Tag: online shopping

5 E-commerce Trends that will Define 2023

Aiza Chaudry
Insights

2022 was a wild ride! 

Despite the headwinds, US online retail sales hit $735.12 billion (in the 3rd quarter of 2022), and as per a study by eMarketer and Statista, e-commerce sales will reach a phenomenal $6.51 trillion by 2023. (source) 

E-commerce is unquestionably here for the keeps. Much of the growth we’ll witness this year will likely be driven by the customer’s appetite for connected and seamless experiences, fast delivery, social shopping, etc.  

So, with the calendar turned to 2023, it is crucial for businesses to stay abreast of the e-commerce trends that will set the course for the year.

Here’s a roundup of the hottest trends and topics to help online merchants fortify their strategies and stay on top of their game. 

1. Providing a consistent, seamless omnichannel retail experience will be a bleeding edge in 2023.   

In 2023, frictionless ‘phygital’ retail experiences will pick up steam because customer journeys are no longer linear. Shoppers now engage with brands and shop across a multitude of channels in various ways. 

And they want to be able to move seamlessly between these channels, whether it’s in-store, online, or a combo of both. 

Data from McKinsey shows that omnichannel customers shop 1.7 times more than single-channel shoppers—and they also spend more.

In 2023, brands that provide their customers the best of both worlds will have a competitive advantage over those that stick solely to traditional retail or a singular channel. 

Major retailers such as Amazon, Walmart, Target, and Best Buy are already maximizing omnichannel retail to provide a seamless and consistent experience. Even smaller retailers are getting in on the action. 

Here are a few ways retailers can enhance the shopping experience through a connected, seamless retail experience: 

  • By offering mobile-specific features such as personalized product recommendations or location-based offers
  • Integrating features such as in-store pickup for online orders, the ability to return online purchases in-store, and delivery speed for both online and in-store 

For instance, Walmart enables same-day delivery on its website as well as in-store. You can order online and pick up your order in-store. 

  • Using data analytics and AI/ML to better understand customer behavior and preferences and to personalize the shopping experience 
  • Offering 24/7 live chat support, personalized assistance via email or SMS, or other services to help customers throughout the shopping journey
  • Making sure that the inventory is accurately reflected across all channels to avoid frustrating customers with out-of-stock items or incorrect availability information
  • Offering same delivery and pickup options across every channel to give customers flexibility and convenience

2. E-commerce sales in 2023 will be significantly driven by mobile commerce.

Smartphones are a go-to option for most shoppers, whether it’s browsing for products, making purchases, or tracking their orders, etc.  

Factors like social commerce catching on and more brands enabling mobile-first experiences will drive mobile commerce sales to $4.5 trillion, or 69.9% of total retail e-commerce sales.

Let’s dive into the details to picture this trend better.

a) Growth of social commerce 

Do you know how much time an average user spends on any of the top 5 social platforms? two and a half hours per day. 

Initially, social media platforms served as a place for shoppers to window-shop. But within the last couple of years, the major social platforms like WhatsApp, Instagram, Facebook, Snapchat, Pinterest, and now TikTok have expanded their in-app shopping options, making in-stream commerce a bigger focus. 

“But are consumers actually buying products while browsing social media?”

  • About 1 million users regularly buy from Facebook Shops every month. (Statista)

And, if not experienced, we’ve all heard or skim-read about live selling. Although the US live-selling market is still in its infancy, with major players like Walmart, Nordstrom, and Macy’s experimenting with live shopping on their websites, it is expected to hit $25 billion in 2023.

So, whether you decide to sell directly through social media or not, these channels should not be overlooked in your e-commerce strategy in 2023.

b) The ease of buying that comes with mobile-first experiences & personalization

Mobile is changing the way we shop. The evolution of mobile-first and personalization features like one-click checkout, BOPIS, personalized recommendations, scheduleable delivery options, and mobile payment solutions such as Apple Pay, PayPal One-Touch, Visa Checkout, Amazon Pay, and Venmo have made mobile shopping more convenient and accessible compared to a few years ago. 

Mobile devices now make up 71% of all retail traffic, and they generate 61% of online shopping orders. (Statista.)

That’s substantial growth! 

3. Delivery speed and delivery certainty remain a top priority for shoppers.

Whether customers shop in-store or online, they want convenience, speed, and certainty—a behavioral shift caused by Amazon during the pandemic. And this isn’t changing in 2023. 

  •  According to a study by Digital Commerce 360, 80% of online shoppers in the US want same-day shipping options. 
  • Meanwhile, in another study, nearly 70% of consumers said the ability to track orders was one of their top three considerations when buying a product online, and 56% said it was a top consideration when ordering a luxury item. 

Consumers have come to expect quick and efficient delivery of their online purchases, and companies that are able to offer fast delivery options will have an advantage over those that do not.

Fast and convenient delivery options are also proven to boost conversions for businesses. ROI data from Ohi’s analysis of partner brands highlights that brands that delivered orders fast with Ohi’s same-day and two-hour delivery had 30% higher repeat purchase rates than standard UPS/FedEx. 

Here are a few ways businesses can enable fast fulfillment: 

  • Streamline their fulfillment processes by investing in new technologies and micro-fulfillment. (Setting up a distributed network of MFCs is not without challenges. And most businesses simply don’t have the time or budget to manage all this on their own.) 
  • The other way is to partner with a reliable instant commerce partner such as Ohi to ensure that orders are delivered fast, on time, and in good condition. Learn more here.

4. Sustainability will be on your customers’ shopping list. 

Consumers are becoming increasingly aware of the environmental and social impacts of their purchases, and this trend will likely influence the e-commerce landscape in 2023. 

A February 2022 survey of 16,000 global consumers found that 51% of people say environmental sustainability is more important to them today than it was 12 months ago. (source)

As more customers begin to demand sustainable products and delivery methods, we will see more businesses invest in sustainability. Top brands, including IKEA, Nike, Patagonia, Ralph Lauren, Lululemon, and Chanel, are already taking steps to reduce their carbon footprint and promote sustainable practices.

A 2022 Gartner survey of CEOs found that about 20% of CEOs and other high-level business leaders are also prioritizing social responsibility and environmental, social, and governance (ESG) issues in their organizations. This is the highest it has been in the past 10 years. (source)

Here are some ways businesses can be more sustainable:

  • Sell products made with more sustainable materials.
  • Invest in more eco-friendly packaging materials.
  • Allow shoppers to choose more eco-friendly shipping options such as Ohi’s sustainable instant delivery. It’s green and sustainable, because products are delivered via foot couriers or electric scooters from our distributed network of MFCs, located closer to customers.  

Moreover, Ohi deliveries were shown to be 22x more eco-friendly than next-day air and 5x more sustainable than 3-5 day ground. (Stanford Study)

  • Make it easy for people to recycle items, i.e., Nike’s sustainable and recycled shoes are a great example.
Puma launched ‘Clever Little Bag’ to replace the traditional shoebox, using 65% less cardboard. (source: the packaging cookbook)

5. Post-purchase experience will be a linchpin for brands. 

Make the customer the hero of your story. — Ann Handley

Most brands are so focused on increasing sales conversions that they completely neglect the post-purchase phase of the buyer’s journey. The post-purchase phase is where you make your customers fall in love with your brand and make a repeat purchase.   

Because 91% of customers say they won’t do business again with a brand that left them unhappy. (source)

By focusing on the following elements of the post-purchase experience, online retailers can create a happy and satisfying shopping experience for their customers:

  • Easy and convenient return and exchange policies
  • Providing timely and accurate order tracking and delivery updates
  • 24/7 customer support, and live chat features
  • Personalized communication and follow-up
  • Options for fast and schedulable delivery or pickup in store
  • Sustainable packaging of products
  • Include user-friendly product instructions and documentation within packaging and send out via email. 
  • Ask for feedback via email, SMS, or phone call 

In 2023’s competitive e-commerce landscape, a powerful post-purchase experience will be pivotal for merchants to differentiate themselves from their competitors as well as attract new customers. Nothing works like word-of-mouth marketing. 

In 2023, It’s Go Big or Go Home.

In the end, it all boils down to customers. By understanding and analyzing customer behavior, retailers can tailor their marketing and sales strategies to better meet the needs and preferences of their target audience. This, in turn, will help drive e-commerce growth, increasing customer loyalty, repeat purchases, and overall sales.

About 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.

The Instant Gift Guide is Here!

Ohi Team
Other

🎉 We’ve just dropped our first-ever holiday gift guide, filled with amazing gifts and party items Ohi can have delivered in as little as two hours — right up until December 24th!

Feast your eyes on The Instant Gift Guide 🎄and have a holly, jolly holiday! ❄️

Check it out here: 👇
ohi.com/gift-guide

5 Ways for E-Commerce Teams to Improve Marketing Efficiency

James Hsu
Insights

A return to post-pandemic normalcy and the looming threat of recession have been challenging for some e-commerce teams in 2022.

Yet, history shows us how the best businesses can thrive when the circumstances are seemingly against them. 

For example, during the pandemic, restaurant chains that embraced digital ordering and added new capabilities like curbside pickup or contactless delivery mitigated the worst of it and sometimes even thrived. Many that didn’t embrace mobile ordering at all have since been shuttered.

It can be easy for marketers to stop advocating for new strategies when the cards are seemingly stacked against them. However, staying agile and making the right investments can help e-commerce marketers thrive against the odds. 

5 ways for e-commerce teams to improve marketing efficiency

1. Focus on customer loyalty and improving CLV

On average, repeat customers spend 67% more in the third year of their relationship with a company than they do at prior stages. Small increases in customer retention can lead to large increases in profit. 

Given that it’s harder than ever to acquire new customers, fostering the health of your existing customer relationships can be far more productive than throwing ad dollars at people who have never tried your product. Improving customer loyalty in this way can drive meaningful improvements in your CAC:LTV ratio, ROAS, or whichever metrics you use to understand marketing efficiency.

But how do you increase customer loyalty? 

Traditional loyalty programs that incentivize increased engagement and more frequent purchasing (e.g. points programs) and membership perks are an obvious starting point, but there are many other ways to drive customer loyalty, too. Let’s go over some of them.

2. Offer “fast and free” same-day delivery

Research from Ohi (based on actual anonymized client data) shows a substantial boost to repeat purchase rates and customer lifetime value (CLV) for customers who chose instant delivery with Ohi versus those whose orders were fulfilled with standard shipping.

What’s more, merchants can leverage instant delivery as a selling tool, boosting website conversion rates.

Together, these effects work in tandem to help marketers drive improved return on ad spend (ROAS) by delivering more bang for the buck.

Read more about how “fast and free” shipping has an outsized effect on shopper behavior.

3. Reduce CAC by weeding out low-performing ads/programs and focusing on best-performing audience segments

When times are good, marketers tend to cast a wider net. More programs, more campaigns, more ads. When conversion rates go down, it’s important for marketers to reprioritize efficiency.

  • Go through your programs, campaigns, and ad sets to determine which are actually bringing in new customers and which are wasting valuable dollars and ad impressions. Trim everything that isn’t working, or pivot into more relevant messaging.
  • Use split testing to boost performance further, even for ads that are already performing reasonably well. See what reduces CAC for your ads by experimenting with creative, copy, CTAs, and audience targeting. Once you’ve made some optimizations and have enough performance data to review, rinse, and repeat.
  • Targeting: As the times change, so too can your ideal customer profile (ICP). Continually update your understanding of who (demographics, interests, etc.) is best suited for your products, and ensure your advertising campaigns are optimized to target your ICP segments, specifically.

4. Recoup lost sales with remarketing strategies

Did you know that the average documented cart abandonment rate is 69.99%? That’s right — seven out of 10 shoppers that add something to their shopping cart don’t go on to complete their order.

Cart abandonment can be extremely damaging to your company’s bottom line and marketing success, causing both acquisition and retention costs to skyrocket.

Shoppers who have recently left the site without completing their purchase can be retargeted using techniques such as these:

  • Send personalized abandonment email campaigns with enticing offers such as free same-day shipping or a discount to get them to complete the purchase. “Your cart with (Product Name) is still waiting for you.”  
  • Similarly, you can run customized display ads to re-engage cart abandoners by letting them know they still have items in their baskets and teasing that they’ll have a special offer upon their return.
A remarketing email from Tipsy Elves highlighting a first-time discount.

5. Offer an excellent post-purchase experience

Increasing revenue while lowering costs is near the top of every company’s priorities. But in order to accomplish that, your customer experience must be on point.

While e-commerce teams and marketers understand the importance of the customer experience, they often over-prioritize everything leading up to the purchase decision.

After all, getting a new customer to order one time means a lifetime of blissful re-ordering, right?

Not quite. The key to boosting your revenue over the long term is heavily dependent on the post-purchase side of the customer experience.

What is a customer’s actual experience with your product, how quickly did it arrive, and how have they successfully incorporated it into their lives?

Here are a few ways to enable an amazing post-purchase experience: 

  • After a purchase is made, point customers to a “thank you” page that goes beyond the “order confirmation” function. Take the opportunity to thoughtfully address how this is more than a transaction for your team – how every order contributes to something bigger and more meaningful, e.g. societal impact, a movement to do X, Y, and Z.
  • Send out follow-up emails with product care tips, how-to guides, or interesting use cases to help customers incorporate your product into their lives successfully.
  • Encourage customers to join and interact with your community of happy customers.
  • Reminding customers to restock (e.g.: 50 days into a two-month supply) is another excellent way to provide value, stay in touch, and increase CLV.
  • As discussed earlier, ensure a fast and reliable delivery experience. Ohi’s research shows that providing same-day delivery results in a significant boost to CLV and repeat purchase rates, suggesting the importance of last-mile delivery within the overall post-purchase experience.
  • Give customers the option to schedule and reschedule deliveries (e.g.: Ohi allows customers to schedule the delivery in a four-hour window, up to seven days out), especially for subscription orders. Delivery scheduling allows customers to enjoy e-commerce on their terms while reducing the risk of package theft and removing much of the friction that receiving a package can present.

While the post-purchase experience is not traditionally a focus for marketing teams, advocating cross-functionally for some of these best practices can dramatically improve overall marketing efficiency, and that’s reason enough to have the conversation.

About 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.

Oh, Hi Florida

Ohi Team
News

We’re excited to announce that two-hour, same-day, and next-day delivery are now live in Florida.

Ohi’s latest expansion initiative brings instant delivery (next-day or faster service) to the majority of residents in the Sunshine State!

If you have any questions or would like assistance enabling instant delivery for your Florida customers, please reach out to your assigned Ohi rep or contact us here.

Checklist: How to Create the Ultimate E-Commerce “Post-Purchase Experience”

Ohi Team
Free Resources
DOWNLOAD FREE

Increasing retention rates by just 5% can increase profits more than 25% in some markets. (source: Frederick Reichheld of Bain & Company)

In e-commerce, optimizing the “post-purchase experience” – or what happens after checkout – is critical to turning first-time customers to repeat buyers, growing order frequency and AOV, and subsequently reducing operating costs.

Download our checklist to understand best practices relating to:

  • How to set up post-sale communication/engagement
  • How to create a delightful delivery experience 
  • How to offer a high-end customer service and support 
  • How to win customers with gifts and incentives

Instant Delivery: A Quick Guide for Retailers

instant delivery
Aiza Chaudry
Insights

85% of online shoppers look for better options when delivery speed is too slow.

Within the last couple of years, delivery speed has become a top priority for online shoppers and a huge opportunity for retailers. The evolving preferences of the savvy shoppers, their increased reliance on online shopping and need for instant gratification have propelled the rise of various instant delivery platforms like Ohi and marketplaces like GoPuff, Instacart. These next-generation platforms take the delivery speed and convenience of Amazon, Walmart, and other retail giants, and deliver a better and faster approach to instant delivery.

So, what is instant delivery, and why is it a must-have for your success as a retailer? 

What is instant delivery?

Instant delivery isn’t a novel concept; many of us have already experienced ultrafast delivery via a quick and easy meal ordered through Grubhub, DoorDash, Uber Eats, or whatever your go-to meal delivery app is. 

According to Chris Walk, the Founder and CEO of Omni talk, the idea of instant delivery is based on ‘the universal truth of speed,’ according to which, when given a choice, people will always choose to get something as fast as possible instead of waiting.

Before sub-two-hour delivery entered the game and pushed the reset button on customer expectations, same-day delivery was the fastest delivery option, and 41% of online shoppers happily paid for the service. 

However, unlike same-day delivery, where products can be delivered within 24 hours, instant delivery is an ultrafast delivery that generally happens within two hours or as fast as 15 minutes from the customer’s time of order. 

It is e-commerce fulfillment on overdrive, made faster and better with advancements in e-commerce technology. Instant delivery is very much related to the broader quick commerce model.

Ultrafast delivery businesses like GoPuff and JOKR focus on products meant for immediate consumption that customers frequently want immediately. 

Instant delivery examples you might be familiar with

  • GoPuff – with facilities strategically placed across hundreds of markets, GoPuff maintains an extensive network of driver-partners, allowing it to deliver quickly within 30 minutes. Each brand’s products are sold alongside hundreds of other brands in GoPuff’s own marketplace. 
  • Walmart express delivery – customers get ordered items on their doorsteps in two hours or less. The express delivery is available on many Walmart purchases, including groceries, apparel, electronics, and other essentials.
  • Amazon two-hour – previously just for Prime Now users, two-hour delivery is now available on groceries and many other goods through the Amazon app or website.
  • Instacart delivery – picks and fulfills orders from third-party retailers’ brick and mortar stores in as little as 30 minutes.
  • Ohi instant delivery – Ohi’s hyperlocal micro-fulfillment centers allow direct-to-consumer brands to offer instant delivery in two hours or less.

Instant delivery stats

  • 68% of consumers said fast shipping would lead them to place an online order, according to a February 2021 Digital Commerce 360 survey. (Digital Commerce 360).
  • Around 61% of Nielson IQ’s latest survey participants said they would like to have their orders delivered as fast as possible.(Supermarket News)
  • Meanwhile, 65% of shoppers in another study said they would be willing to pay more for faster and more reliable deliveries. (Business Wire)
  • 55% of customers on average will switch to a competitor that offers faster delivery service. (RetailWire)
  • According to Ohi’s analysis, two-hour delivery is associated with 61% higher repeat purchase rates. (Ohi)
  • 85% of consumers in a study said they search elsewhere for better options when delivery speeds are too slow. (Flexe)
  • The same study also revealed that one of the top two reasons for shopping cart abandonment is that delivery speeds weren’t fast enough. (Flexe)
  • In addition, a 2021 global consumer insights survey conducted by PWC also shows that fast delivery is shoppers’ #1 overall consideration when buying online (ranked top three by 41% of respondents). (PWC)

How does instant delivery work?

Customers and retailers alike love a lightning-quick delivery service. But, have you ever considered how instant delivery services deliver, say, a carton of milk or a pack of sodas so fast?

There are a few different ways instant delivery platforms could operate to deliver your products to your customer’s doorstep in less than two hours. Instant delivery platforms and marketplaces can either run their own dark stores/fulfillment centers or fulfill orders from third-party retailers’ existing brick and mortar stores. Once a shopper places their order, they are fulfilled at the closest fulfillment center or third-party retail store by workers (“pickers”) and delivered by local couriers, often on bikes/scooters.

 Here’s a quick rundown of different models:

1. Vertically-integrated instant delivery model, i.e., GoPuff

In this model, instant delivery platforms like Jokr and GoPuff pick the ordered products from their dark stores or MFCs to deliver typically within 10–30 minutes.

Technicalities could vary; however, here are a few salient features of a vertically-integrated model:

  • These marketplaces run their own first-party MFCs, typically one in each neighborhood, similar to dark stores.
  • Employees pick up orders, and couriers deliver them.
  • Running the first-part MFCs is also less expensive compared to the hefty cost of renting space in retail stores.
  • Following a customer’s order, workers (called “pickers”) fill it at the appropriate micro-fulfillment facility, and a local courier (typically on a scooter or bike) fulfills it.

2. Third-party delivery platforms, i.e., Instacart  

These delivery platforms function on an “asset-light” model. For these platforms to operate, they don’t need to set up fulfillment centers, purchase inventories, or establish supplier relationships before expanding to a new city. Compared to the other two models, these are also far easier to scale. 

  • These delivery businesses do not need fulfillment centers or dark stores to operate. 
  • They pick products and deliver them directly from third-party physical retail stores. 
  • After an order is placed, a personal shopper goes to the store (or multiple stores) to pick up everything, then delivers it to you at your doorstep (typically within an hour or two).

3. Direct-to-consumer delivery model, i.e., Ohi 

This model is specifically for DTC brands or e-commerce retailers that are looking to add a DTC channel. The direct-to-consumer (D2C) instant delivery providers like Ohi provide instant delivery and micro-fulfillment solutions specifically for DTC sellers or e-commerce businesses looking to set up a DTC channel.

Although this model sounds very similar to the vertically-integrated model, they have some dissimilarities. 

  • For instance, under the DTC model, customers will place orders directly on a brand’s DTC website, rather than on a marketplace website/app.
  • The instant delivery service takes care of the back-end order fulfillment functions.
  • These services have dedicated MFCs hyperlocal to the consumer, enabling instant delivery for their clients.
  • In addition to the above, instant delivery platforms like Ohi use eco-friendly transportation for last-mile delivery.

For many direct-to-consumer e-commerce brands, pairing with an instant delivery provider like Ohi is the only viable option to meet their online customers’ demands and stand toe-to-toe with Walmart and Amazon when it comes to delivery speed. The reason is that many DTC-focused businesses lack the network of retail stores needed to pull off instant delivery on their own. That’s where Ohi’s DTC-focused website integrations, micro-fulfillment network, and post-purchase experience centered on instant delivery come into play.  

Here’s how Ohi’s quick delivery works:

Instant delivery vs. traditional 3PLs

All this instant delivery talk begs the question, how are instant delivery platforms different from third-party logistics companies? 

Instant delivery and traditional 3PLs are poles apart in terms of delivery speed, transportation, and approaches to warehousing. Here’s a breakdown of the differences between quick delivery and traditional third-party logistics.

  • Instant delivery typically relies on micro-fulfillment centers (MFCs) positioned within densely populated areas, enabling ultrafast deliveries, i.e., within 15 minutes to two hours after placing an order. Whereas traditional 3PLs deliver in 3 to 5 days, their fastest expedited delivery is typically two-day or the next day.
  • Traditional 3PLs rely on massive warehouses, typically as large as 300,000 square feet. On the other hand, instant delivery platforms rely on micro-fulfillment centers that are much smaller – usually 2,000 to 5,000 square feet – located hyperlocal to customers in the densely-populated areas of major cities.
  • Another difference is the form of delivery chosen for the last mile. For transportation, traditional 3PLs rely on bigger delivery vehicles, since orders are delivered in huge batches owing to the increased travel distance. However, because of the vastly reduced distance between MFCs and the end customer, instant delivery providers often use eco-friendly two-wheeled vehicles such as bikes, e-bikes, or scooters.
  • Depending on the size of the business, a typical e-commerce store may have 15,000 or more SKUs. Amazon, for example, has the potential to store about 350 million SKUs, including both fast-moving and slow-moving items. On the other hand, Instant delivery services rely on micro-fulfillment facilities with a capacity of 2,000 to 4,000 SKUs (total SKU count for all brands within the MFCs) of typically fast-moving items.

Types of businesses instant delivery works best for?

While it’s true that instant delivery has opened up a lot of doors to brands that couldn’t otherwise offer the convenience and speed of two hours or less delivery, it is not a one-size-fits-all solution. 

Here are three factors to help you determine if instant delivery is the right fit for your business:  

1. Brands that have a higher-order volume and lower SKU count 

Instant delivery is a good fit for products with a high order volume or products that sell fast and have a lower SKU count. As instant delivery providers rely on micro-fulfillment centers, a larger SKU count would reduce shelf space, therefore, it is ideal for fast-moving consumer goods.  

With the localized nature of MFCs, instant delivery doesn’t lend itself particularly well to highly specialized items like bespoke crafts, artisan goods, or customized products.

2. Brands that sell consumables or products that are needed right away

Instant delivery works well for products that customers want or need on an urgent basis. Products including food, beverages, beauty, personal hygiene, fem-care, or home-testing kits – the kind of products your customers might find at a local convenience store or pharmacy – are ideal for instant delivery.

3. Brands with non-bulky items 

Delivering bulky items such as large electronics or furniture is far from possible on a bike or scooter, which is the mode of transportation for many instant delivery businesses.

In addition, 15 minutes or two-hour or less delivery services use localized micro-fulfillment centers with a smaller storage capacity. Hence, it would be pointless to cram the smaller space with bulky goods that won’t turn fast.

For this reason, instant delivery works best for non-bulky products that can be packed and shipped quickly without a lot of manpower or special handling. This means that a carton of milk or a can of soda can be delivered with instant delivery; however, bulky items such as furniture, large electronics like TVs, and larger appliances are a no-go.

So, does instant delivery makes sense for your e-commerce business? 

Benefits of instant delivery

1. Cut down on delivery time and last-mile costs

The longer an order has to travel to get to the customer’s doorstep, the more chances for things to go wrong in that last mile, such as order mixups, traffic jams, and other delays.

As opposed to traditional 3PLs, instant delivery companies can get goods into the hands of customers in a relatively short time. As quick commerce businesses like Ohi rely on micro-fulfillment, the last-mile transportation times and costs are reduced considerably, making it more feasible to offer two-hour or less delivery. This converts to a positive post-purchase experience, enhanced consumer satisfaction, and a significant return on investment for e-commerce businesses.

3. Ensure operational excellence  

Instant delivery platforms like Ohi use modern technologies (including AI or machine learning forecasts) to provide your DTC with inventory accuracy and on-time delivery rates that outperform the conventional third-party logistics providers. Platforms like Ohi also integrate with various last-mile delivery providers to make sure your customers get fast and efficient delivery that translates into higher customer happiness and fewer or zero CX support inquiries on late/missing deliveries.

3. Potential for brands to be sustainable

According to Shopify, consumers demand fast, free, and sustainable delivery at checkout. In addition, nearly 72% of customers want brands they shop at to use sustainable packaging. According to another study, around 80% of customers say sustainability is essential. 

Not only does an instant delivery solution have the potential to meet your customers’ sustainability demands, but as mentioned earlier, it can also translate into better delivery and post-purchase experience as well. 

As instant delivery platforms rely on hyperlocal micro-fulfillment centers, there is very little reliance on fuel-based transportation or wasteful exterior packaging materials, which together minimize your brand’s carbon footprint.

Instant delivery providers like Ohi enable their partner brands to offer carbon-neutral delivery to their eco-conscious customers.

Instant delivery is transitioning from a nice-to-have to a must-have

Simply put, two-day and next-day delivery is not fast enough for the modern consumer. Therefore, growth-minded e-commerce retailers are increasingly considering methods of enabling instant delivery, as this is a proven strategy to improve their customer experience and enable enhanced customer acquisition and retention.

About 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.