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Do Customers Really Care About: Lightning-Speed Delivery?

Reading Time: 3 mins
By Published On: September 18, 20190 Comments

Same-day delivery, drones and everything in between - retailers are pushing the fastest delivery possible. While it's great for customers, do they actually want it? Will they embrace drone delivery and same-day, or is it being forced upon them?

According to the Power Retail Spotlight Series report Last-Mile Delivery, 95 per cent of online shoppers want free delivery, while 89 per cent of them prefer speedy delivery.

“In a world of instant gratification, we want everything now. I am no different; I prefer same-day delivery with all my online purchases. I am willing to pay up to 20per cent of the cost of the goods I am buying. Anything more than that is not worth it. However, it also depends on the occasion, if it’s a product I need, then I am willing to pay up to 30 per cent of product/purchase price. If it’s a book, I’m willing to wait up to two days. If it’s clothing, makeup or perfume I pretty much want it now,” said Judy Sahay from Crowd Media.

While customers have become accustomed to the fast delivery from online retailers, it may seem like they’ve been conditioned to think that it’s the only possible outcome. Is this an issue? Well, it depends. According to the Spotlight Series report, 23 per cent of online shoppers are willing to pay up to $20 extra in postage for delivery under three hours. But a whopping 66 per cent are prepared to pay nothing for five-day shipping.

There is significant competition amongst retailers regarding the speed of delivery, with 71 per cent of multichannel retailers keeping up with competitive delivery prices. “Online consumers have been trained by the likes of Amazon to expect free and fast delivery and if you don’t provide that your customers will eventually go elsewhere,” said Dean Taylor, the Founder of Wine Depot.

So, What Does This Mean?

While customers love the thought of faster delivery, it’s something that they’re conditioned by retailers to expect. According to the Power Retail report, “Clearly, pureplay retailers have focused their efforts on shorter delivery times. Same-day delivery is offered by 20 per cent of pureplay retailers in the Top 100, but only by 11 per cent of the multichannel retailers. Click & Collect from stores is, however the domain of multichannel retailers, but pureplay retailers dominate Click & Collect from lockers.”

“The pressures on online retailers to improve their delivery options and operations differ greatly between pureplay and multichannel retailers. Multichannel retailers are still focused on their traditional competitors (other multichannel retailers and store-based retailers). This begs the question of whether these multichannel retailers may get so caught up in direct competition that they get left behind by pureplay retailers who have delivery optimisation as a key priority,” says  Mark Fletcher, the Insights Analyst at Power Retail.

Australian shoppers may love the idea of same-day or drone delivery, but many realise that it’s not always feasible. Australian shoppers view three to six days as the typical or standard delivery time offered by online retailers, and the willingness to pay for faster delivery is connected to the amount of time saved but varies significantly depending on demographic and other factors.

So, do online shoppers actually want lightning speed delivery? Yes, in some cases – but don’t put too much pressure on yourself and stop focussing on other aspects of retail. Maintaining excellent customer service, transparency and superior CX is the best way to a customer’s heart.

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About the Author: Power Retail

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