If you’re a retailer pursuing to catch up with Amazon, you won’t do it be doing the same thing regarding shipping options. The e-retail giant has strategic order fulfillment centers placed throughout the US, coupled with an efficient logistics delivery system. Two-day shipping is becoming the new standard for online retail and big companies are seeking to reach this fast delivery threshold.
Internet Retailer recently discussed what 30 top e-retailers are doing to get their online products shipped faster. Its newly released “Click, Ship & Return: Fulfillment Report” study showed how they have all made delivery time improvements within the last three years. The report tracked KPI’s including shipping speed, returns, and order processing times, and the average delivery time was four days. This is a double the time frame that Amazon daily provides, yet it’s a step in the right direction, especially when traditional logistics may have been in place for so long.
The study mentioned who the retailers were and showed specifically their current shipping day numbers. Nordstrom, Wal-Mart and Newegg Inc. lowered their delivery times by two days within two years. J.C. Penney Co. landed most improved by cutting its’ delivery time to 5.1 days in April 2016, compared to 9.7 days in April of 2014. Best Buy cut its delivery time by 3.5 days, equating to 3.3 in April 2016, versus 6.8 days two years ago. The electronics giant stated that faster shipping times attributed to its 24% web sales growth in this year’s 2nd quarter. When implemented effectively, a good delivery system will attract online shoppers, and if you supply the right service, you’ll keep them coming back.
The article mentioned some adjustments the study found that retailers have made to get their delivery times down. E-commerce analytics company Slice Intelligence found one way they decreased shipping time frames were due to building more distribution centers to fulfill online orders. These facilities then store merchandise near heavily populated areas to create the fast turnaround times. The closer radius results in easier delivery routes and higher production as well. This is contrary to traditional distribution and warehousing, which utilized less fulfillment centers instead.
This type of model is what has enabled Amazon to not only consistently provide two-day shipping, but the e-retail leader has taken the bar higher with Same-Day Delivery. Prime members have the option of receiving two-day and free same-day services via Prime Now. Amazon has now expanded its’ free same-day delivery to 27 major US city markets, including San Francisco Bay Area, Philadelphia, Seattle, San Diego, New York, Dallas-Fort Worth, Phoenix, Indianapolis, Baltimore, Washington DC, Atlanta, Orlando, Chicago, Richmond, and more.
Same-day delivery is becoming more in demand as online retailer evolves, as retailers seek the omnichannels that connect between the web and physical stores. With sourcing online order fulfillment from brick-and-mortar locations, shipping faster can be made easy with a Same-Day Courier like 1-800 Courier delivering for you. The Los Angeles Courier has a national footprint and can create an optimal same-day delivery program for the largest of retailers.
Reference: 9.9.16, www.internetretailer.com, Kat Fay, Top e-retailers deliver the goods faster