Key Takeaways
- Too many DTC sellers focus on the pre-purchase experience with slick apps and marketing. Neglecting the post-purchase experience is a missed opportunity to drive repeat purchases.
- By using powerful AI software, Ohi predicts where a purchase will take place and positions products nearby so delivery is shockingly quick and flexible.
- E-commerce shipping and packaging are very harmful to the environment — Ohi’s core principle of sustainability means more packages delivered from hyperlocal micro-warehouses in reusable totes, instead of planes, trucks and wasteful cardboard.
Let’s face it, Amazon has set the standard — consumers expect to receive purchases in two days — longer shipping times are no longer acceptable.
That’s a tall order for many DTC Shopify merchants, which are still bogged down by long shipping times. The result: Amazon continues to dominate.
But it doesn’t have to be that way.
Instant delivery is possible for DTC e-commerce companies. It goes without saying that it will impress the heck out of your customers who will be sure to come back for more.
On an episode of the eCommerce Fastlane podcast, Ohi Founder and CEO Benjamin Jones talked about how faster delivery is integral to the future of DTC e-commerce and how Ohi is making it possible — and sustainable — for a range of merchants.
The secret weapon powering instant e-commerce
We’ve crunched the numbers. Brands that partner with Ohi realize significant ROI via improved customer satisfaction, an average increase in conversion of 28%, and increases of up to 120% in repeat purchase rates. Consumers who order with Ohi have up to 35% higher LTV for brands than those who choose a UPS/FedEx shipping option.
How is this possible?
The “secret” is micro-warehousing. Traditional warehouses are a relic of old-world logistics. They’re very large and due to their size, they’re often located in the middle of nowhere. This is inefficient in so many ways, and it also presents a challenge for quick shipping times.
Micro-warehousing is a different approach. Mico-warehouses are smaller than traditional warehouses, which means they don’t need to be housed too far from major commercial areas.
In fact, micro-warehouses take advantage of unused retail spaces and old commercial spaces, repurposing them into small distribution hubs. This means products can be warehoused directly in the cities where orders are placed, allowing for fulfillment to happen in a matter of hours, rather than a few days.
| The ROI of instant delivery (sub 2-hour) has become hard to ignore. |
And, even better, fulfillment isn’t dependent on UPS or FedEx — Ohi works with pools of local drivers that can fulfill these orders, taking advantage of the existing local courier system.
Before we get into the markets that benefit most from instant e-commerce, let’s look at some of the things that position Ohi to deliver two-hour delivery windows — and to do so in a way that doesn’t harm the planet.
Predicting future orders with AI
Our micro-warehousing is also backed by vital technology to make sure products are in the right places at the right times. How do we do that? With the power of AI-based optimization.
Our AI will predict where demand is and where orders will be placed before they happen, allowing us to allocate inventory around our network of micro-warehouses. This tech, combined with our network of last-mile providers, is what gets your product to your customers in two hours.
Instant e-commerce doesn’t have to kill the planet
Making things better for consumers and businesses is critical — but not if it comes at the expense of sustainability, a core principle of Ohi.
The fact is that e-commerce hurts the environment. From trucks and planes to cardboard and packaging material, the industry comes with a lot of unsustainable baggage.
Ohi promises carbon-neutral delivery in three main ways:
- Inventory is kept hyperlocal — Since Ohi uses micro-fulfillment centers (MFCs), deliveries only travel a short distance to get to their destination.
- Eco-friendly transportation — Ohi uses bike/e-bike/scooter couriers and foot couriers to further minimize our carbon footprint in urban areas.
- Minimal/re‑usable packaging — Shorter travel distances enable a reduction in wasteful (and expensive) packaging. Ohi encourages the use of eco-friendly reusable totes for two-hour and same-day orders.
- Carbon offsetting — Through our partnership with EcoCart, we take the residual carbon footprint (after the above measures) and offset it, resulting in carbon-neutral ecommerce fulfillment.
Markets that flourish with instant delivery
At Ohi, we work with a range of consumer packaged goods. Things like food and beverages, alcohol, pet food and supplies, baby supplies, and health products — these are items the consumer wants and needs quickly. And that’s perfect for instant delivery.
How does it work? Ohi integrates right into your Shopify and will display a widget to your customer if two-hour delivery is available based on your customer’s location. If it’s not available, we won’t offer it. It’s that simple.
Merchants often wonder about charging more for fast delivery. Again, Amazon has set consumer expectations high, which is why we believe offering instant delivery for free is essential. To enable this, we provide flat-rate pricing to help make merchant costs more predictable.
Instant, free delivery can add millions of dollars of extra revenue every year — and we want to make it as easy as possible for you to add to your bottom line!
👉 This is based on an episode of the eCommerce Fastlane podcast featuring Ben Jones of Ohi.
👉 At Ohi, we’ve flipped the script for e-commerce fulfillment, transforming it from what is traditionally seen as a cost center into a growth engine. Brands join the Ohi platform to deliver powerfully fast, brand-focused, and memorable post-purchase experiences that enable them to grow. Want to learn more about how Ohi enables instant commerce? Get in touch today.