What Is Same-Day Delivery? How Same-Day Delivery Works

Customer expectations around delivery speed continue to increase, with one survey reporting that 80% of respondents wanted same-day delivery options. With the rise of same-day delivery services from major retailers like Amazon and Walmart, small and medium-sized ecommerce businesses face more pressure to offer the same speedy shipping. 

Learn how same-day delivery works, how it differs from other fast delivery services, and how you can implement it with your own business.

What is same-day delivery?

Same-day delivery is a service where businesses complete the delivery of a shipment to an end customer on the same day the customer placed the order. 

Since same-day delivery involves more complex logistics operations than standard shipping options, online retailers and merchants typically pay more money for same-day delivery—choosing between absorbing the extra cost themselves or charging customers for the shipping expense. Customers often choose same-day delivery options for time-sensitive shipments like last-minute gifts, as well as for the instant gratification of an impulse buy.

Types of fast delivery services

Same-day delivery is one type of fast delivery method, but there are others to consider:

• Same-day shipping. Same-day shipping means an order will be picked and packed, then shipped from a warehouse on the same day a customer places it, but the shipment could arrive at a customer’s address on another day with no guarantee of same-day delivery.

• Next-day delivery. Next-day delivery guarantees the delivery of an item ordered online by the end of the next day after purchase. Businesses using this method typically establish a cut-off time during the afternoon or evening for next-day delivery orders.

• Two-day delivery. Two-day delivery options typically cost less than same-day or next-day delivery, and guarantee the delivery of an online order within two days after purchase. For instance, many Amazon Prime items ship with this type of delivery for free.

• Expedited shipping. Expedited shipping is a broader term that refers to any fast shipping option taking between one to three days.

How does same-day delivery work?

Same-day delivery starts with a customer’s order online. After an ecommerce company receives and processes that order, the business will send the order information to a fulfillment center. Warehouse workers will select the correct items and package them for shipping within hours of receiving the order. 

A shipping carrier or courier service picks up the package from the fulfillment center and delivers it to a customer’s address by the end of the day. The ecommerce business monitors the delivery process using order tracking software and electronic proof of delivery (POD) to confirm that a package has arrived at its intended destination on time and in good condition.

Benefits of offering same-day delivery

There are clear advantages to offering same-day delivery for your business. Here are a few to consider:

• Increased customer satisfaction. Same-day delivery options can improve the customer experience with your ecommerce business by meeting needs more efficiently. You can increase brand trust and inspire repeat business by delivering your packages at rapid-fire speeds.

• Improved competitive advantage. As more online retailers and marketplaces offer same-day delivery (especially large companies with market dominance), merchants can offer same-day delivery options to remain competitive in the ecommerce landscape. 

• Reduced cart abandonment. Unexpectedly long delivery time frames or shipping costs can cause customers to abandon their online shopping carts before finalizing a purchase, meaning cost-effective same-day delivery options can increase conversion rates for your store.

Challenges of offering same-day delivery

Offering same-day delivery can come with built-in challenges you’ll need to handle, though you may find overcoming them is well worth it. These are some of the most common:

• Higher shipping costs. Same-day delivery typically involves higher costs than standard delivery methods since there are upfront operational costs and higher rates from courier services and shipping carriers for expedited shipping.

• Limited availability. Same-day delivery methods are most suitable for heavily populated markets like cities with thousands of potential customers in a localized area. Same-day delivery is not often available for rural and remote areas that take shipping services more time to reach.

• Complex logistics. The operational efficiency required to achieve same-day delivery can involve complicated logistics and systems that take more time to set up than standard methods like ground or economy shipping. 

• Environmental impact. Depending on the market, same-day delivery can result in underfilled vehicles, less efficient delivery routes, and increased fuel usage with air freight.

How to implement same-day delivery

1. Evaluate demand for same-day delivery
2. Assess your current order fulfillment process
3. Choose a radius and cut-off time
4. Optimize your inventory management system
5. Use shipping software

If same-day delivery is a service you’d like to offer, here are some steps to consider:

1. Evaluate demand for same-day delivery 

Gather customer feedback about how much your customer base values same-day delivery. Although some target markets expect quick deliveries, customers might prefer standard delivery if it results in a cheaper price for online orders. For instance, one McKinsey survey reported 90% of respondents were willing to wait two to three days for an online order if it helps them avoid additional shipping costs. 

Use customer feedback tools across multiple communication channels to gain insights about how much importance your customers place on same-day delivery—including surveys, social media comments, direct messages, reviews, and chatbots on your ecommerce store. Another way to evaluate customer demand for same-day delivery is by conducting a customer behavior analysis using data from your online store, like purchase history and cart abandonment rates.

2. Assess your current order fulfillment process

Audit your existing order fulfillment process. Create an order fulfillment checklist by evaluating each step in your process, including how you receive orders, process payments, package products, and prepare them for shipping with a courier or carrier service. 

How quickly can you fulfill an order with your current process? Where are there bottlenecks that slow down fulfillment? Where are there opportunities for automation tools to speed up the process? Once you’ve completed an audit of your order fulfillment operations, you can evaluate the budget and workload required to begin offering same-day delivery.

3. Choose a radius and cut-off time

Decide where you will fulfill same-day delivery orders. For example, you could offer same-day delivery to customers within a 20-mile radius of your fulfillment center or choose a specific city to start offering same-day delivery based on where your customers live and which shipping carriers offer same-day delivery services in that area. 

Choose a consistent cut-off time for same-day delivery orders and communicate it clearly to customers when they’re choosing a shipping method on your website. You can select a cut-off time in the late morning or early afternoon, since later cut-off times can put an unnecessary strain on your logistics operations.

4. Optimize your inventory management system

To facilitate same-day deliveries, establish systems for inventory management—the process of overseeing and controlling the flow of goods within your business. Consider using AI-powered inventory management software to automate real-time inventory tracking and demand forecasting for items with same-day delivery. By properly managing your inventory, you can speed up the picking and packing process for same-day deliveries.

5. Use shipping software

Shipping software helps merchants manage orders, create shipping labels, and track shipments. For example, Shopify merchants have access to a built-in shipping program called Shopify Shipping—which includes pre-negotiated discounts from major shipping carriers like FedEx and UPS, as well as smart order routing systems to automatically send orders to the most efficient fulfillment center.

Using Shopify Shipping, ecommerce merchants can add product offerings, package size information, and distinct shipping zones. Once orders ship from your fulfillment center, you can monitor real-time tracking data to confirm that deliveries arrive at their intended destinations on time.

Although basic shipping software is necessary for generating labels and tracking shipments, consider installing a third-party application specifically designed for managing same-day deliveries as well. For example, Shopify merchants have access to several same-day delivery apps on the Shopify App Store—including Getcho, Shipfy, and Stellar Delivery Date & Pickup. These same-day delivery apps integrate directly with Shopify stores to make it easy for merchants to define same-day shipping zones and cut-off times, and display those options for customers on their ecommerce stores.