As the world around us becomes increasingly digital and connected, consumers’ expectations for delivery have risen. They’ve come to expect a fast turnaround when they buy online, and it’s not uncommon for them to abandon a purchase if it feels like it will be delayed too long. As a result, growth-minded ecommerce brands are increasingly considering methods for enabling instant delivery to drive faster customer acquisition and enable stronger retention.
In short, instant delivery refers to the process of picking up and delivering a product from a local retailer within an extremely short time window, such as one to two hours after a customer places their order. The most successful examples of this business model employ hyperlocal micro-fulfillment centers (MFCs) and eco-friendly transportation for last mile delivery. Customers place orders directly on a brand’s DTC website/app and the MFC takes care of the back-end ordering, fulfillment, and delivery functions.
Typically, MFCs feature a smaller storage capacity than traditional warehouses, so they can only store fast-moving products that turn quickly and can be shipped easily to stores for pickup. As a result, it’s difficult for instant-delivery apps to offer two-hour delivery on bulky goods such as furniture or large electronics.
The other big cost driver for instant-delivery services is labour, which these companies need to cover in order to pick and deliver a product in a short time frame. While these businesses will likely work to reduce this cost over time, it’s an important consideration for any ecommerce brand looking to launch an instant-delivery service. Instant Delivery