In light of how Amazon is making several expansions to its’ free Same-Day Delivery program, retailers are going to jump on board with the service in order to keep pace. Best Buy saw this is what had to be done, and last year, it began a long-term plan to implement same-day delivery with rolling out service tests in San Francisco and its’ surrounding areas, in addition to Washington DC and New York. Now the testing phase is out of the way in that area, BestBuy’s latest announcement makes a bold statement that it is ready to test same-day delivery even more and eventually take on Amazon.
Forbes.com recently reported that Best Buy has announced that it is expanding its’ testing of same-day delivery to 13 major metropolitan markets nationwide. The article stated per Best Buy, the same day delivery initiative is part of its’ ongoing commitment to improve the in-store and online shopping experience. There is a heavier focus on online initiatives, as same-day delivery adds a level of convenience that a segment of customers are demanding that have become comfortable with online shopping. It is also becoming more and more attractive for retailers to use the service as a way to drive traffic to their sites, as well as increase physical store traffic.
The electronic retailer has teamed up with start-up delivery company Deliv to handle the actual deliveries. Deliv’s service is based on a crowdsourcing approach to pick up and deliver online purchases directly from BestBuy stores; they act as warehouses for Deliv to quickly fulfill online orders. BestBuy has over 400 stores in a variety of major US cities nationwide, which positions the retailer distance-wise to provide same-day delivery on a mass scale. With 13 metropolitan city markets to begin with, more than likely, there will be plenty more to come, especially during the holiday season.
Amazon isn’t the only driver behind Best Buy’s pursuit to increase revenue. Forbes stated that consumer electronics has the highest online sales percentage in US retail. According the eMarketer, computer and consumer electronics revenue from online retail sales in the US will exceed $85 billion this year. It will also grow to over $100 billion in 2018, making it the maximum revenue generated by any US retail product category. These figures will result in seeing more same-day delivery from Best Buy, being that it is the largest consumer electronics retailer in the US.
Trends are favoring that same-day delivery is going to continue to play a huge role in online retail. Not only is Best Buy and Amazon engaged in last-mile deliveries, Google, Macy’s, Nordstrom’s, Whole Foods, and more are also. A Same-Day Courier like 1-800 Courier is a viable partner for any retailer seeking to stay current with e-commerce and increase online sales. The Washington DC Courier has a nationwide footprint and can help big companies like Best Buy thrive with same-day delivery.
Reference: 4.13.16, www.forbes.com, Trefis Team, Same Day Delivery: Best Buy’s Plan to Take On Amazon?