As those paying close attention to the evolution of the business world can confirm, Google Express no longer offers a same-day delivery service. Apparently, this decision was made as part of an attempt to recalibrate the service introduced in March 2013 after failing to rise to the requirements of a market dominated by Amazon and on-demand start-up businesses.
While it has a great deal of supporters, same-day delivery services also have a number of drawbacks. On Amazon, for example, they are conditioned by prime membership, the order value, which must exceed 35 USD, as well as location. Of course, a website of that size can afford to test out various delivery strategies. However, the decision to no longer provide such services stands out as an indicator of their low profitability and sustainability. According to some experts, the main explanation behind it lies in the excessively high costs they involve to the provider and the customer alike as compared to other delivery services such as in-store pickup services, for instance.
In-store pickup has proven to be much more effective than same-day delivery on a financial level, while also being much more convenient for brick-and-mortar businesses. A comparison between the two solutions is bound to reveal some quite significant cost differences. Moreover, in-store pickup is the traditional solution that customers have grown accustomed to and fond of. According to research, in today’s United States of America, for instance, 70 per cent of people prefer the Buy Online, Pickup In Store solution (BOPIS), 5 per cent of them using it unconditionally when available.
In-store pickup has already proven its benefits on countless occasions, starting with the fact that it does not require the payment of a shipping fee upon ordering. In fact, research indicates that 58 per cent of online customers prefer this solution for this particular reason, thus saving the effort of purchasing their products from the store while also saving the shipping costs. In this context, it makes sense that same-day delivery services be avoided by many, the shipping costs involved being excessively high. Moreover, many people do not mind shopping from the store as they do it to fill their time, as a routine or for leisure.
The increasing popularity of the BOPIS solution among consumers everywhere and its becoming a customary solution have forced retailers to adapt. In the end, its success lies in the fact that it provides an opportunity for brands to sell their products online while also keeping the local dealers satisfied. In other words, it creates a favourable context for improved relationships between retailers and brands, for meeting the requirements of the profile market, as well as for increased sales. Moreover, research also reveals that with 40 per cent of those who shop, in-store pickup creates a pretext for additional shopping.
In this context, same-day delivery services appear to provide an unneeded solution that involves unnecessary expenses, whereas in-store pickup sets itself apart as a realistic and cost effective solution instead.
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