Shipping & Delivery
Food delivery, while once niche, is becoming more mainstream. This year saw the explosion of fast food giants like McDonald's and Burger King going all-in on digital ordering and delivery through partnerships with UberEats and Grubhub, momentum that's certain to continue throughout 2019.
For digital sales, delivery might not seem as important as a product itself, but many shoppers judge a retailer on its last-mile capabilities. Loyalty can be made or broken based on cost, speed and accuracy of shipping.
Buy online, pick up in-store is seen as the solution for consumers who don’t want to wait for their package, but according to an OrderDynamics survey, 30.3% of retailers in select countries can confirm an order for pickup—more or less in the same timeframe as standard shipping—in two or more days.
Food delivery, common in urban areas where population is dense and car ownership is low, is expanding to the suburbs and beyond thanks to the rise of digital services connecting users to restaurants.
A growing number of consumers expect their items to be shipped the second they purchase a product. A recent analysis from RetailX and Internet Retailing found that nearly a quarter of retailers in Europe now provide this service, up 8 percentage points from 2017.
The big-box retailer is testing online grocery delivery using Waymo (formerly the Google self-driving car project). While the order is being prepared by Walmart, a car will pick up and drive the consumer to the store to retrieve the purchase. But is there consumer demand for this service?
In a recent study from Walker Sands, respondents were nearly twice as likely to say that the ecommerce giant always meets their speedy delivery expectations compared with other digital retailers.
Amazon Prime's speed is acclimating shoppers to faster delivery, and these greater expectations are affecting all retailers.