Competing to Win in the Heated Same-Day Delivery Race
By: eBay Inc. Staff
In today’s fast-paced digital economy, customers don’t want to wait for days to receive items they’ve purchased online. They want to order via any connected device and have their products delivered to them wherever they are within hours, not days.
The Boston Consulting Group (BCG) recently conducted a survey of 1,500 U.S. consumers that found that “affluent millenials,” or consumers between 18 and 34 with household incomes above $150,000 living in urban areas, are willing to pay up to $10 to have items they order online delivered on the same day.
This consumer trend is giving rise to a radical shift in commerce, as a number of commerce leaders tone their same-day delivery muscles.
Competition is heating up, with eBay, Amazon and Google vying to claim market share in this lucrative segment. Google recently launched a same-day delivery pilot test called Google Shopping Express in San Francisco, and Amazon’s Local Express Delivery Option serves 10 markets. Amazon has also been pursuing more local fulfillment centers to facilitate same-day delivery. Meanwhile, Walmart has launched a same-day service called Walmart to Go, and numerous available markets for it can be found here.
eBay Inc. is rapidly expanding its eBay Now same-day delivery service following its pilot tests in San Francisco, New York and San Jose. The service is now available in Dallas and Chicago.
“We have some good relationships with retailers,“David Ramadge, eBay's Head of Local Business Development told Mashable in a recent story on eBay Now. “We’re really trying to partner with them to try and offer a service that they perhaps couldn't solve on their own.”
Ramadge also noted that because eBay Now is available in San Jose, where eBay Inc. is headquartered, the company’s own employees are using the service and providing feedback.
Meanwhile, analysts with the Boston Consulting Group stress that players in the same-day delivery race must test markets carefully.
“National carriers are understandably looking to expand their portfolio of offerings, guard against innovative competitors, and protect share from smaller, specialized players,” said Mel Wolfgang, a Senior Partner at BCG, in a statement. “But they need to be selective in their approach and test scenarios before committing to large rollouts, and they need to experiment creatively with new technologies and partnerships with regional carriers.”
It’s clear that same-day delivery promises to play a prominent part in the commerce landscape of the future.