It’s not a coincidence that big name retailers are beefing up their web presence and online retail. From Google to Macy’s, millions are being invested into creating the omni-channels via same-day delivery necessary to make shopping online seamless for customers. The reason why is that online retail is forecasted to hit $500 billion by 2018 and certain customer age groups will have a lot to do with that the growth, particularly the millennials.
New survey findings show that the millennials have a say in driving same-day delivery to becoming a staple service among retailers. Multichannel Merchant reported that fraud prevention firm Trustev and Coldwell Banker Commercial Affiliates performed two surveys that showed that millennials want a fast shipping option. Trustev’s survey found that over 56% of consumers between the ages of 18-34 expect for retailers to offer a same-day shipping option. The age group is immersed in the use of technology and mobile devices in which they can do online shopping at the touch of a button.
With fast access, comes a greater demand to get the items just as fast. As a result, Amazon, Wal-Mart, Macy’s, Toys-R-Us, Wal-Green’s, and more have all positioned themselves to supply a variety of same-day delivery service programs. Coldwell Banker performed a similar survey that found 64% of the millennial demographic were more likely to make buy online if same-day delivery was offered.
Rurik Bradbury, CMO of Trustev, commented in the article, “They’re mostly digital natives, and the younger half grew up knowing nothing but online apps. So we can see how their worldview has shaped those expectations. At this point we’ve had e-commerce for more than 20 years, but now there are a bunch of same-day delivery providers like Deliv and Postmates, built with this group’s real-time demands in mind.”
When discussing fraud for the quick turnaround times regarding same-day delivery, Bradbury stated, “A lot of famous brands, including a large higher-end clothing retailer, have told us they dread the push from executive management to do same day because it’s not possible with their current process. The average retailer reviews 10% of its transactions, so to turn these orders around (while mitigating fraud) and not missing the one-day cutoff isn’t possible with current systems.”
What was interesting in the Trustev survey is that out of the top 50 retailers the firm researched, only Amazon and 1-800 Flowers offered same-day delivery as a standard shipping option at checkout. Trustev only researched same-day delivery in Manhattan’s 10001 zip code, the same one of Trustev’s US office. The fact of this low amount of retailers on board affirmed that the fast service, although gaining ground, is still not wide spread yet. However, when web-based retailers like Google and department store retailers like Macy’s expand frequently in major US cities, same-day delivery is going to become as popular and normal as next-day delivery.
With a same-day courier like 1-800 Courier, retailers can quickly implement same-day delivery nationwide and capture the growing market of the millennials desiring fast shipping. The San Francisco Courier has the expertise to handle the delivery side of online business as demand grows.
Reference: 9.24.15, www.multichannelmerchant.com, Mike O’Brien, Half of Millennials Want Same-Day Delivery, but Most Retailers Don’t Offer It