A new survey from Standvast Fulfillment and Supply Chain Dive’s studioID showed that 94% of supply chain execs are facing shrinking delivery windows, and those windows are generally two days or less. Some customers are willing to wait an extra day or two for big and bulky items like household appliances, exercise equipment and furniture, but for the most part, they’ve come to expect their orders same-day, next-day or at the very most, within two days.
Other key findings from the new report include:
- Fast delivery results in a substantial increase in sales conversions. Respondents reported a 47% median uplift in conversions driven by standard two-day delivery offerings.
- Selling via marketplaces is getting expensive. The costs of doing business through online marketplaces have risen significantly over the last two years, with 93% of respondents reporting increases of anywhere from 5% to 20% or more.
- Customers want their stuff faster than ever. Over the past 12 months, customer expectations have notably shifted, with an increasing demand for fast delivery within one or two days. More than half of customers expect two days or less as a delivery option when placing orders.
- The pressures are mounting. Nearly all supply chain executives surveyed (91%) say fast delivery expectations as a whole have increased over the last 12 months. When asked, respondents believe “fast delivery” means next-day (35%), two-day (35%) or same-day service (26%).
- Logistics providers help companies meet and exceed customer expectations. Most companies (59%) are already working with a logistics provider to help boost their on-time delivery ratings for ultrafast shipments, while 31% are currently seeking a logistics provider to help for this specific reason.
According to the survey, 95% of companies focused on sales and conversion rates view fast delivery speeds as either extremely or very important tools for closing deals. The same percent of companies consider fast delivery a critical factor in their revenue and customer growth strategies.
“Overwhelmingly, companies are saying you can double your sales conversions if you offer deliveries within a two-day window,” said Cayce Roy, CEO at Standvast Fulfillment Services. “Companies that don’t recognize and react to this now will lose market share.”
By prioritizing fast and reliable delivery and by working with logistics providers that have established multi-node networks, organizations can meet the expectations of today’s demanding consumers and secure strong positions in the marketplace. Those who ignore the trends and continue to absorb high delivery costs and double-digit marketplace fee increases will wind up with unsustainable total landed costs on every order.
“For any retailer right now, fast delivery is table stakes that’s not going away,” John Appert, Standvast’s CSCO, points out. “In fact, it’s only going to increase as consumer shopping tools and platforms improve. The e-commerce space is incredibly competitive, and if your company isn’t focused on speed, it’s going to lose customers to someone who is.”
