on Mar 31st, 2014 in Delivery & Collection | 6 comments
 

That ethereal voice was enough for Ray Kinsella to build a baseball diamond in his cornfield in the movie Field of Dreams. But is this approach a sound business model for same-day delivery providers? It seems to be the model they are following: provide same-day delivery in anticipation that customers will eventually consider it standard practice – and actually want it.

Study after study shows consumers shop online mainly because of low prices and free delivery. Consumers consistently rank “fast shipping” toward the bottom of their reasons for returning to an e-tailer’s website. And yet e-tailers, brick-and-mortar stores, startups, and even the U.S. Postal Service have embarked on the quest to provide same-day delivery service.

Amazon, Nordstrom, and Walmart are among retailers offering same-day delivery in select markets for orders placed by a certain time. Startups such as Deliv and Instacart are getting in on the action, providing same-day delivery services for retailers in malls or for grocery stores. And, in an interesting convergence, eBay and Google have partnered with traditional retailers not only to deliver their products within hours of a receiving an order, but also to sell them online through consumer-friendly platforms.

The Postal Service stepped into this market with a short-lived pilot project in San Francisco and now a refined test in New York City. FedEx and UPS do not appear to be jumping in wholly with a same-day service aimed at the retail e-commerce channel, instead offering individual customers some a la cart same-day options.

Overall, the prices providers are charging for same-day delivery range from about $6 to $10. This is roughly in line with the value consumers place on these services, according to surveys. The price point is good news for consumers, but raises questions about same-day delivery’s sustainability. According to some analysts, many of the same-day services are money losers. Still, as the late Steve Jobs understood well, consumers’ preferences change as offerings are refined. Demand for same-day delivery could increase in the future, which means those already in the market could have an advantage over late entrants.

Share your thoughts on same-day delivery service. Is this something you want? Are you willing to pay extra for it? If so, how much and for what types of products? Where is the best opportunity for the Postal Service in this market?  

How important is same-day delivery to you when shopping online?

6 Comments


I need delivery within a reasonable amount of time (2-5 days), and it needs to be reliable. Although same day delivery would be a nice option, most of my purchases are not that critical. Tracking my package is also important to me.

I reason it is not important to me is because some stores websites offer same day pick up at the physical store.

There are situations where same-day delivery is needed. For parts and supplies, a household/appliance repair or an automobile repair shouldn't be waiting on the supplier/shipper. Even now my garage door is broken and taken apart. The supplier said "Same Day Shipping" on the website but waited two days to mail my parts. The local hardware store cannot possibly carry all the specialized parts to fix things these days. DIY websites are making Youtube videos in an attempt to sell you the parts. It really works great, except for no delivery on Sundays.

Why should I drive all around town getting parts with gas at $4/gal when I can get my parts same day delivered. I would pay $10-15 knowing that I could get the repair done tomorrow.

Study after study shows consumers shop online mainly because of low prices and free delivery. Consumers consistently rank “fast shipping” toward the bottom of their reasons for returning to an e-tailer’s website. And yet e-tailers, brick-and-mortar stores, startups, and even the U.S. Postal Service have embarked on the quest to provide same-day delivery service.

This is one of the WORST post office in the city. They are rude and very GHETTO, they do not know any answers to questions that you ask and the only answer they do have is I DONT KNOW. What type of answer is that!!! they which the phone to other ppl without telling you who you are talking too. I would not like to see anyone lose their job but they need retraining or to LOSE THEIR JOB.JUST BECAUSE YOU WORK IN THE INNER-CITY AREA DOESN'T MEAN YOU HAVE TO ACT LIKE THE STEREOTYPE TRASH THEY CLAIM THE CITY PPL ARE. IT'S LIKE THEY HIRED THE WORST PPL IN ST.LOUIS TO WORK THERE!!!!!! AND I WILL BE CALLING HIGHER UP'S FOR SURE UNTIL I SEE A CHANGE.

3415 N.Kingshighway st.louis mo 63115

I would love same day delivery but I just don't think it would be possible to do.

You're testing it in major cities like New York. It would never work in rural areas.

Most of my purchases are from ebay. There's no way those packages could be delivered same day.

It might work for places like auto parts stores but those places usually have a method in place already for same day delivery using their own drivers.

For the average person it just wouldn't work.

At least not until Scotty gives us his transporter technology.

I would rather have a USPS tracking system that actually works correctly. The post office is years behind FedEx and UPS when it comes to their tracking system.

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