E-commerce in India has been on an upward growth trajectory, thanks to technological integration, the proliferation of the internet, and the rapid adoption of smart devices. As a result, customers are heavily exposed to countless choices and quick purchasing options, leading to changes in their needs and preferences. The new age of consumers demands rapid satisfaction, which has led to the emergence of the ‘now’ economy, making on-time delivery a key factor in defining the future of several e-commerce companies.
In a bid to thrive in the competitive market, companies are roping in technology-led logistics solutions providers who are enabling last-mile deliveries, omnichannel support, and even same-day deliveries. Let us delve into how same-day delivery is impacting e-commerce, especially during the holiday season.
Enhancing festive cheer with same-day delivery
The convenience of online shopping and the lure of exclusive deals play a critical role in shifting consumer behaviour, especially during the festive season. As a result, e-commerce businesses tend to experience a surge in consumer spending on their platforms. Redseer Strategy Consultants stated in a report that e-commerce retailers are anticipating sales worth Rs 90,000 crores this festive season, which is 18 to 20 per cent higher than the previous year. Therefore, in a bid to gain customer trust and maintain their edge in the market, e-commerce companies are leveraging same-day delivery.
As the name implies, same-day deliveries involve delivering goods to consumers on the same day on which the order was placed. This lightning-fast delivery is made possible via shipping aggregators who have strategically placed warehouses and micro-fulfilment spaces in areas densely concentrated with target customers. It provides online customers with convenience and a sense of gratification when they receive their items on the same day, especially during the festive season. For e-commerce businesses, providing this provision offers a competitive advantage as it increases customer satisfaction and reduces the chances of cart abandonment.
A competitive edge
The e-commerce landscape is dynamic as well as highly competitive, where a myriad of firms are targeting the same customers. Therefore, it has become paramount for them to be unique and differentiate themselves from the crowd, especially when the festive season is around the corner. One way it can be done is by offering same-day delivery. This delivery type amalgamates the convenience of online shopping with the immediate access to a product from a brick-and-mortar store, giving businesses a competitive edge.
Reduction in cart abandonment
According to a report titled “Beyond E-commerce 3.0” by Kalaari Capital, the cart abandonment rate in India is 51%. One of the reasons behind this abandonment is the long delivery times. According to a McKinsey & Company report, deliveries have an impact on shoppers’ decisions, with some opting to cancel carts because of forgotten or extended delivery timeframes. For this reason, a lot of customers decided to return to retailers. Therefore, e-commerce companies that want to go omnichannel will need to use a variety of resources to give their customers easy access to their products. This is where same-day delivery can help e-commerce businesses reduce this number, as it tends to enhance customer satisfaction.
Surge in sales
The ease with which customers can take advantage of same-day delivery is increasing due to advancements in technology and the innovative solutions provided by the logistics partners. Therefore, to give their customers the option of on-demand services with only a few clicks, a growing number of e-commerce companies are now collaborating with last-mile solution providers.
Customers tend to purchase more when they know they will receive their products the same day when they choose same-day delivery. Otherwise, the lengthy delivery times might discourage people from placing orders. Faster shipment appears to be driving conversion, as ‘same day’ sponsored search ad growth has increased online conversion by five times, resulting in higher sales, according to a report by Adthena.
All things considered
Competitiveness in the e-commerce landscape will continue to rise, making faster deliveries a critical part of the supply chain. It has forced businesses to adopt new strategies, technologies, and delivery methods that would aid them in enhancing the customer experience, soaring sales, and reducing cart abandonment rates. This is where same-day delivery can help businesses cater to the needs of their customers with efficacy. However, in the festive season, when customers are on an online shopping spree, it is likely for e-commerce businesses to face challenges related to delivery.
In a bid to stay ahead of the curve and reduce operational hassles, having a logistics partner has become paramount. Apart from providing exceptional service of same-day delivery, these technology-powered firms provide automated and AI-driven offerings that help e-commerce businesses cater to their client’s needs. Therefore, it is safe to say that the future of same-day delivery is promising and will be further enhanced by technology and customer demand. Businesses that want to stay ahead might have to change their approach as same-day delivery moves from a ‘nice to have’ to a ‘must have’ option.
By Yash Jain
https://www.financialexpress.com/business/industry-the-now-economy-same-day-delivery-and-its-impact-on-festive-e-commerce-3309610/
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