In order to be successful, a same day courier & delivery service needs a critical mass of consumers and substantial financial resources. For example, in a large metropolitan area, where there are many consumers, a high level of e-commerce adoption is necessary. Then, the market must have a high level of consumer demand for the same day service. By 2020, the share of online retail sales is expected to almost double, rising to 11 percent.
While many conventional B2B city couriers can offer same-day delivery, these are generally too small to be an appropriate partner for most retailers. So, technology start-ups have created flexible, local courier networks that allow retailers to offer same-day delivery. A single order placed on such a platform is dynamically assigned to available capacity. Within a few hours, a courier picks up the order. This process reduces distribution costs and increases profits.
In terms of the economics of same-day delivery, the number of shipments that are delivered on a daily basis determines the profitability of same-day services. A higher number of shipments will lower the variable cost per unit, enabling the same-day delivery service to become profitable. In a single city, a retail fleet that operates only during normal business hours cannot reach scale, but parcel networks that operate overnight and during the evening waves will be able to consolidate multiple retailers’ shipments.
The economics of same-day delivery are determined by the number of shipments in a city or day. As more shipments are made, the cost of operating a fleet decreases. Hence, single retailers cannot reach a certain scale within a city. Instead, they need to find a parcel network that can consolidate multiple retailers’ shipments in one day. This will help them achieve profitability. This will make same-day delivery more attractive for both businesses.
The economics of same-day delivery depends on the amount of consolidated shipments. The more shipments in a city, the lower the variable cost per unit. The economics of same-day delivery also depends on the amount of consolidation between the retailers. More retailers consolidated in one city will be able to compete more favorably with the same day courier & delivery service. However, the higher the volume of a single city, the more expensive it will be.
In the United States, 60% of consumers would pay more if a company provided same-day delivery. It is estimated that a same-day delivery service can save up to 50% in shipping costs. Regardless of whether you are shipping an item from overseas, a same-day courier & delivery service can help you reach your customers within the day. The same-day delivery option is ideal for a wide variety of businesses.
Same day courier & delivery service can improve the experience of online shopping. It can improve a customer’s experience when buying products from an online store. In addition, same day delivery can be a valuable asset for retailers. Moreover, it gives them more time to prepare the products. A specialized e-tailer can offer a wider range of products, which means that it will be easier to choose the right product. This makes the whole process of buying products from a store much easier.
The same day courier & delivery service can save you a lot of money when compared to traditional shipping methods. In addition, it is more convenient. By using the same-day courier service, a person does not have to wait for a long time for their items to reach their destination. By using this same-day service, a person can have their packages in less than a day. This type of service will save the consumer a lot of money.
For companies that offer same-day courier & delivery, it is important to consider the cut-off time. Next-day delivery has a much longer cut-off time. Typically, companies can use this service until the end of their working days (around 5pm). But same-day delivery has a cut-off time at noon. By using same-day courier & delivery, a person will have their goods on hand in a matter of hours.