How small businesses can benefit from same day delivery
Look at e-commerce giants such as Amazon and you will see that they put a lot of focus on faster delivery.
This is because they know that it is a major influence on people buying online and contributes to a great online shopping experience.
Big retail brands aren’t the only ones that benefit from implementing same day delivery. Small businesses can benefit from it as well.
A competitive advantage
Offering same day delivery can be a differentiation between you and your competitors. Everyone wishes they can get the items immediately after purchase. That is why physical retail is still a popular option for most.
By adding same day delivery to your shipping option, you will be the better choice. Especially if you have physical retail presence.
Reduced lost or damaged goods
Delivery that takes more than a day usually involve processing and sorting parcels at multiple points before reaching to the customer. This increases the chance of goods being damaged or lost.
With same day delivery, the item is picked up from sender location and straight to the recipient without going through any processing or sorting. You will reduce your cost of having to replace the goods.
It is also advisable to use a same day delivery company instead of handling your own riders because they have ways of insuring items are received in good condition and also liability coverage if anything does happen.
Cash on delivery (COD)
As mentioned earlier, physical retail is still a popular option because of instant-gratification. There are still many consumers that want the convenience of shopping online but don’t fully trust online payment methods or don’t have the capability.
You can do COD yourself where you deliver the item to your customer and get the payment at that time. You can also use same day delivery services like MatDespatch to do the COD for you. This will save you a lot of time which you can use to focus on getting more customers.
A more cost-effective way of growing your business is to get more customers to buy from you over and over again. It is 6-7 times more expensive to acquire new customers than to retain existing ones.
To get customers to come back they need to have a memorable experience buying from you. Same day delivery can give that to your customers.
Look around e-marketplaces and check the review section. You will most likely see customers talking about how fast or how late they got the item. Customers expect fast shipping. Give them even faster using same day delivery services.
Other than getting more repeat customers, you can also increase revenue by increasing conversion rates or increasing average basket value. Instant gratification is great motivation for people to shop online. Adding free same day delivery is a great tactic to increase your conversions. It won’t cost them extra and they will get their order today.
If you are concern about absorbing the costs for free same day delivery, you can try setting a threshold. For example, only orders above RM200 will be eligible for free same day delivery. That way you can increase revenue by increasing average basket value and it won’t eat up to much of your margin.
Don’t just concern over costs
The cost for same day delivery may be higher than standard delivery but that shouldn’t stop you from providing better a better experience to your customers.
The benefits you get by implementing same day delivery strategies outweighs the cost. Here is a perspective: A 2% increase in customer retention has the same effect as decreasing costs by 10%. And as mentioned earlier, it’s 6-7 times more expensive to acquire new customers.
So not only will your revenue grow, you will also end up saving more in the long run when you start including same day delivery into your business.
If you are interested in providing same day delivery but don’t have the resources like bigger companies, you can immediately start same day delivery with Delyva. Delyva is an all-in-one delivery solution for small businesses.