Tag: Amazon

Sohum Mehta, Popularity of Amazon’s Same-Day Delivery Service Not Surprising

Sohum Mehta, Popularity of Amazon’s Same-Day Delivery Service Not Surprising

Over the past few years, Canada’s e-commerce traffic has skyrocketed, with Canadians spending more than $25 billion in digital stores, shops and market places every year.

Last year, 84 per cent of Canadians reported making at least one online purchase and experts expect the trend to balloon to well over $49 billion by 2019.

It’s clear that customers are drawn to the convenience and ease of being able to shop at any point of their day, not to mention from their living room, office, or on their commute.

It’s also not surprising that now online customers are demanding an even more convenient service, with same-day delivery. This is in part why many retailers have been investing steadily into upgrading their e-commerce services. The customers want it and that is driving more and more companies towards it.

Consumers are looking to replicate the ‘in-store’ experience online, seeking to have the items they just bought in their hands as soon as possible.

What’s interesting is that according to Canada Post, 16 per cent of online shoppers who reached the online checkout abandoned their orders once they found out the estimated delivery time.

The reality is that online consumers have simply begun to expect short delivery times. They are seeing other retail markets, such as in the United States, offering these kinds of services and they want that same level of convenience, and in most cases, they are willing to pay for it.

Although the shift toward same-day e-commerce delivery is in the early stages in Canada, it can already be seen in some of the country’s large retailers.

Indigo Books & Music Inc., Best Buy Canada, Ssense and Frank + Oak have been offering same-day delivery with a delivery charge of approximately $12 to $14.

This year Sports Chek has begun testing same-day shipping in its local Toronto markets.

In 2013, Wal-Mart Canada piloted same-day delivery with Canada Post. The retail giant later attempted to offer the same service independently, but eventually dropped the service.

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Most recently, Amazon.com Inc. has made the move to offer same-day delivery for its prime members in Toronto and Vancouver. In my view, Amazon’s shift to include this same-day service is only going to make the service more popular with consumers and place further pressure on other retailers to move in a similar direction.

Amazon has launched same-day delivery prior to the busy 2016 holiday season.  In the U.S., Amazon offers free same-day shipping in 27 cities, seven days a week. It began offering the service last year, allowing online customers to place orders before noon and receive their shipments by 9 PM the same day.

The e-commerce landscape in Canada is shifting to meet consumers demands; these demands dictate that online shopping be even faster and more convenient.