The Top 5 Delivery Methods for Ecommerce

Offering the right delivery methods and timings for your customers is a tricky balancing act, between the ever-increasing demand for faster deliveries and the output at which you can actually fulfil them. It may be tempting to get on the hype train for same day delivery, but without the right logistics in place (or the products on hand to deliver), you may not see the results you want.

In our recent market research report, we found that 50% of retail businesses were losing customers to a poor delivery experience. By ensuring you have a robust logistics process and reliable logistics partners you can improve the success and satisfaction of your deliveries.

At Zedify, our expertise in last-mile delivery means we can help your customers get the packages they need in the time you’ve agreed on. Here, we’ll break down the top five delivery methods for ecommerce, talking about the pros and cons of each while giving some extra considerations for carrying them out.

 

Next Day Delivery

Pros:

Customer satisfaction is one of the main benefits of next day delivery. You can provide a fast delivery of goods, building satisfaction and loyalty.

A 2014 study showed 86% of shoppers said same day delivery slots impacted their buying decisions. This is further enhanced by the predictability of this service. Since the customer knows when the product will arrive, they can be prepared to receive it, meaning they’re less likely to miss the package. This is more manageable than something like same day delivery, both for the customer and for the logistics provider. 

Finally, next day delivery offers a competitive edge against competitors who can’t carry out this delivery method, and boosts your image for customers who value speed. However, there are other, faster methods that could take the edge off you once more.

Cons:

Faster delivery often comes with higher costs, as increasing shipping and operational costs can reduce profit margins per item. However, the increased profit from the volume of items could outweigh the margin loss from the increased costs, meaning you may end up having greater revenue overall.

Next day delivery also has complex logistics, which means you need efficient and well-co-ordinated supply chain operations in order to pull it off. Even when everything goes well from your end, other factors like weather, traffic, or logistical issues can cause unexpected delays on delivery which lead to customer dissatisfaction.

Considerations:

Here are some things you can do to ensure your next day deliveries are carried out effectively:

• Partner with a reliable carrier to meet delivery promises.
• Utilise inventory management and real-time tracking to ensure and communicate availability.
• Revisit your pricing strategy and determine where the increased costs of next day delivery can be made back.

Find out how important next day delivery is to your customers >

Same Day Delivery

Pros:

The obvious advantage of same day delivery is its speed. This provides customers with near-instant gratification for their orders, and helps to meet their urgent needs. Same day delivery isn’t offered by many ecommerce businesses at the moment, so it also acts as a unique selling point for your business.

Cons:

The high operational costs of same day delivery due to factors like local inventory management and rapid logistics management mean it isn’t a viable option for everyone. It is also extremely complex to fulfil orders in this way, meaning it requires efficient processes and proximity to customers to pull off effectively.

Considerations:

If you are considering same day delivery as an option for your ecommerce sales, here are some tips:

• Consider the scalability of the solution – it may not be viable for all locations, especially rural ones.
• Build a partnership with a local courier or delivery service.
• Create pockets of decentralised inventory to ensure there is close access for your products in all the areas you offer same day delivery to.

Find out about our sustainable same day delivery service >

Ship from Store

Pros:

Shipping from the store allows you to utilise existing infrastructure such as storage, vehicles, and distribution centres. This can also lead to shorter delivery times by accessing stores that are closest to the customer.

Cons:

Without real-time inventory management, you may find that you’re unable to fulfil all your orders on time – or at all. The increased labour costs of shipping from store should also be considered, as store staff may need to be trained and allocated for picking and packing. This increases the need for support in other areas of your store, resulting in higher overheads.

Peak times in the store can also cause disruptions, stockouts, or other complications, so you will need to be wary of offering this delivery method during these occasions.

Considerations:

To successfully pull off store shipping, here are some things you may need to know:

• Synchronise your inventory management both online and in-store to manage stock levels.
• Create an optimised store layout that allows for efficient picking and packing without negatively impacting the in-store customer experience.

Lockers & Drop-Off Points

Pros:

Other delivery methods often require the customer to be at home, or have someone available to collect their package, typically at unpredictable times, that lie during working hours. Lockers and drop-off points combat this, offering flexible pick-up times at convenient locations.

Not only does this reduce the chance a delivery will be missed – as the package can be held in the lockers for a specified period of time – but it also provides a centralised drop-off point that can reduce last-mile delivery expenses. These factors combined mean a better experience for customers, lower costs for deliver, and lower emissions during the last mile.

Cons:

Especially in rural areas and places with lower population, lockers aren’t always readily available. This means the option may not be available to every customer, which could cause disappointment. Even when there are lockers for customers to use, it requires them to travel to get to them, adding additional effort to fulfil the order on the customer’s part.

Some could also argue about the security concerns of lockers in a public place, but they are arguably safer than a package being left on a doorstep when no one is there to receive it.

Considerations:

Here are some ways to mitigate the challenges of locker delivery:

• Use or place lockers in convenient, high-traffic places where customers will be able to find them.
• Ensure your lockers are secure and protected.
• Streamline the pick-up process to make it as convenient as possible for your customers.

Click & Collect

Pros:

Click and collect is much like the drop-off or locker method, allowing customers to choose a time to collect their orders from a given location. In fact, many supermarket locations have lockers present, so in some cases you could say they’re on in the same.

The main place it differs is when it’s your store the customers are collecting from. Like with ‘ship from store’, this could mean complications with stock management, but when handled correctly it allows you to save on delivery and logistics. Plus, having the customer visit your store may encourage them to pick up other products while they’re there!

Cons:

The similarity of click and collect with other methods doesn’t stop with the pros, however. Like lockers, click and collect requires customers to travel to the store, which may not be in a convenient location, moreover, many shoppers will travel to the store in a car which isn’t great for the planet either. For many ecommerce businesses, a physical location doesn’t exist, so this isn’t even a viable method in the first place.

If you do have a brick & mortar store, you’ll need to set aside dedicated space and staff for handling any click and collect orders that come through. You’ll also need to watch out for collection times, as high order volumes could lead to you being overwhelmed if they cross over with peak times.

Considerations:

Make your click and collect customer experience the best it can be – consider the following:

• Clearly communicate with your customer when their order will be ready to collect.
• Set aside space and resources for storage and retrieval to ensure a smooth collection process.
• Consider the user journey in store to encourage the purchase of additional items the customer may be interested in.

 

Effective Urban Delivery for Ecommerce from Zedify

So there you have it – the top five ecommerce delivery methods! To improve your competitiveness as a business you will likely want to offer an assortment of all these options, depending on where your customers like and what you deliver. You will also need to work with a trusted delivery partner like Zedify.

Our cargo bikes and electric vans offer a cost-effective way for expedient last-mile delivery with lower environmental impact than conventional methods of transport. Chat to a member of the team today to find out more.

Find out whether the last mile is the blocker to your business growth >

Learn what last mile delivery looks like in London >