Same Day Delivery – is it important to online shoppers?
To nearly 24% of online buyers, the answer is “yes”.
We’ve been hearing so much about Same Day Delivery that we thought we would delve into what customers really think, need, want – and will pay for.
It depends: Products sold, Price Point & Retail Footprint are influential
Over 100,000 online buyers answered Bizrate Insights’ question on whether or not Same Day Delivery from the retailer from which they just bought was important – and nearly 24% said “yes”. Looking at the category level, you see Gifts & Flowers and Computer Software (for which purchases are often downloaded) among others driving demand. We also took a look at luxury and higher end apparel retailers with retail store locations available in many major cities and see above average demand for Same Day Delivery.
It depends: The availability of alternate choices
What online retailers also need to consider is how many customers balk or consider abandonment because same day delivery is not offered. For those customers that completed their purchase online, nearly 6% considered going elsewhere to buy for same day delivery if it wasn’t already offered (n=79,904). For those customers who abandoned at the cart or checkout, only 1.1%* did so because their order would not arrive in time for when they needed it.
Question: Please designate whether each of the following services are important to you for [this online retailer] to have available. Same day delivery; Overnight delivery; Expedited delivery (1-2 days); Flat rate shipping; Ship to a retail store; Shipping club. Answers: Yes; No. Question: What categories of products did you just purchase from [this online retailer]? n=91,076, collected April 15, 2013 – June 30, 2013.
Question: Did you consider not purchasing today because [this online retailer] doesn’t offer these options? Same day delivery; Overnight delivery; Expedited delivery (1-2 days); Flat rate shipping; Ship to a retail store; Shipping club. Answers: Yes; No. Removed answer: This retailer already offers this. Question: What categories of products did you just purchase from [this online retailer]? n=81,764, collected April 15, 2013 – June 30, 2013
* Question: What is the primary reason that you didn’t purchase the item(s) in [this online retailer’s] shopping cart today? What is the primary reason that you didn’t complete checkout today? Answer: Order would not arrive in time n=17,168, collection January 1 – August 31, 2013
Other Considerations: Order arrival timing vs. Delivery Costs
Once you get past the importance of the Same Day Delivery option and customers’ consideration of abandonment, you are left facing the question of cost. Both the high cost of Same Day Delivery and which is more important to online buyers – cost or order arrival date – factor into demand. Overwhelmingly, of the nearly 130,000 online buyers we asked, most are more concerned with costs!
What are online buyers willing to pay for same day delivery? And what do they expect to pay? Most customers expect to pay more ($27.01 on average) than they would like to spend ($21.56 on average).
Question: Which of the following is most important to you when ordering online? Answers: Delivery timing; Delivery cost. n=134,646, collected April 15, 2013 – June 30, 2013.
Question: For orders containing items similar to what you bought today, what is the average shipping fee and what is the maximum amount you would pay for each service listed? Same day delivery. Average feen=42,007, Maximum fee n=52,580 collected April 15, 2013 – June 30, 2013.
The Bottom Line
From what we see thus far, customers want Same Day Delivery, but at this point in time it is a too expensive, nice-to-have option rather than a requirement to win their business. Unless, of course, you are sending flowers at the last minute!
Do you need more information on Same Day Delivery? Just ask us for it! firstname.lastname@example.org
ABOUT: Bizrate Insights works with over 6,000 online retailers worldwide to offer free comprehensive Consumer Insights and Seller Ratings surveys to verified online buyers immediately after purchase and after their order should have been received. Bizrate Insights also provides online retailers with a free Site Abandonment survey to help identify reasons for abandonment and actions to recapture sales.