Insights to Help Your Business
The Competitive Edge of Fast Delivery: Why Speed Matters for SMBs
In today’s fast-paced, on-demand economy, consumers expect more than just high-quality products—they demand convenience. Fast delivery has shifted from a perk to a non-negotiable for businesses that want to remain competitive.
A recent UPS Capital survey revealed that 67% of consumers are likelier to shop with businesses that provide same-day or next-day delivery.1 This means that this offering is no longer just a bonus for customers; it's a competitive necessity.
However, meeting these high expectations can be a daunting challenge for SMBs. Let's explore today’s consumer shipping preferences, what these trends mean for SMBs, and how they can keep up with demands.
A Customer Loyalty Killer
Shipping delays can sabotage customer loyalty. 60% of respondents said they would avoid a retailer after a negative delivery experience, with 11% refusing to purchase again. This underscores the importance of reliable and efficient shipping services.
Transparency is equally important. Consumers expect real-time tracking and package protection, now seen as essential features of a seamless shopping experience.
Local Retailers' Secret Weapon
Local SMBs have a golden opportunity to outshine larger online retailers by offering same-day delivery. 66% of consumers surveyed said they are more likely to shop locally if small businesses provide this service. Over a third (37%) of respondents would pay more for a product if same-day delivery was available.
This trend presents a unique opportunity for local retailers to outcompete larger online retail giants. By offering same-day delivery, local SMBs can provide convenience to attract customers who might otherwise opt for shopping with larger online retailers.
Delivery Dilemmas for SMBs
While offering same-day and next-day delivery is appealing, it’s often easier said than done. SMBs face several obstacles, including limited resources and the high costs associated with expedited shipping. Unlike large corporations, smaller businesses may lack the necessary logistics and infrastructure to fulfill rapid delivery promises efficiently.
To overcome these hurdles, SMBs should consider:
- Strategic partnerships with local delivery services to extend their reach and improve efficiency.
- Invest in efficient inventory management systems to keep stock levels in check and fulfill orders faster.
- Explore innovative delivery models like dark stores or micro-fulfillment centers to streamline shipping.
Leveraging Technology for Delivery Success
Technology can also play a crucial role in helping SMBs meet fast delivery demands. Advanced shipping software can optimize routes, improve tracking accuracy, and streamline customer communication. Mobile apps can provide real-time updates and allow customers to schedule deliveries conveniently.
Additionally, predictive analytics can help make smarter shipping decisions. SMBs can identify addresses at high risk of delivery issues (e.g., porch piracy) and choose an alternative delivery option (e.g., UPS Access PointÒ location) to reduce losses. This helps improve customers’ peace of mind that their delivery will be intact and on time, which surveyed consumers considered the most important attribute in their shipping experience.
The Bottom Line
The demand for fast and reliable delivery has become critical in today's competitive marketplace. While this trend presents obstacles for small businesses, it offers unique opportunities to differentiate themselves and attract customers.
By strategically investing in technology, partnering with trusted sources, and prioritizing customer experience, SMBs can overcome these challenges and position themselves for long-term success.
Interested in upgrading your shipping strategy? Contact us today to learn how we can help you deliver faster and grow your customer base.
1All statistics derived from an online survey completed by 1,000 18+ U.S. adults. It was commissioned by UPS Capital and fielded by Dynata, a global market research firm, in September 2024.
