The Biggest Same-Day Delivery Challenges for eCommerce Retailers

Customer expectations keep evolving, and same-day delivery is now a must-have in the world of eCommerce. While it used to be expected mainly for essentials like groceries, shoppers now want same day delivery for all kinds of online orders.

eCommerce businesses can boost sales and grow their brand by meeting this growing demand for same day delivery. However, without proper planning, it can become expensive and eat into profits. It’s also important to streamline order processing to ensure fast and efficient fulfillment.

The good news? With smart planning and the right strategies, businesses can offer same day delivery, keep customers happy, and still maintain healthy profit margins.

What Is Same-Day Delivery?

Same-day delivery is a fast service that gets an order to the customer on the same day it is placed, usually within hours.

The time window for same-day delivery ranges between 30 mins to midnight (same day the order was placed). 30 to 60 mins deliveries are also referred to as hyper local deliveries, which is an offshoot of same-day delivery. This is a key part of on-demand delivery, meeting customer expectations for speed and convenience.

Logistics Fact: Statista projects that the global market for same-day delivery will grow to $26.4 billion by 2027.

Why Is Demand for Same-Day Deliveries Increasing?

The demand for same-day delivery is increasing due to several factors, explained below:

Customer Expectations

As online shopping becomes more popular, customers now expect faster delivery options to match their busy lifestyles.

Convenience

Same-day delivery provides the convenience of receiving products quickly without visiting physical stores, making it ideal for urgent needs. This makes sense for a vast population with a busy corporate lifestyle.

Reduced Abandoned Shopping Carts

Faster delivery options can encourage customers to complete their purchases instead of leaving items in their shopping carts.

Competition Among Retailers

More businesses are offering same-day delivery to stay competitive with large eCommerce players that already set high delivery standards.

Technology Advancements

Better logistics, tracking, and fulfillment technologies make it easier for businesses to offer fast and reliable delivery services.

These factors continue driving the growing demand for on-demand delivery services across various industries.

Benefits of Same-Day Logistics

Offering same-day delivery provides several key benefits for eCommerce brands, especially as customer demand for fast shipping continues to rise. It can help drive more sales, as customers are more likely to complete a purchase when they know they will receive their order quickly. Same-day delivery also reduces shopping cart abandonment, a common issue in online shopping. Brands that offer this service stay competitive with major players like Amazon, meeting the growing expectations for fast, reliable delivery. It also increases customer satisfaction and helps build loyalty, as shoppers appreciate businesses that prioritize convenience. Over time, these factors enhance the brand’s credibility and reputation in the market.

5 Major Same-Day Delivery Challenges

Here are 5 key challenges of same-day delivery, and ways how to tackle them effectively:

1. Distant Warehouse Locations

When eCommerce warehouses are located far from customers, delivery takes longer because orders need to travel greater distances. This makes offering same-day delivery more difficult.

Solution

Splitting inventory across multiple warehouses helps reduce the distance orders travel, cutting down transit times. Storing inventory closer to customers enables businesses to use local or regional shipping instead of relying on national shipping, which speeds up the delivery process.

2. High Operational Costs 

Splitting inventory across multiple warehouses helps speed up deliveries and lower costs, but it can also lead to higher expenses. Renting or leasing multiple warehouses and maintaining inventory in each location can be costly. Businesses may also need extra staff or resources to ensure same-day delivery.

In many cases, customers expect same-day delivery without wanting to pay extra for it, meaning businesses must absorb the entire shipping cost. This can reduce profit margins significantly.

Solution

Instead of managing multiple warehouses on your own, partnering with expert third-party logistics (3PL) providers can be a more cost-effective option. 

3. Incorrect Order Allocation

Even if inventory is spread across multiple fulfillment centers, same-day delivery can fail if orders are not sent to the center closest to the customer. This misallocation increases transit time and delays delivery.

Solution

Businesses can either manually assign orders to the nearest fulfillment center or use an automated system for faster, more accurate order allocation.

For example, Mile uses intelligent order routing to automatically send orders to the fulfillment center closest to the customer’s location, ensuring faster and more reliable same-day delivery.

4. Inefficiencies in Last-Mile Delivery

Last-mile delivery is the final step of getting an order from the warehouse to the customer’s location. Since courier services handle this part, businesses often lose control and visibility, leading to delays, lost shipments, or failed delivery attempts.

Solution

To reduce these issues, businesses should partner with multiple reliable couriers and use automated dispatch software to allocate orders efficiently. Route optimization is also essential for ensuring faster and more efficient deliveries. Offering last-mile tracking and scheduled delivery options gives customers more control over their orders and helps reduce shopping cart abandonment.

For example, Mile partners with multiple courier services and uses real-time tracking to provide full visibility for both businesses and customers. In case of any delivery attempt or shipping exception, Mile sends proactive notifications so immediate action can be taken.

5. Lack of Focus on Customer Experience 

Providing an exceptional customer experience helps eCommerce brands stand out and increase sales. In fact, many customers make purchasing decisions based solely on their experience. However, the rush to offer same-day delivery may cause businesses to overlook key elements like custom packaging and order tracking, which are important for customer satisfaction.

Solution

Businesses can enhance the shopping experience with a memorable unboxing experience through custom packaging. Offering real-time tracking and delivery notifications also improves transparency and reduces customer anxiety.

Mile prioritizes a high-quality customer experience by enabling custom packaging options, real-time order tracking, and order notifications via email and SMS. Mile also ensures seamless returns to keep customers happy and loyal.

Takeaways

Same-day delivery is now a standard in online shopping, and businesses that excel in it can gain a competitive edge. Using effective strategies and proper planning allows eCommerce brands to offer same-day delivery efficiently and profitably, leading to increased sales over time. Offering real-time order tracking and an enhanced post-purchase experience is essential, and Mile helps businesses achieve these goals with ease.