We live in an on-demand society. Buying today is as easy as clicking or tapping an app on your phone and then waiting mere minutes for the service to show up right to your doorstep, whether it's food from GrubHub or rides from Uber.
And with the technology taking care of the supply side of the on-demand equation, Millennials, in particular, are more than happy to cover the demand. They've come of age using mobile applications to receive anything they want, without delay, and they expect that same convenience in all aspects of their lives.
That includes same-day shipping.
For Millennials, same-day shipping is the only kind of shipping they want. Fifty-six percent of millennials expect same-day delivery to be an option, compared to 13 percent of GenXers and 9 percent of Baby Boomers who would pay a premium for the service. These numbers align with the 2015 Pitney Bowes Holiday Shipping Survey, which found that 12 percent of our customers prefer to pay a fee for same- or two-day shipping.
Demand is one thing, but how well are retailers and shipping providers actually able to meet this expectation on a wide scale? If you're Amazon, you are investing billions of dollars in fulfillment centers to put the inventory close to your consumer and offer rapid fulfillment. What was once a pipedream is now a reality.
2016 looks poised to be the year when same-day shipping becomes the new standard. Omni-channel retailers have an advantage that Amazon does not – they have 100K stores that are close to their consumers. New crowdsourced same-day delivery companies can leverage these stores as fulfillment centers and power retailers to offer same-day delivery.
Take Deliv. The crowdsourced, same-day delivery provider has been expanding market-to-market, agreeing to partnerships with big-box retailers and malls that offer ship-from-store. As the holiday shopping season continues to pick up momentum, this time of year could be a boon for Deliv, which recently announced a partnership with Best Buy in San Francisco.
The key to the success of same-day delivery is for all the steps preceding it, from order fulfilment to inventory management, to be integrated together and function seamlessly. If a customer orders a sweater, the system needs the logic to determine, "Here's the item, here's the best place to source it from, here's where the recipient is located," and then transfer the item to a Deliv driver for final delivery.
If that occurs, and if Deliv keeps growing at this same pace, perhaps we're not far away from same-day delivery being too slow. In our on-demand society, would it be all that surprising if in five years, same-hour delivery was the norm?
Our recent addition of Deliv as a carrier partner will help shippers offer same-day delivery to their customers. Learn more about our innovative solutions in direct mail and shipping.