Sunday 14 October 2012

Same-day delivery sharpens retail competition

You see something on Argos or Karen Millen, click to buy it, and then . . . wait to receive the package a day or two or a week later? That's so twentieth-century.

These and other retailers are now speeding packages to customers on the same day, for an extra fee, adding to the competitive pressure while improving the value equation for customers who want their purchases right away.

If you're shopping on the Argos site, for example, you can click to reserve a particular product at the nearby store. Once you've entered your postal code, you'll have the option of clicking to have Shutl pick the item up and deliver it to your door in 90 minutes or less.

UK-based Shutl has been so successful at attracting customers that it's now planning to expand to a number of US cities, with investment from UPS. Shutl recently made it to the top of the Startups 2012 list (although it was founded in 2008).

Amazon UK offers evening delivery service for orders placed that day. In the US, Walmart is testing same-day delivery for the holiday season, and eBay has also tested same-day delivery.

More competition means more innovation and more choices for customers.