ATLANTA — Feb. 27, 2024 — In a recent survey, the vast majority (80%) of companies reported increased revenue after implementing same-day delivery.1 The growth is significant: Nearly one-third of retailers reported a revenue increase of more than 10%. The primary benefits cited by executives were higher customer satisfaction (80%), an increase in sales (70%), and improved retention rates (66%).
The research, published by Roadie, a UPS Company and a logistics management and crowdsourced delivery platform, in partnership with studioID, sheds light on the return on investment companies see from implementing same-day delivery.
“Same-day delivery isn’t just a competitive advantage for retailers, although it’s a critical one. It’s also a money-maker,” said Marc Gorlin, founder and CEO of Roadie. “To compete, retailers have to offer a menu of delivery options to let the customer choose when and how they want their purchase, each and every time they buy. But the potential payoff is clear – same-day delivery is a data-backed revenue-generating channel.”
Of the companies surveyed, most that offer same-day delivery have done so for three years or more (63%), and 68% found their same-day delivery ROI trends consistently upward year-over-year. The survey found ROI unlocks insights that help make decisions about:
Product and service offerings (65%)
Expansion of same-day delivery in new regions (59%)
Warehouse space (54%)
Distribution facility locations (51%)
Logistics investments (45%)
Labor (37%)
However, operational costs rose for 79% of companies after rolling out same-day delivery according to the survey, highlighting the need for cost-efficient delivery models.
As a result, most companies increased their prices when they launched a same-day delivery service, but in a variety and combination of ways. While 29% raised the prices of their products to offset delivery costs, 24% offered a free trial first, 17% charged an annual fee, 14% charged a one-time flat fee, 13% charged a same-day fee on each order, and 13% charged a monthly fee. Only 21% did not charge customers or raise prices, and 7% actually decreased their prices after adopting same-day delivery.
“Retailers can mitigate some of the up-front costs of a same-day delivery program by piloting with partners that can help keep start-up costs to a minimum. That can allow them to experiment, play with pricing and service levels, and optimize to ultimately find the sweet spot,” added Gorlin. “Though operational costs might rise at first, same-day delivery opens up new potential in sales, market share, and customer loyalty.”
Read the full report on the survey’s findings.
1 "Is Same-Day Delivery Worth the Hype?" (https://info.roadie.com/roi-of-same-day-delivery.) Roadie, Feb. 22, 2024.
About Roadie
Roadie, a UPS Company, is a logistics management and crowdsourced delivery platform. Founded in 2014, Roadie offers businesses fast, flexible, and asset-light logistics solutions for last-mile delivery. Roadie enables local delivery to more than 97% of U.S. households by providing access to more than 200,000 independent drivers nationwide – allowing businesses to offer their customers delivery optionality for almost any industry, from airlines to artisans.
Roadie’s solutions include local same-day pickup and delivery, delivery from warehouses with in-house sortation, oversized delivery, sustainable delivery, returns, and more. For more information, visit www.roadie.com.
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