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Same-day delivery and our on-demand economy

Same-day delivery and our on-demand economy

Increase your average basket value and improve conversion rates through offering same-day delivery.

There are many statistics thrown around regarding demand for same-day delivery, some less believable than others. For instance, it is said that a quarter of shoppers will abandon their online shopping cart upon learning that same-day delivery is not available. I can’t see this as a true representative of shoppers at all, but there are more realistic and interesting stats in my opinion.

Temando claim that 61% of shoppers want the option to receive their package within three hours of placing the order. How many would be willing to pay the extra costs is the big question here. Temando answered this by stating that only 31% of shoppers are willing to pay to receive an item within 1-3 hours.

2Flow have said only 15% of global retailers offer same-day delivery and nearly 50% of shoppers say same-day delivery makes them more likely to shop online. The major point here is that it means companies offering same-day delivery can gain a massive competitive advantage over 85% of their competition!

If your competitors aren’t offering same-day delivery, then it’s an opportunity that you should seriously look into taking advantage of. Logistics, high costs and staffing will be your biggest constraints, but consumers don't expect it for free.

On average, buyers expect to pay $15.78 for same-day delivery, varying by category. Millennials care less about shipping cost - and more about timings - than older generations do. In light of the fact you will be the only company offering the delivery option, you don’t have to be too prudent on costs. Those consumers who need same-day delivery will end up buying from the company that offers it; in this instance, yours.


With the large ecommerce companies like Walmart and Amazon offering Same-day Delivery, it’s a service that will be pushed to be more competitively priced as consumers come to expect it, and demand it locally.

Does same-day delivery increase Basket Value?

Everyone likes getting something for nothing. It’s the reason free delivery offers work. Many retailers offer free delivery over a certain price point to help increase basket value and sales figures, and help subsidise the cost of delivery. But what this also does is create a better customer experience, it’s a win-win.

I’m guilty of not paying £3.99 for next day delivery if I know I can add something extra to my basket I might need, and be entitled to that same delivery service for free! The speed and convenience of same-day delivery above a certain basket value is the next logical step from next-day delivery.

Cost concerns don’t come without potential benefits. Improved conversion rates and increased revenue from increased basket value, alongside a growing loyal customer base, provide long-term benefits that will help your business grow.

Does same-day delivery increase Conversion Rates?

What many companies don’t realise is that a 3-5 day shipping timeline is just long enough to make a customer second-guess their decision to purchase on their site. With competitor websites just a few clicks away, many consumers will compare competitor delivery times before purchasing, if prices are matched.

Free same-day delivery completely removes that moment of questioning and reinforces their company choice through eliminating alternative options. Instant gratification is increasingly demanded socially and economically nowadays, and offering near-instant gratification through same-day delivery to customers will have a positive effect.

Better still if you are the only company offering same-day delivery, you are essentially monopolising that product market if delivery timing is an important factor to the consumer.

Affect on Cart Abandonment

If you’re finding your cart abandonment rates are worryingly high, check your delivery options and prices. More importantly, compare them against your competition and see where you lie in terms of competitiveness. You should know this because many of your customers will shop around, and that could be the main reason for higher levels of cart abandonment.

To find out more about cart abandonment causes, check out our other article, Ecommerce in 2020, which gives you the top three causes of cart abandonment by percentage. You’ll be pleasantly surprised because they’re a lot easier to fix than you might first think.

If you're looking for a digital agency to help you capitalise on the benefits of offering same-day delivery, or for help developing your SEO and digital marketing please contact Shaun on 01242 511912.

Or for more crucial insights read another from SOZO’s Blog:

How can Digital Marketing help your business?

The 5 Booming Ecommerce Trends 2017

App Marketing: How To Make Money From Apps (in 8 Ways)

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