How can Shopify Retailers Offer Same-Day Delivery?

As big box retail giants like Amazon and Walmart increasingly offer same-day delivery, often at minimal to no additional cost, consumer expectations have evolved. They now anticipate similar services from most retailers. Recognizing this, many retailers have adapted, not just to meet these heightened expectations, but also to secure the benefits that same-day delivery can bring. In fact, almost half of all online shoppers have indicated that the availability of same-day delivery greatly impacts their choice to make a purchase online.

The advantages of offering same-day delivery on platforms like Shopify encompass:

1. Higher customer conversion rates
2. Gaining a competitive edge
3. Boosted sales
4. Rapid inventory turnover
5. Enhanced customer loyalty and satisfaction

Nevertheless, matching the delivery prowess of retail behemoths can pose challenges even for seasoned businesses. Implementing same-day delivery necessitates significant effort and resources, potentially affecting the bottom line. Moreover, failing to fulfill delivery promises can alienate customers. Therefore, it's crucial for retailers to strategize their approach to same-day delivery to prevent any detrimental impact on their business.

In this article, we will delve into strategies that enable retailers to effectively introduce same-day delivery on Shopify without compromising their revenue.

How Can Shopify Retailers Offer Free Same-day Delivery While Maintaining Profits?

To achieve Shopify same-day delivery, having inventory located near the customer is vital, and fulfilling online orders directly from a physical store offers retailers a significant advantage in ensuring timely delivery. This can be achieved through:

• Same-Day Buy Online Pick-Up In Store (BOPIS) - Shopify retailers can save on shipping costs by offering Same-Day BOPIS, allowing customers to collect their orders personally. Retailers can promote BOPIS by showcasing real-time inventory availability on the product page. Furthermore, retailers can display only those stores for selection that have the items in stock and can fulfill the order. This ensures customers can effortlessly choose a convenient location for pickup based on item availability.

Fig.1: Same-Day Pickup Availability on PDP

• Ship-from-Store - Retailers who commit to Shopify same-day fulfillment but dispatch orders from a remote warehouse might face increased expenses and potential fulfillment delays, which inconvenience their customers. To sidestep such issues, it's beneficial for retailers to utilize their in-store inventory for order fulfillment on the same day, keeping shipping costs in check. Moreover, an effective Order Management System is essential, as it can intelligently route orders to the optimal location, ensuring timely fulfillment while also minimizing shipping costs.

Fig.2: Same-Day Delivery Availability on PDP

Retailers must optimize store operations when offering store fulfillment to prevent overburdening stores with fulfilling online orders. To do this, the Order Management System should provide store managers with the ability to turn online fulfillment on/off and set a maximum order value that can be fulfilled from the store each day. Additionally, safety stock management options should be available to prevent all items in stores from being promised to the online channel.

In order to make sure a store can be used as a fulfillment location, the Order Management System (OMS) needs to be integrated with ERP, POS, and WMS to gather all available inventory from various locations and sync it with Shopify. The OMS is responsible for calculating the actual Available to Promise (ATP) inventory, which takes into account factors such as safety stock, threshold quantities, reserved inventory for pending sales orders, orders in the brokering queue, and any excluded facilities. By considering these factors when sending inventory to Shopify, the OMS prevents overselling and eliminates the possibility of order rejections. This level of precision gives retailers better control over inventory and helps them avoid overselling.

When offering same-day delivery on their Shopify store, retailers should make it clear which products are available for this service at the customer's location and which are not. This prevents customers from accidentally placing orders that do not qualify for Shopify same-day delivery, which can lead to canceled orders or delayed delivery. By setting clear expectations, merchants can avoid disappointing customers and maintain a high conversion rate for Shopify same-day shipping.

To offer Shopify same-day delivery, it's important to know the customer's location. This can be done in two ways: 

1. The customer can input their postal code, or 
2. They can allow access to their system location. 

Once the location is determined, the availability of same-day delivery for that area is evaluated. This is done by checking nearby fulfillment locations and considering factors such as the store's operating hours, lead time to prepare the order, and pickup deadline. If a product is available for Shopify same-day delivery, it is displayed on the product page and in the shopping cart. This helps customers make faster purchasing decisions and helps retailers avoid false commitments, delayed fulfillment, and order cancellations. 

Fig.3: Same-Day Delivery Availability on Shopping Cart

When it comes to delivering products to customers quickly, it's important for retailers to choose reliable and efficient delivery partners. While up to 88% of customers are willing to pay extra for fast delivery, it's up to retailers to ensure that their partners can meet this demand. In addition to more traditional delivery options like FedEx, it can be beneficial for retailers to consider hyperlocal delivery services like ShipT and DoorDash. These services specialize in delivering goods within a specific geographical area, which can help retailers reach customers quickly and efficiently. By taking advantage of these options, Shopify retailers can provide lightning-fast deliveries that meet customer expectations and give them an edge over competitors.

How HotWax Commerce Integrates with ShipT for Same-Day Delivery?

HotWax Commerce collaborates with hyperlocal delivery partners like ShipT to guarantee same-day order fulfillment. ShipT operates with a 3-hour delivery buffer. So, if store associates have an order ready by 2:00 PM, HotWax Commerce swiftly notifies ShipT for pickup. However, the ShipT drivers take up to three hours to collect and deliver the order, ensuring completion by 5:00 PM. HotWax Commerce meticulously accounts for this buffer, plus the store's lead time, before promising Shopify same-day delivery.

Consider this scenario: A retailer promises delivery by 10:00 PM using ShipT, which has a last pickup time at 7:00 PM due to its 3-hour delivery window. If the store typically takes up to 2 hours to prepare an order, then orders need to be placed by 5:00 PM to meet the delivery promise. This 5-hour window combines both the store's preparation time and ShipT's delivery duration. Orders made after 5:00 PM might not be delivered on the same day, which can lead to disappointed customers. As a result, after 5:00 PM, the same-day delivery option will not appear on the retailer's Shopify product display page.

When customers opt for Shopify same-day delivery, HotWax Commerce Soft allocates the inventory for the order from a store. The order is given a line item property in Shopify that highlights the specific location capable of same-day delivery. Once this order reaches HotWax Commerce, it's dispatched to the chosen location for fulfillment.

After the store readies the order, HotWax Commerce alerts ShipT with a “Ready for Pickup” message. ShipT then processes the order, determining its eligibility for Shopify same-day delivery. Upon approval, ShipT assigns a dedicated driver for the task. As the driver collects the package, store personnel confirm the order's completion in HotWax Commerce. To keep buyers in the loop, HotWax Commerce fetches delivery updates from ShipT, swiftly forwarding tracking information to customers. This continuous relay of information guarantees transparency, nurturing customer trust and offering a top-tier shopping experience.

Fig.4: HotWax Commerce Integration with ShipT for Same-day Delivery

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In today's competitive retail environment, offering Shopify same-day delivery is no longer just a luxury; it's a necessity for success. To excel, retailers can convert stores into fulfillment hubs, implement a robust Order Management System  as well as collaborate with hyperlocal carriers and delivery partners. HotWax Commerce provides streamlined integration with carriers such as ShipT, enabling Shopify retailers to proficiently handle Shopify same-day delivery requests. By adopting this service, not only do retailers delight their customers, but they also pave the way for unparalleled growth and success in the dynamic world of e-commerce.