What is On-Demand Delivery?

In the realm of eCommerce, customer choice is the name of the game. Buyers expect wide product selections, flexible payment methods, and numerous shipping methods when shopping online.

The market for on-demand delivery is expanding rapidly. The increasing use of online websites and application-based digital platforms contributes to this growth.

Platform-to-consumer delivery revenue is anticipated to expand at a compound annual growth rate (CAGR) of 6.76% between 2021 and 2024, according to Statista. By 2024, the estimated market volume will reach US$96,864 million. 

The on-demand delivery surge is primarily due to changing customer expectations and the desire for instant gratification, convenience, and cost-effectiveness. More delivery services can accommodate faster delivery due to burgeoning gig-economy marketplaces and improved logistical infrastructure.

Delivering products and services to customers when and where they want them is on-demand delivery. This delivery method is also best for transporting perishable items like groceries, food, and medicine.

This strategy gives the consumer control over the location and time of order delivery. It also lets them follow shipments and make schedule adjustments. The faster items are received, the more satisfied your customer will be. Forty-nine percent (49%) of shoppers say that same-day delivery makes them more likely to shop online.

Why On-Demand Delivery is an eCommerce Game Changer

Offering on-demand delivery is motivated by consumer demand, as with most retail services. Eighty percent (80%) of customers demand same-day shipping, and 61% expect their items to arrive within one to three hours of ordering.

Although previously only a small number of shops could provide rapid delivery, the COVID-19 pandemic changed all that. When the online shopping surge happened, it overloaded traditional delivery systems. Many merchants began employing on-demand delivery companies to deliver their products to clients to overcome this. Even though many supply chains no longer experience severe logistics problems, on-demand delivery is still a must-have service.

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Because of the gig economy’s cheap overhead, on-demand delivery is an economical way to meet stringent customer demand. It offers excellent process visibility as well, thanks to GPS tracking. Customers and businesses may view an order’s precise delivery and pickup times. 

For on-demand delivery services to be effective, efficient logistics are essential. Simply put, the effectiveness of on-demand procedures is directly impacted by how well a company handles its logistical operations. Managing every stage is crucial, from finding an item stored in a large warehouse with thousands of racks to delivering it.  Business owners must also guarantee a seamless last-mile delivery experience.

Logistics management must be powered by cutting-edge technology like machine learning, the Internet of Things (IoT), analytics, cloud computing, and predictive intelligence. These digital tools are a must-have to support on-demand delivery procedures.

Five Benefits of On-Demand Delivery

A typical online order from an eCommerce customer includes all their delivery preferences. The retailer’s courier partner then picks up the chosen item for delivery. Various alternatives are available to consumers, such as delivery to a neighbor, a package locker, or a different address. In short, you want maximum freedom and convenience for the customer.

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Providing on-demand delivery services has several advantages. On-demand delivery supports faster growth by serving a growing client base, cutting infrastructure costs, and promoting self-service delivery methods.

1. Access to Larger Market

On-demand delivery gives businesses the depth and breadth of reach to service large audiences across international borders. This sort of reach would not have been feasible in the past due to traditional outlets and logistics limits.

These days, three out of five customers prefer shopping at establishments that provide a variety of delivery choices. Expanding your operations gives you the flexibility to offer more delivery options for your customers.

2. Greater Customer Insight

An on-demand delivery system, made possible by modern processes, aids businesses in better understanding their customers. Online merchants can use that knowledge to forecast demand patterns and position themselves to meet customer needs best.

These deliveries use cutting-edge tools like business intelligence and deep learning, which assist companies in recognizing trends and patterns in consumer behavior. It can increase the likelihood of cross-selling and up-selling goods.

3. Better Last-Mile Delivery Management

Progressive eCommerce companies use modern distribution and logistics techniques to provide customers with “customized” round-the-clock delivery choices. This way, they can expect their packages to arrive in sync with their busy schedules.

It also fosters a strong relationship with the client and encourages repeat business and loyalty.

Despite the shift towards online shopping, logistics continues to be a vital physical interaction that affects the relationship between a business and its client. Companies can easily track delivery fleets to ensure products arrive on time. Likewise, customers can receive up-to-date location notifications to know when to expect their order to arrive.

4. Efficient Automation

Online businesses now automate and control their whole order and fulfillment cycle with previously unattainable efficiency levels. Greatly improved hardware, MIS, software, logistics, data analytics, on-demand cloud computing, and cyber-security help enhance fulfillment processes.

Shorter order cycles are ensured, enabling eCommerce companies to enter new markets quickly and effectively.

Speed is a critical component of on-demand delivery. Automating manual delivery procedures is essential to ensuring rapid delivery turnaround times. Delivery scheduling, task distribution, route planning, roster management, and dispatching can now be automated.

5. Lower Operating Costs

On-demand delivery systems maximize the efficiency of existing human resources, online, and app-led platforms. These delivery models significantly minimize the need to invest in and maintain physical stores and warehouses. Since you no longer need to pay ongoing operating costs, the budget can go to other critical business functions.

Ultimately, this benefits the company’s clients by lowering prices and maintaining competitiveness.

Getting Started with On-Demand Delivery

Integrating on-demand deliveries can be challenging at the beginning. There’s no need to worry as they can be handled with the correct procedures and technologies. In today’s demanding online shopping landscape, these best practices can reduce delivery costs and enhance customer experiences.

Save Time With Automation

When it comes to online shopping, time is money. Automation must be deployed at every level to make on-demand delivery work. Dispatching and fleet management, customer communication, driver management, and route planning must be as fast and efficient as possible. 

Thanks to automation in dispatch and routing, businesses can make the best decisions depending on variables like cost, delivery quantities, etc. Real-time integration of your systems, including external suppliers and dispatch automation software, is essential for making all these decisions in real-time. 

Offer Convenient Delivery Scheduling Options

Provide precise and simple fulfillment options, such as specifying the location and time of product delivery or pickup. You have to know the location of your goods and your fleet’s availability to calculate these timings precisely. It helps to see the parking spaces available at particular times to arrange curbside pickup.

You can automate your capacity management to offer precise and fast delivery alternatives. It is crucial to ensure that you have order fulfillment options like curbside, click-and-collect, and same-day delivery. Have all your delivery options set up within a cohesive framework that provides real-time visibility across touchpoints and various fulfillment options. 

Strong Tech Integrations

Delivery on demand means fulfilling customer requests at any time, day, or season. Businesses must be able to send drivers as needed and react quickly to consumer demands. The proper technological integration can help with this. Deliveries, telematics, warehouse management, and point-of-sale (POS) systems will all be connected. This network guarantees continuous data exchange, giving you the data visibility you need to reply to inquiries promptly. 

It’s essential if you’re collaborating with third-party logistics (3PL) companies to handle the delivery process itself. When utilizing third-party fleets, you need their technology to integrate smoothly with your own. By combining systems, you stand to enhance scheduled and on-demand deliveries, increase brand exposure, and sustain high levels of customer satisfaction. 

Rely On Real-Time Visibility

Online merchants can expedite delivery operations and save time by accessing comprehensive information. Learn where each driver is and get access to high-level data about delivery fleets in the field.

eCommerce businesses may improve their delivery management by utilizing digital barcode scanning, electronic proof of delivery, and real-time driver tracking. It is possible to manage customers proactively and collaborate with them to resolve any potential issues or concerns by precisely determining the location and time of delivery.

Clear Communication with Customers

Customers’ expectations are higher than ever. Businesses must prioritize their needs to ensure customer loyalty.

Many modern delivery applications have to let users know where their deliveries are and what stage they are in. Choose an on-demand delivery service that notifies clients when their items are routed when they leave the store or distribution center and as soon as the vehicle arrives.

Your customer should be informed of updated arrival times as soon as the driver is moving behind schedule or if something unforeseen happens. Customers won’t have to worry, and drivers and other teams won’t have to do additional work. Access to order tracking and real-time insight should be available to executives, dispatchers, fleet managers, and customers.

Modern logistics methods for eCommerce need on-demand delivery. Using sophisticated transportation tracking solutions lets your business see fleet movements in real time. Logistics stakeholders can benefit from on-demand delivery by being able to monitor shipments as they happen. Superior visibility helps fulfillment teams learn about various restrictions, such as destination and route diversions. It’ll also tell you if some of the deliveries will be delayed.

On-demand delivery is more than just using apps and digital tools to get your products out faster to customers. It involves organizing your last-mile delivery processes for quick fulfillment. A holistic approach satisfies customers’ needs for ease and speed while maximizing productivity to ship more orders with fewer resources.

ZhenHub supports on-demand delivery with trackable shipping services and multi-channel integrations. Orders get fulfilled faster with our all-in-one logistics software solutions. Sign up for free to get instant access to our online dashboard. Contact our experts to learn more about our fulfillment and logistics services.