Amazon Prime has altered consumer expectations for shipping, making it difficult for retailers to compete. But the same-day delivery space offers them an opportunity to catch up, according to L2’s Third-Party Fulfillment report.
When it comes to same-day delivery, Amazon has not yet established the clear market leader role that it has with two-day shipping: its Prime Now service is only available in 27 metro areas. By partnering with startups such as Postmates, Deliv, and UberRush, retailers could feasibly get ahead of the e-commerce behemoth.
For retailers preferring to fulfill their own orders, the urgent nature of same-day orders provides additional leeway in pricing. While consumers may be reluctant to shell out a fee for two-day shipping, they would pay up to $5 to upgrade to same-day delivery, according to L2’s study. As many as 40% of shoppers would take advantage of same-day fulfillment if they couldn’t get to a store. However, less than a fifth of retailers offer same-day delivery services, and those that do charge an average $10 – double the cost consumers would be willing to pay. Partnering with startups could be a first step towards a head start in same-day fulfillment.