Same Day Delivery – A reality check

A recent BCG report provides great insights into whether same day delivery help ecommerce players leapfrog its competitors. In summary, the article says that there are more significant online purchase decision drivers above the need for same day delivery. The overall report highlights can be gathered from the below charts

Same-Day-Delivery-Ex1_lg_tcm80-130887

Customer demand is limited. Only 2% of online purchasers will be willing to pay for expedited services. However, the fact that online retailers provide the option of expedited service such as same day deliver augurs well for the retailer’s brand. The same-day delivery is expected to generate between $425 million and $850 million in delivery fee income in 2013. So, its a significant revenue pool.

Carriers should not ignore other ways to add value
Same-Day-Delivery-Ex5_med_tcm80-130885

And while the firm suggests retailers and carriers to tread the same day delivery model cautiously without providing a clear recommendation, firms such as eBay are being aggressive in extending the purview of their same day delivery services. This NYTIMES article encapsulates what the various retailers are doing . Click here

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