Customer expectations are ever-evolving, and the latest buzzword in the world of ecommerce is same-day delivery. While in the past, customers expected same-day delivery only for essential items like groceries, now they expect it for all their online orders.

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Ecommerce brands can drive sales and upscale their business by capitalising on the newest customer expectation, i.e. same-day delivery.

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On the other side, if not planned properly, same-day delivery can be expensive and significantly reduce your profit margins. In addition to that, efficiency also has to be maintained by streamlining order processing to ensure quick fulfilment.

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You would be relieved to know that through strategic planning and proper implementation, ecommerce brands can successfully provide same-day delivery and enhance customer satisfaction without burning a hole in their pockets.

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In this blog, you will learn about same-day delivery, the benefits of same-day delivery, the challenges ecommerce brands face while providing same-day delivery and how to overcome them.

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What is same-day delivery?

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Same-day delivery is an express delivery service wherein an order is delivered to the customer within 24 hours of order placement.

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For instance, a customer placed an order for a product at 12:00 PM today; if the order is delivered by evening (say 7:00 PM)- it is same-day delivery.

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According to Statista, the global same-day delivery market size is expected to reach $26.4 billion by 2027.

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What are the benefits of offering same-day delivery?

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As an ecommerce brand, you know that the demand for same-day delivery is skyrocketing among customers, but is it beneficial for you? Let’s understand why ecommerce brands should strive to offer same-day delivery:

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1. Drives ecommerce sales
2. Reduces shopping cart abandonment
3. Ensures competitiveness with ecommerce giants like Amazon
4. Increases customer satisfaction
5. Boosts customer loyalty
6. Adds to the credibility of a brand

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What are the challenges of same-day delivery and how to overcome them?

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Providing same-day delivery can be beneficial for ecommerce sellers; however, the road to ensuring same-day delivery is not always smooth. On the bright side, the process can be easy and cost-effective with the right strategies.

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Let’s understand the major challenges of same-day delivery and how to overcome them:

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1. Distant location of ecommerce warehouses

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The farther your ecommerce warehouse is from a customer’s delivery location, the longer the transit time as orders have to be transported over a larger distance. In such a scenario, you might not be able to provide same-day delivery.

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Solution: To overcome the above-mentioned problem, you can split inventory across multiple ecommerce warehouses to reduce the transit time of orders.

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For example- Eshopbox splits inventory across its distributed network of fulfilment centres across India. Since inventory is stored closer to customers, you can take advantage of local and regional shipping instead of national shipping—reducing the distance and transit time significantly. Moreover, Eshopbox provides inventory allocation suggestions across multiple ecommerce warehouses according to local demand. Thus, you will be able to ensure same-day delivery.

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2. High operational costs

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Splitting inventory across multiple ecommerce warehouses helps sellers deliver orders faster and cheaper. Thus, ecommerce sellers often have to lease or rent multiple ecommerce warehouses and incur the costs of maintaining inventory across them. You may need to use additional resources or manpower to provide same-day delivery.

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It is also possible that your customers want same-day delivery but are unwilling to pay extra charges for it, meaning you will have to bear the entire shipping cost. The above-mentioned situations can reduce the profit margin of ecommerce sellers.

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Solution: Instead of renting multiple warehouses, take advantage of the established ecommerce warehouse network of expert 3PLs (Third-party logistics) like Eshopbox.

To reduce shipping costs, you can negotiate with multiple courier partners and get the best possible shipping rates. At the same time, since the package size and weight determine shipping costs, you can reduce them by putting less in-fill and choosing smaller boxes. Lastly, there are a few strategies to provide free shipping that you can use without cutting your profit margins.

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For example- Eshopbox has an exceptionally strong shipping network with state-of-the-art fulfilment centres to facilitate same-day delivery. Furthermore, Eshopbox has tie-ups with several courier partners and can provide negotiated shipping rates due to the bulk order volume Eshopbox deals in—making same-day delivery cost-efficient.

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3. Poor visibility of inventory

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An inaccurate count of products can lead to situations like overselling and stock-outs, which harm the reputation of an ecommerce seller. Lack of inventory at an ecommerce warehouse or fulfilment centre hinders lightning-fast shipping and makes it extremely difficult to provide same-day delivery.

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Let’s say your inventory is split across three warehouses in Mumbai, Gurugram and Bengaluru. You receive an order from Delhi. The order should be allocated to the Gurugram warehouse to provide same-day delivery. But if the product is not in stock in Gurugram, the order would have to be shipped from another warehouse which is farther, making it challenging to provide same-day delivery.

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Solution: Ensure that your Inventory Management System (IMS) is robust and provides an accurate count of inventory at all times, as well as inventory replenishment reminders.

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For instance- Eshopbox has an efficient Inventory Management System (IMS) that provides an accurate count of inventory levels and a bird’s eye view of orders, their status and more. In addition, inventory levels are updated across multiple sales channels every 5 minutes to prevent overselling, and inventory replenishment reminders are given to prevent stock-outs.

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4. Incorrect order allocation

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You have decentralised inventory across multiple fulfilment centres, but if the order is not allocated to the ecommerce warehouse closest to the customers, you may not be able to provide same-day delivery.

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Solution: You can either manually allocate orders to the nearest fulfilment centre or invest in an automated system to do so.

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For instance: Eshopbox provides same-day delivery with intelligent order routing, i.e by automatically allocating orders to the fulfilment centres nearest to the customer’s location.

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5. Time-consuming order processing

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If an order is not packed and shipped on time, it will not be delivered on time. Delays in order processing can prevent you from ensuring same-day delivery.

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Solution: Follow SOPs (Standard Operating Procedure) while picking and packing orders. Also, have a fast and streamlined order fulfilment process. You can use technology like conveyor belts to automate order processing and reduce the chances of human errors.

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For example- Eshopbox has an automated and streamlined pick-and-pack process. Eshopbox follows SOPs to process each order and also ensures strict adherence to SLAs (Service Level Agreements) for marketplace orders, ensuring every order is marked 'ready-to-ship' as fast as possible to deliver orders within 24 hours.

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6. Improper and unsafe packaging

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In a rush to ship orders as quickly as possible, orders may not be appropriately packed. Improper packaging can cause breakage, spoilage and other forms of in-transit damage. While customers want lightning-fast shipping and delivery, they also want proper packaging so that the products inside are not damaged.

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Solution: Ensure high order accuracy while packing orders through the use of technology like conveyer belts and RFID tags. You can avoid packaging mistakes by using good-quality packaging material, putting the right amount of in-fill, and choosing the box of the most appropriate size.

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For example- Eshopbox leverages the latest technology to ensure a 99.75% order accuracy rate. Eshopbox’s highly trained staff packs orders in the right boxes with the correct amount of in-fill to prevent any scope of in-transit damage.

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7. Inefficiency in last-mile delivery

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Last-mile delivery is the process of shipping an order from an ecommerce warehouse to a customer’s location using a courier service. As a courier partner does last-mile delivery, brands often lose visibility and control of their orders, which can cause delays or even loss of shipments.

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Solution: Ecommerce sellers can have tie-ups with multiple delivery partners with an order tracking system. Your chosen courier partners should also optimise route selection to use the fastest and shortest route.

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For instance- Eshopbox has tie-ups with multiple reliable courier partners that optimise route selection. Eshopbox empowers you and your customers with real-time order tracking information so that you have complete visibility. Moreover, Eshopbox proactively notifies you in case of shipping exceptions, so you can take action immediately.

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8. Lack of focus on customer experience

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Providing a superior Customer Experience (CX) can help ecommerce brands stand out and gain a competitive edge; according to research, 74% of customers are likely to purchase a product simply on the basis of customer experience. Evidently, a better customer experience equates to higher ecommerce sales.

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However, in a rush to provide same-day delivery, ecommerce sellers can find it challenging to deliver custom packaging and order tracking information which alleviate customer experience.

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Solution: You can enhance the shopping experience by creating a unique unboxing experience and providing real-time order tracking and order notifications.

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For example- Eshopbox provides a world-class customer experience by allowing you to create a superior unboxing experience through custom packaging and providing real-time order tracking. Eshopbox sends order notifications through email and SMS. Moreover, Eshopbox ensures seamless and easy returns to delight customers.

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Summing up

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Same-day delivery is the new norm of online shopping, and brands that ace it will be ahead of their competition. With the right strategies and emphasis on proper planning, ecommerce brands can profitably provide same-day delivery and boost ecommerce sales in the long run. With real-time order tracking and a superior post-purchase experience, Eshopbox is your answer for same-day delivery.