Incumbent omnichannel players are exploring new initiatives to compete with same-day delivery speeds.
Consumers worldwide expect online delivery speed and costs from e-commerce market leaders. Taking advantage of their capabilities and resources to build a competitive advantage by understanding delivery speed and costs. How can store-based retailers and direct-to-consumer brands compete with free same-day delivery as the benchmark?
Since the early 2000s, e-commerce has become an important business success story. Shipping durations have decreased as online sales have increased. Several factors influence consumer value today, but logistics play a significant role. A brick-and-mortar presence can help retailers deliver products faster and conveniently handle returns. To capture the growing consumer market, same-day delivery is being pushed into the mass market by e-commerce super giants.
It's simple but challenging: same-day delivery requires a dense network of warehouses. If a company wants to cover all tier 1 and tier 2 cities in Germany, it would need 11 strategically placed warehouses with the same assortment and the ability to deliver it in two hours or less from click-to-ship.
Consumer behaviour has significantly molded through these deliveries; these e-commerce giants are taking that edge on the omnichannel competition.