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BizReport : Ecommerce archives : December 11, 2017

Consumer delivery demands call for new models

Just how important is delivery speed to online shoppers? Research from both sides of the Atlantic reveals it's very important - more important than cost in some cases - and how speed of delivery is leading many companies to look at crowdsourcing.

by Helen Leggatt

Recent research in the UK from Sorted reveals that more than half of consumers (55%) say speed of delivery is the most important factor when shopping online and 39% believe they should not have to wait more than 24 hours for a delivery. Three in 10 (32%) want retailers to offer an 'ultra-express' service that takes less than 2 hours.

Perhaps the most demanding consumers are those of Gen Y and Gen Z. According to a survey conducted by American Express in the U.S. (.pdf), same-day delivery was the top capability that would keep these age groups loyal to a brand, product or service (57% Gen Y / 56% Gen Z). One of the hallmarks of Gen Z is that they are accustomed to instant gratification, facilitated by their lifelong instant access to information.

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It's little wonder, then, that retailers are looking for new technologies and models to meet consumers' growing demand for fast delivery. One model gaining popularity is crowdsourced delivery - such as Deliv or Postmates - which leverages part-time individuals to swifty move deliveries during the crucial last mile to customers' doorsteps. As well as satisfying the demands of today's shoppers, companies may also save on vehicle maintenance, warehouses, regular salaries and benefits.

Costco recently launched its same day grocery delivery option, which uses crowdsourced delivery company Instacart, allowing same day delivery at nearly 400 of its U.S. locations. More than 4,000 retailers, including Bloomingdale's, Best Buy, Fry's Electronics, FreshDirect, Giant Eagle, Macy's, Office Depot, PetSmart, The Home Depot, and Walmart, use Deliv for their same day delivery options in up to 35 markets and 1,400 cities nationwide.

Tags: crowdsourcing, delivery, ecommerce, logistics, trends

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