Tag: two-hour delivery

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.

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

2-Hour Delivery Is the Future of DTC Sales — How Ohi Enables Instant Commerce 

two-hour-delivery
Ohi Team
Insights

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:

  1. Inventory is kept hyperlocal — Since Ohi uses micro-fulfillment centers (MFCs), deliveries only travel a short distance to get to their destination.
  2. Eco-friendly transportation — Ohi uses bike/e-bike/scooter couriers and foot couriers to further minimize our carbon footprint in urban areas.
  3. 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.
  4. 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.

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.

Ohi Partners with Beverage Makers Cann and Magic Mind to Offer Ultrafast Local Delivery

Ohi Team
News

New York, NY – Ohi, the next-generation instant commerce platform that enables brands to meet their customers’ expectations of superfast delivery in under two hours, today announced it has partnered with beverage makers Cann and Magic Mind to offer ultrafast local delivery to the brands’ customers in selected markets. Consumers in major metro areas across Los Angeles, San Francisco, Chicago, New York, and New Jersey can now order two-hour, same-day, and scheduled delivery of Cann’s bubbly, all-natural Unspiked non-alcoholic social tonics. Consumers in Los Angeles, San Francisco, and New York can now order Magic Mind, the world’s first productivity drink, and receive their order in less than two hours or schedule their delivery for whenever is most convenient for them.

“So many consumers are looking for alternatives to alcoholic beverages to enjoy when relaxing or socializing and for energy- and performance-boosting drinks that help keep them focused,” said Ben Jones, Founder and CEO of Ohi. “We’re proud to partner with both Cann Unspiked and Magic Mind to offer an incredible, on-brand instant commerce experience that includes superfast, environmentally friendly delivery of their products to customers and subscribers and to help them reach, convert and retain new audiences.”

Cann Unspiked 

Cann Unspiked is a refreshing, bubbly tonic that combines fresh, not-from-concentrate juice with an adventurous herbal twist and a touch of agave nectar for sweetness. The low-calorie, carbonated beverages contain no alcohol, offering a fresh drink experience that’s unexpected, uncomplicated and unashamed. Made with only natural ingredients, Unspiked is available in 12-packs of Lemon Lavender, Blood Orange Cardamom, Cranberry Sage and Grapefruit Rosemary flavors as well as a Variety Pack. Unspiked subscribers can choose delivery of their favorite flavors every 15, 30, or 60 days.

“We’re thrilled to partner with Ohi to give our customers in a growing number of neighborhoods an excellent Unspiked experience that includes local delivery on their preferred timeline, whether that’s within two hours or on a regular schedule under one of our subscription plans,” said Greg Schatell, Senior Manager of Product Strategy for Cann. “We chose Ohi because the company’s data platform and micro-warehouse network help us meet the instant delivery needs of the majority of our customers in major urban areas and we’re looking forward to expanding that delivery footprint throughout 2022.”

Magic Mind

Each shot of Magic Mind contains a magical combination of 12 active ingredients designed to stimulate focus, creativity, energy, and motivation while decreasing stress and post-exercise inflammation in the body. For a long-term boost in cognition, energy, memory, and mood, Magic Mind recommends drinking the beverage consistently for 7–10 days. Magic Mind subscribers can choose to receive deliveries of 15 or 30 bottles every month.

“Years of scientific research went into developing Magic Mind, so keeping our brand story and product benefits front and center throughout the entire post-purchase experience is important to us—and Ohi allows us to do that,” said William Hicks, President of Magic Mind. “We’ve also always worked to offset our supply chain emissions and even offer carbon offsets to our customers. By partnering with Ohi, we’re able to stay true to our sustainability mission by offering near-instant local delivery of Magic Mind to our customers without having to pay for overnight shipping or create and use any extra packaging.”

Ohi’s nationwide network of micro-fulfillment centers allows brands to offer best-in-class post-purchase experiences while retaining complete control of their brand story, data and customer relationships. The company’s inventory and order management platform provides SKU-level demand insights that drive efficiency and savings for brands, while its reusable, sustainable packaging helps merchants reduce their carbon footprints.

For more information, visit Ohi.com.

About Ohi

Ohi is the leading instant commerce solution for direct-to-consumer and enterprise brands looking to grow their business by enabling powerful post-purchase experiences. Leveraging its proprietary, data-driven inventory management technology and robust microwarehouse platform to forward position inventory within city centers, Ohi enables brands to offer a premium, environmentally responsible, instant or scheduled delivery experience to their customers.

About Cann Unspiked

Cann Unspiked is the only non-alcoholic drink that loves to party. Founded in Los Angeles by Stanford and Harvard graduates Jake Bullock and Luke Anderson, Cann Unspiked delivers the same award-winning flavor as traditional Cann (#1 selling micro THC-infused beverage globally) without the added THC and CBD. Available direct-to-consumer nationwide, it’s a delicious, flavorful, and refreshing alcohol alternative for when you don’t want to drink, but you still want a (great) drink. Cann Unspiked is vegan, gluten-free, low in calories (30-35 per 8oz can), crafted with all-natural ingredients, and available in the original four Cann flavors: Lemon Lavender, Grapefruit Rosemary, Blood Orange Cardamom and Cranberry Sage. There are no artificial sweeteners, flavors, or preservatives.

The Cann brand is backed by innovative and forward-thinking celebrities with diverse backgrounds in wellness, activism and philanthropy, including: Gwyneth Paltrow, Kate Hudson, Baron Davis, Rebel Wilson, Rosario Dawson, Darren Criss, Casey Niestat, Tove Lo, and Bre-Z.

For more information on Unspiked, visit www.drinkunspiked.com or @drinkunspiked on Instagram.

About Magic Mind 

After nearly a decade of research alongside a team of doctors, researchers and PhDs, Magic Mind released the world’s first productivity beverage. A magical combination of 12 active ingredients helps consumers get into their most productive and fulfilling flow-state. Matcha works alongside nootropics (like Phosphatidylserine, Citicoline, and Lion’s Mane Mushrooms) and adaptogens (like ashwagandha and turmeric) to help you accomplish more while stressing less. Magic Mind is designed to be consumed daily on its own, or can be taken alongside your typical coffee or tea ritual to help counteract the negative side effects that come with standard caffeine intake. Think: fewer jitters, no procrastination or crash, hyper-focus, and zen-like energy. Enjoyed by entrepreneurs and creators around the world, Magic Mind has quickly become a beloved daily ritual for thousands of subscribers. Backed by renowned private investors like Justin Kan, co-founder of Twitch, and Alex Snodgrass, chef and NY Times best-selling author behind The Defined Dish, it’s no wonder Forbes dubbed Magic Mind “Silicon Valley’s New Morning Elixir.”

Instant Delivery: How Top D2C Brands are Leveraging ‘Speed’ as a Competitive Advantage  

Aiza Chaudry
Other

News flash: the slow and steady tortoise no longer wins the race.  

The modern shopper’s need for fast delivery has intensified, thanks in large part to the expectations that industry bellwethers like Amazon, Walmart, and Target have helped shape in the past couple of years.

Direct-to-consumer brands and smaller retailers literally have zero chance of protecting (much less growing) their market share without similarly adopting the ways of the speedy hare. 

Fortunately, the emergence of instant commerce and micro-fulfillment players like Ohi empowers them to close the gap and even out-compete many leading marketplaces when it comes to e-commerce fulfillment.

How top DTC brands are leveraging instant delivery

Instant delivery is way more than just a ‘nice-to-have’. It’s a must-have upgrade, and it’s very much mandatory if you want to meet your customers’ expectations.

A 2021 global consumer insights survey by PWC revealed “fast/reliable delivery” as consumers’ #1 overall consideration when shopping online.

And businesses who don’t upgrade to at least Amazon-like delivery speed will eventually lose out to Amazon or other big retail companies that are solving for instant commerce.

Happy customers help you grow your brand’s bottom line. According to proprietary Ohi research, the D2C brands that are leveraging instant 2-hour delivery had 24% higher repeat purchase rates compared to same-day delivery and an astounding 61% higher repeat purchase rates when compared to standard UPS/FedEx.

Instant delivery is game-changing for D2C-focused brands, and here are a few success stories that illustrate that very point.

Top DTC Brands Benefiting from Instant Delivery

Olipop’s CLV has grown by 150% with Instant Delivery 

Olipop is a leading fizzy tonic brand, the maker of a new kind of soda made from all-natural ingredients, combining the benefits of prebiotics, plant fiber, and botanicals.

Although the brand has a solid omnichannel presence, they believe a direct-to-consumer strategy is crucial to growth. 

And for that purpose, the brand needed a D2C/DTC fulfillment partner to meet its high customer experience expectations.

Olipop’s ROI has steadily increased since teaming up with Ohi.

Thanks to the flexible and fast delivery of its sparkling tonics on Ohi’s platform, Olipop now provides its customers with a tremendous post-purchase experience that matches its excellent pre-purchase experience. As a result, many of their customers have repeat subscription orders; with Ohi, Olipop customers can schedule and reschedule deliveries within seven days and in three different time windows. 

For Ohi-shipped orders, Olipop experienced a 150% higher customer lifetime value (CLV) and a 140 percent increase in lifetime orders (versus non-Ohi).

The significant increase in repeat purchases highlights the significance of “fast, free, and flexible” delivery for customers and explains why Olipop customers rate Ohi 4.6/5 stars for exceptional service.

Ovira more than doubled its repeat purchase rate

For centuries, women have endured painful periods (dysmenorrhea), pains associated with endometriosis. Ovira is a DTC-focused company devoted to helping women end this pain. Ovira’s revolutionary device, Noha, minimizes pain using pulse therapy. 

Because period pain can be spontaneous and unbearable, Ovira wanted a fast delivery of the Noha device.

Ohi seemed like the perfect instant fulfillment partner Ovira sought to meet its customers’ need for convenient and fast delivery.

Having teamed up with Ohi, Ovira now delivers delightfully fast, on-brand, and memorable post-purchase experiences that enable brand growth. 

With instant delivery as part of its post-purchase customer experience, Ovira’s repeat purchase rate has more than doubled (+120% for Ohi-shipped orders in comparison to orders shipped via FedEx/UPS). In addition, Ovira’s customers who ordered with Ohi rated us an average rating of 4.7/5 stars. 

These numbers clearly emphasize what it means for Ovira’s customers to have instant pain relief products.

Health-Ade’s customer lifetime value topped 40%

To minimize fulfillment costs while providing a great customer experience, one of the country’s most popular kombucha brands sought a better alternative to conventional 3PLs in its major metro areas.

Health-Ade, established in 2012, has quickly developed a nationwide customer base that adores its kombuchas for their delicious taste, an exciting variety of flavors, and countless health benefits.

Kombucha has special handling/transport requirements because it must be refrigerated to maintain peak freshness and probiotic qualities.

Traditional e-commerce fulfillment wasn’t a good fit for Health-Ade: they realized that delivering glass bottles over long distances via UPS/FedEx using a traditional 3PL wouldn’t be viable. First, there’s the risk of breakage. And then there are the ridiculously high costs associated with shipping weight and extra-packaging materials and the need to keep the kombuchas cold, typically necessitating the use of expensive cold packs. 

Health-Ade required more efficient handling of e-commerce fulfillment in its most critical metro areas.

Ohi delivered on all that and more.

Ohi enabled instant commerce for Health-Ade allowing them to deliver Kombuchas instantly to their customer base within a week of deployment.

After partnering with Ohi, Health-Ade has seen its customer lifetime value (CLV) increase by 49% on orders shipped with Ohi (versus standard FedEx/UPS), showing just how valuable the instant commerce experience is to customers.

Health-Ade’s customers have rated Ohi an average of 4.6/5 stars for service excellence.

Athletic Brewing Company experienced a 30% increase in their repeat purchase rate

Athletic Brewing, a non-alcoholic craft beer brand, was looking for a faster and more reliable fulfillment partner and had been unimpressed with traditional 3PLs’ fulfillment capabilities and overall lack of D2C-friendliness.

As impressive as Athletic Brewing’s products are – beers brewed from high-quality, all-natural ingredients for “the modern-day beer drinker”- they needed an instant commerce solution to kick their customer experience up a notch and drive meaningful D2C growth. 

After learning how Ohi could elevate their customer experience and drive significant ROI while keeping its powerful brand front-and-center, the brand turned to Ohi’s instant delivery solution.                                                                                            

Athletic Brewing provides its customers powerfully fast, brand-focused, and memorable post-purchase experiences via the Ohi platform.

Athletic Brewing now enjoys a 30% uptick in repeat purchase rates on Ohi-shipped orders compared to orders delivered through FedEx/UPS. Additionally, athletic Brewing customers rated Ohi an average of 4.7/5 stars.

With Ohi’s shipping options – 2-hour, same-day, and next-day delivery – the DTC-focused brand delivers great-tasting beers to its customers alongside a custom-branded post-purchase experience. 

Customers receive real-time tracking information via email/SMS (tailored to Athletic Brewing’s brand guidelines), allowing them to track their orders to their doors.

So how does Ohi do it? 

We keep our inventory “hyperlocal” in micro-fulfillment centers in major metropolitan areas. This enables our partner brands to deliver their products to customers within the same day or two hours – in time for a spontaneous dinner, a late or early morning drink, or to relieve period pain. 

We’re proactive – our dedicated teams analyze your brand’s product demand at the SKU level, consistently working with the operations team to ensure there’s sufficient inventory available across the micro-fulfillment networks. In addition, Ohi’s account managers work with brands to ensure seamless procedures while identifying ways to boost efficiency and ROI for our partner brands.

Our technology constantly monitors delivery speed and consistency within the Ohi network, modifying courier utilization and other factors to ensure customers get what they ordered within the chosen delivery window. 

And because we keep our inventory as close to customers as possible, our packaging and last-mile shipping are also more environmentally friendly. 

Fast & free wins the race!

Many of the world’s top marketplaces and big retailers are already looking beyond same-day delivery and upping the ante once again with sub-hour delivery options.

And with 15-minute delivery becoming a thing in New York City and elsewhere, your D2C brand crossing the finish line in 3-5 business days just won’t suffice any longer. The race will have been long over before your brand reaches the line.

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.