Looking On The Bright Side of
Same Day Courier Service
Same day courier service is a service that helps to deliver your goods and products from one place to another quickly and efficiently. Its advantages include the ability to reach a wide audience and to be affordable. It also gives you peace of mind as you know that your package will be delivered on time and will not suffer any damage in transit.
Same-day delivery has become an important part of modern logistics because it offers many benefits to both businesses and consumers. It can be a great way to boost sales and build trust in your brand.
Retailers are particularly keen on same-day delivery because it increases the amount of revenue they can receive from online transactions. It also allows them to compete with more flexible rivals and to attract new customers.
The same-day delivery market is expected to reach EUR 3 billion by 2020. It is expected to outgrow the parcel market in most main markets in Western Europe, and it is likely to grow faster in urban areas than in rural ones (Exhibit 1).
A growing number of consumers are willing to pay more for same-day delivery as a percentage of their total purchase value. This is driven by rising GDP per capita and increasing e-commerce adoption.
For online retailers, same-day delivery can provide a strategic competitive advantage that will help them to win back lost e-commerce customers and improve their market share. The availability of same-day delivery is also a key driver for increasing sales in product categories that have not been sold on a large scale on the internet, such as groceries or consumer electronics.
Despite the strong appeal of same-day delivery, there are some challenges to introducing this service at scale in a cost-effective manner. First, same-day delivery requires a critical mass of consumers with sufficient purchasing power to cover the cost of delivery. Second, it must be available in densely populated metropolitan areas with extensive buying power.
Third, same-day delivery has to be available at a price that is below 7 percent of the total purchase value. This is especially true for e-commerce orders, which typically account for over 30 percent of all B2C shipments.
Fourth, last-mile delivery needs to be flexible enough to pick up and deliver orders adhoc or multiple times throughout the day. For this, dynamic rerouting using geo-fencing is essential.
In addition, same-day delivery needs to be scalable and fast. It is not possible for courier companies to offer same-day delivery without a robust logistics infrastructure, including a reliable network of last-mile depots and sorting stations that can quickly react to orders from different sources and handle fast-tracking.
Same-day delivery is increasingly being offered by parcel logistics providers, as well as by brokers of courier capacity and multichannel retailers building their own fleets. These players are creating networks capable of providing same-day delivery at scale, which in turn are driving the growth of the same-day courier market.