“There’s going to be a huge change in retail and e-commerce in the next 5 to 10 years. Amazon are moving into Sweden now. With our solution, local retailers can differentiate from the big international competition and keep customers from opting out of their businesses.”
This is the prediction of Henrik Gerner-Mathisen, founder and CEO of Norwegian logistics and e-commerce firm Porterbuddy. Porteruddy offers a same day delivery service in the Oslo area and has managed to meet its customers’ expectations quite successfully – without turning express shipping into a huge cost for businesses.
At Webshipper, we know that many of our Nordic webshop customers fear what Amazon might do to their businesses. One thing you cannot do is try to compete with Amazon in regards to stock selection. But same day delivery might be a way to differentiate, because, according to Gerner-Mathisen, this can only work if you know local partners.
Who should consider offering same day delivery?
“It’s a matter of offering flexibility for your customer,’ Gerner-Mathisen explains. ʻWe’ve made a platform where retailers can meet their customers at the specific moment in time when they are browsing – and offer to get the items right away. Today, fast delivery is 1 to 3 days. Why not offer delivery in 1 to 3 hours?”
Of course, it’s a matter of logistics, and Porterbuddy has found a pretty good solution for that:
“We know the Oslo area deeply. We also know that it’s actually quite expensive and inconvenient for people to get into the city centre by public transportation or to find a parking spot, so we offer to bring items to customers right away. This is very convenient, for example if you need medicine from the pharmacy, but can’t go get it yourself – then we’ll deliver. We do so by driving bikes and electric vehicles. Our solution is not just a convenient one; it’s also part of a green city development solution.”
Is there really a benefit to offering same day delivery?
Do customers really care if a webshop offers same day delivery? Yes! Gerner-Mathisen says:
“We make it clear on webshops’ websites that browsing customers can get the items they’re interested in right away. This is a way to increase conversion rates. It’s a great service to show customers “you can actually get what you see in our shop today or when you need it”. In this way we help webshops reach more customers, become more relevant to those customers and increase sales.”
Isn’t same day delivery a huge cost for webshops?
Same day delivery should, of course, not be your only choice of shipping for your customer. And customers must be willing to pay for the express service.
But Gerner-Mathisen has found that quite a big group of people are willing to pay for convenience:
“Until recently we reached 700,000 people in the Oslo area. Now we reach 1.1 million people. But we learned something interesting: It’s actually still the people living close to the city centre – not the ones in the newly covered areas farther away from the city – who use our service. It’s not necessarily rich people, either. This proves for us that people are willing to pay for convenience, and I believe this is a trend across the Nordic countries. It reflects that people are living busy lives and are looking for new ways to get things delivered.”
Pharmacies, retailers who sell building materials, and clothing brands are using Porterbuddy to offer their customers this convenient way of shipping, and they are succesfully using it as part of their marketing.
“Price is not going to be the big issue here going forward. The majority of customers still prefer the cheapest way of delivery. But more people are looking for new ways to get things delivered, and webshops might consider tapping into this trend,” Gerner-Mathisen recommends.
If you want to be able to offer your customers same day delivery, don’t hesitate to contact us at Webshipper to make use of the fully automated process of webshop integration, label printing and fast delivery via e.g. our Porterbuddy integration.