matter when it comes to same day E-Commerce fullfilment
Not only for your business but for your customers as well. On a lower value product ranging up to £10 offering same day delivery for £5-7 may seem unattractive however for that £50+ item customers may fork out that extra cash for those last-minute emergencies.
Limiting the radius for the same day deliveries and targeting areas zonally would allow you to get your product to the buyer in a timely fashion with a trustworthy delivery specialist.
Ideally an end to end service offering e-commerce fulfilment would be the most cost-effective solution. From pick and pack to despatch and delivery your orders could be fulfilled seamlessly. Stocking your goods in a warehouse with a full-time team who can pick & pack same day orders instantaneously and more efficiently than you could on your own. The benefit of a dedicated team handling your orders would not only mean fulfilment accuracy but moreover it would free up your time to scale your business. To top it off a warehouse with a fleet of couriers would definitely provide the facility for same day deliveries.
Overcoming challenges for an optimum delivery service
It is important to understand there are challenges to overcome when offering a same day delivery service, therefor partnering with an e-commerce fulfilment warehouse ensuring they have the correct infrastructure in place to partner with your needs. Offering a same day service would put you ahead of your competitors and drive your business to the next level.
Prestige Logistics Group Ltd have an infrastructure in place and are actively offering same day deliveries for their clientele and strategically delivering and shipping goods nationally and internationally.
Case study of same day fulfilment with a courier fleet
With a state-of-the-art secure storage and an experienced vast in-house team; Prestige Logistics Group have integrated their software with Client X’s selling platforms. All orders are received instantaneously at Prestige Logistics Groups facility. A dedicated fulfilment team receive the order then pick, pack and prepare to despatch within 10 min. The SLA’s for pick and pack have been maintained for over a 12-month period with Client X’s account. Client X has agreed a radius for offering same day deliveries with Prestige Movers, with a cut off time of around 2pm. Orders are picked, packed, despatched and then delivered before end of day. With Prestige Logistics Group’s fleet of courier vehicles same day deliveries are organised by the transport team. This unique infrastructure has benefited Client X in several ways –
- Not having to pay for a storage facility and local business rate
- Not having to pay staff for fulfilment
- Improvement on service levels and customer satisfaction
- Lastly and most importantly being able to concentrate on other elements of the business for growth and expansion.
“I hope you enjoyed my post on The Evolution Of E-Commerce Fulfilment”