How Two-Day Delivery Impacts Small Businesses
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In February 2005, Amazon launched Amazon Prime, a new service that would guarantee two-day delivery for members. At the time, it was an astonishing commitment to make. How can one company ensure delivery in 48 hours or less?
Today, it’s no longer an unthinkable undertaking — two-day delivery is something that many consumers expect as an option, no matter what they’re ordering. It’s one thing for Amazon to guarantee two-day delivery, but what about small businesses? How can startups and growing companies create a two-day delivery service that works? And why should they go through the effort of two-day delivery?
First and foremost, two-day delivery is absolutely possible for businesses of any size when they have the right fulfillment or last mile partners in place. And the benefits of two-day delivery are huge, which should inspire any small business to find the right services and move forward with two-day services.
Here’s a quick look at the five primary benefits your business enjoys when you provide two-day delivery.
1. Drive More Revenue
As more and more customers shop via ecommerce, they are becoming less price sensitive and more attuned to delivery speed. In fact, 65% of consumers are willing to pay more for products if they are delivered quickly. If your small business can create a reliable two-day delivery system, it can command higher prices.
Many companies also use two-day delivery as a marketing tool. When you promote your fast delivery times, you drive more prospective customers into the top of the funnel. This leads to higher volume sales for your company.
Embrace two-day delivery, and you’ll find that it boosts your revenue.
2. Reach More Customers
Back in the 20th century, serving impulse buyers meant strategically placing certain items near checkout lines at brick-and-mortar stores. Today, impulse buying means spending big bucks online to meet short-term needs:
- An outfit for an upcoming event.
- Flowers for a loved one’s birthday.
- A thank you gift for someone special.
A recent survey indicates that 88.6% of American adults give in to the impulse to shop online, and they spend roughly $81.75 during each impulse session. That’s a $17.78 billion opportunity for small businesses to take advantage of.
But small businesses can’t take advantage of consumers’ impulses if they don’t offer fast shipping. No one is going to buy an outfit if it won’t arrive by the event. No one is going to send flowers if they arrive after the birthday. And no one is going to send a thank you gift that arrives too late to be meaningful.
When you provide two-day shipping, you’re better positioned to capture impulse buyers and to claim part of the $17.78 billion opportunity they represent.
3. Generate Repeat Business
Reliable shipping matters. If you fail to deliver on time, or if you otherwise provide a poor shipping experience, 47% of customers won’t buy from you again. Conversely, 40% of customers say that on-time shipping boosts their loyalty to ecommerce brands.
This is another reason why you need to be careful when selecting last mile partners. When you find the right two-day delivery partner, you’re able to delight your customers with fast, reliable shipping, which leads to repeat purchases. But, if you choose the wrong two-day delivery partner, you risk alienating buyers and lowering your repeat-purchase rate.
Choose wisely when searching for last mile partners, and your small business stands to reap the benefits via increased loyalty.
4. Reduce Cart Abandonment
The vast majority of shopping cart abandonment on ecommerce sites is related to delivery — either delivery cost or delivery speed. One study indicates that 50% of cart abandonment is due to high shipping costs and another 18% is due to slow shipping speeds. Two-day delivery through a reliable, affordable last mile logistic partner is the best way to overcome these issues and reduce cart abandonment.
The average cart abandonment rate is around 70%. Imagine how you could boost your company’s sales volume and revenue by lowering shipping costs and accelerating shipping speed via a quality two-day delivery partner.
5. Compete With Big Names
In 2021, Amazon owned 56.7% of the ecommerce market in the United States, which is an incredible number. No online retailer comes close to Amazon’s dominance.
Your small business doesn’t need to own more than half of the U.S. ecommerce market to be successful, though. By offering two-day delivery, you give your customers the Amazon-like experience that they have become accustomed to. You’re able to compete with the big names in the ecommerce industry and drive a greater share of the markets that are most relevant to your business — even if you don’t have Amazon-like resources.
Trust Metrobi as Your Two-Day Delivery Partner
You could invest a great deal of time, effort and money into creating your own two-day delivery system and workflows. But it’s easier and more affordable to find a trusted partner for two-day delivery.
That’s exactly what we do at Metrobi, where we are proud to provide reliable two-day delivery services to small businesses in markets across the United States. Our clients save 30% on delivery costs each year while also experiencing increases of 20% in sales.
Are you ready to simplify two-day delivery so your company can grow? Get in touch to learn more about how Metrobi can empower your business.