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Same Day Delivery and Its Challenges for Start-Ups

With the advancement of technology and the pace at which modern life is lived, consumers’ patience for waiting on goods and services to be delivered has steadily shortened. We live in an age of instant gratification, where consumers don’t so much expect as demand to be served without delay. One manifestation of this is the dawn of same day delivery, whereby customers order a product online and receive it later that day or the following day.

That would have seemed implausible only a couple of years ago, but this is the pace at which consumerism is evolving. For businesses striving to be the market leaders in their industry, same day or next day delivery is a necessity rather than a luxury.

For start-up enterprises, though, the implementation of same day delivery poses several significant challenges. The concept, while brilliant in theory, is altogether more difficult to put into practice, even for established companies such as Amazon. It requires the ability to consistently keep sufficient stock to satisfy on-demand and in-store marketplaces, something that can quickly escalate into a juggling exercise.

The cost management of same day delivery is another vital aspect which needs to be perfected. It is essential that retailers maximise efficiency in processing and delivering items to customers by implementing order minimums to work effectively within company margins. It’s a delicate balancing act, but one that a retailer needs to achieve to make same day delivery work effectively.

The third, and perhaps most pressing issue, is that of staffing. Have you got the manpower to run an on-demand and in-store operation simultaneously? Devoting too much staff to same-day orders makes it very hard to keep your physical stores going, which could lead to customer disgruntlement for those who prefer traditional shopping methods.

Check out this Infographic from 2Flow for more on the on-demand economy and how it can apply to start-up retail businesses.

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Originally posted 2017-07-07 16:32:23.

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