Recapture 10%-25% of Retail Revenue Using Local Delivery
The pandemic changed the way we live, work, and shop among other things. 73% of individuals said they were shopping more online in 2020 than they did before. (Source). Of those, 88% anticipate they will continue this “trend” into the coming years. This convenience has been ingrained into the consumer and has now become a way of life. Of those surveyed, 67% of consumers said they shopped online for clothing, 60% for household items, 56% for groceries, 51% for cleaning supplies, and 49% for electronics. (Source).
Along with the increased demand came higher expectations from consumers including faster delivery. If retailers don’t meet these expectations, then they could see decreased revenue results. Conversely, providing fast delivery could help increase your revenue by 10-25 percent.
Retail E-Commerce Stats
Between 2020 and 2024 it’s expected that e-commerce will increase from 18% to 21.4% worldwide. In 2020 in the US, 21.3% of retail sales happened online, equating to $861.12 billion. A year-over-year increase of 44%! (Source) Yes, 2021 may not be as high, but 58% of consumers shop online weekly and 43% say they would be fine if they never shopped in a brick-and-mortar store. 56% of GenXers and 55% of Millennials prefer online formats to physical stores. (Source)
As we can see e-commerce is growing and will continue to grow primarily due to the convenience of being able to shop without leaving home. An important part of online shopping, compared to in-store, is the delivery, shipping, or curbside pickup experience.
The average cart abandonment rate is 69.82%. (Source) There are many reasons individual consumers abandon carts including, item price, availability of the items, and yes speed of delivery. The delivery date is an important part of online shopping, as 22% of shoppers indicated that they have abandoned the cart due to slow delivery speeds. (Source) Therefore, having options for fast delivery is a quick win for retailers. What would gaining even 10% of your abandon cart stats do for your bottom line?
What is fast?
Fast means different things to different people in different situations. Sometimes fast is less than 5 days, sometimes 2-3 days, next day, same-day, or even within 2-3 hours. Consumers were asked how long they would be willing to wait for a purchase. 29% said 4-5 days, 14% said 2-3 days (The Amazon effect), and 5% said Next day. (Source) Though those numbers are when there is no urgency, there are situations where consumers need their items faster.
When asked what consumers considered “Fast” 97% said same day shipping and 95% said next day shipping. While 50% of retailers provide same-day shipping, 75% of consumers want same-day shipping. (Source) So a 25% discrepancy on speed between retailer and what consumers expect. Are you shipping same day…If not even delivering same day?
62% of consumers say delivery speed influences their final purchase decision. Of these 30% expect same-day delivery and 85% would go elsewhere when delivery speeds are not up to expectations. Therefore, consumers turn to Amazon 58% of the time for their same-day delivery needs. (Source)
Consumers these days are time-crunched and cost-conscious when it comes to shopping. Convenience is key and getting your product into the hands of your customers faster can keep them from going elsewhere. So are consumers willing to pay for faster delivery?
82% of consumers have added items to their carts just to get free shipping. (Source) 41% of consumers that need their item are willing to pay a charge for same-day delivery and 24% of those would pay for delivery within a 1-2 hour window. (Source)
So combining a same-day delivery offer with a minimum purchase is an option to get higher cart value which can help offset the delivery costs and not lose a customer to a competitor when they need fast delivery. Or just let the consumer pay for the convenience. Just give them the option for when they need. Don’t risk another abandoned cart.
Amazon has changed the online shopping and delivery game and other major retailers are jumping on the bandwagon to provide same-day delivery. 48% of consumers have admitted to paying more for an item on Amazon if it arrives faster. 58% of Amazon Prime Same-day users increase their cart size to get the same-day delivery. (Source)
Don’t let Amazon and other retailers steal your customers when you can do something about it with no cost and very minimal effort.
The Bottom Line
Consumers are purchasing online, want fast delivery, and are willing to buy more or pay for same-day delivery. If you can offer this without any effort, cost, or headache, then why not use same-day delivery to win back some of your abandoned cart purchases?
The year 2020 trained consumers to expect options for how and when they receive their purchase. Same-day delivery is not a luxury anymore it’s a necessity for retailers to offer the option. ZipSendr can help decrease your cart abandonment, simplify the delivery process and increase your revenue in a short period of time. Why not give your customers the option?