According to researchers, 75% of customers (from a survey of 1,500 U.S. customers) expect free shipping from online retailers and listed free delivery as one of the primary factors in their decision to purchase.  However, in this same survey, only 9% of shoppers cited same-day delivery as the most important factor in their purchase decision.

Same-day delivery appeals primarily to one specific target group, customers between 18 and 34 with household incomes above $150,000 living in urban areas.  This group of “affluent millennials” only represents about 2% of the market.  These customers might be willing to pay up to $10 to have online orders delivered the same day.  Retailers might choose to offer same-day delivery to appeal to these customers, build brand loyalty, or enhance brand awareness.

Google is likely getting ready to introduce Google Shopping Express, which will offer same-day delivery from major brick and mortar stores for an annual fee.  Some companies offer customers the “buy now” option for same-day delivery. These retailers often absorb the cost of delivery in order to overcome objections to delivery charges.

Discussion Questions:

1. Is it worth the time and expense for retailers to offer same-day delivery?

2. Is same-day delivery important to you?  If so, how much would you pay for it?