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We know the answer to this one! Easy! Same day means delivery on the same day the item was sent, and next day means delivery the day after. Sorted…next question please!

In reality, there is a bigger difference between the two than the terminology, and this difference lies in the offering available to the end customer who is thinking of purchasing your products or services. Offering either / or service can have an impact on your brand and how it is perceived, especially in our era of instant gratification where items are available at the touch of a button and convenience wins over price a lot of the time. Not offering a service such as next or same day delivery can lose sales, and as of 2018, 15% of global retailers now offer same day as standard. This of course means a staggering 85% don’t, making same day delivery an area to capitalise on now, rather than later.

The Risks of Same Day Delivery

That said, offering such a service does come with its risks and associated premiums, such as:

  • Higher risk of failure and delays – there is more than can go wrong when you’re guaranteeing a same day delivery, which increases the risk of impacting your reputation to get items delivered when you say they will be.
  • Perishing of time sensitive items – if you’re sending something that has to be delivered within a set time period or it will perish (such as foodstuffs or medicines) then any delay can cause problems with the product, impacting customer service and reputation. At the very least new items would need to be sent at no cost to the customer.
  • Higher courier cost – the cost of delivering same day is often passed down to the customer
  • Inventory problems – things may go in and out of stock extremely quickly, so if you’re selling products you need a robust inventory system to keep track properly.

These reasons and others are why same day delivery is nearly always priced higher than next day, as convenience has its price which is then passed down the line, ending finally to the consumer. This can then be off-putting and make even the most impatient of shopper revert back to the next day option, so offering both with clear pricing gives a good catchall solution.

Fair Pricing for the Market

If you’re considering working with a courier to offer same day delivery, it’s important to look at the costs – both to you as a business, and the costs you then pass onto your customers or clients.

  • What sort of profit is there in offering same day delivery vs next day?
  • Is it worth the extra risk?
  • Will you then need to offer a next day or same day returns service, and at what cost?
  • What do your competitors charge for the same services? It’s important not to price yourself out of the market, but at the same time, you don’t want to make a loss on it.
  • Is it worth offering a premium package for returning customers to get same day or next day at a reduced price, to ensure repeat business?

Same Day Delivery Facts

Just a few facts about same day delivery that may help you may the decision about what to offer:

  • 88% of customers would happily pay extra if they got their items same day; the biggest proportion of this was the Millennial generation, of which 64% said they would be more likely to make an online purchase if same day delivery was an option.
  • 71% of customers are more likely to give a positive recommendation or review if they can get their items same day and the transaction goes to plan
  • 49% of shoppers are more inclined to make a purchase if they can get same day delivery
  • Around 25% of online shoppers would abandon their basket if they couldn’t get same day delivery as an option.
  • Out of this 25%, 41% were buying perishable items such as food and flowers.

Only you can make the decision whether to offer this service but if you do, be sure to research the proposition thoroughly and carefully assess any risks – will they outweigh the benefits, or are you missing a huge gap in the market by not offering speedy delivery as a service?

Further reading: Is Same Day Delivery Really Worth It?