On-Demand Delivery for Online Businesses

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In 2021 alone, over 8.4 million retailers worldwide offered same-day delivery, according to Statista. The trend remains on the upswing with a forecasted 26.4 million retailers globally in 2027 as more companies look to meet the shoppers' demand for flexible shipping with on-demand delivery. With the advancement of technology, partly accelerated by the effects of the COVID-19 pandemic, on-demand delivery has now evolved into a technology that now serves as the backbone of an entire e-commerce economy. According to research by the United Nations Conference on Trade and Development, from 2019 to 2021, the average percentage of internet users who made purchases online rose from 53% to 60%. 

While the concept of efficiency and instant gratification is nothing new, it is due to technological advancements that many businesses are now greatly benefiting in this time and age, as they offer on-demand delivery services to their customers. In the paragraphs below, we further explain how on-demand delivery services have revolutionised digital shopping:

What is on-demand delivery?

As the name suggests, on-demand deliveries are sent to customers through the linking up of manufacturers, e-commerce businesses, and logistics service providers. Unlike the business-to-customer (B2C) model, business-to-business (B2B) e-commerce lets customers decide where and what they want to buy, as well as when, to whom, and how it should be delivered. 

In other words, on-demand delivery allows companies to leverage online platforms such as social media, websites, and mobile apps. Ultimately, they can sell their product to the end consumer conveniently and efficiently.

What are the benefits of on-demand delivery services?

On-demand delivery can be an important aspect of an e-commerce business. Here are some key benefits:

Broader customer reach

The main benefit of on-demand delivery is undoubtedly the opportunity for brands to reach a much larger customer base. The increasing annual growth rate of 6.95% (CAGR 2023-2027) in revenue from the platform-to-consumer business sector, reports Statista, shows market potential in making more profits. 

Compared to the traditional retail business model with brick-and-mortar stores, such a service can help local e-commerce companies reach global consumers.

Better cost savings

Another advantage worth mentioning is that the small and medium enterprises  will no longer need to invest heavily in hiring more staff, nor worry about rising warehouse costs and store operations. With this on-demand delivery business model, businesses can now cut down on their operations expenditure.

A better understanding of customer behaviour and demand patterns

Since its inception, businesses providing on-demand delivery services have evolved significantly beyond its original capabilities. Now, small and medium enterprises can leverage advanced technologies such as enterprise resource planning software, cloud computing, the Internet of Things (IoT), AI, and machine learning. It was found that these technologies have greatly assisted companies in better understanding consumer buying behaviour and trends, and this helps them create new policies and protocols to provide better services to their customers.

Customer loyalty

Logistics is a crucial touchpoint for brands and consumers in an increasingly saturated virtual buying environment. In most cases, mistakes and even the slightest dissatisfaction can turn your customers away and send them into the arms of your competitors. In this regard, on-time, on-demand delivery can be critical in maintaining a strong relationship between businesses and their customers.

The key to customer loyalty lies in the personalisation of delivery options. Savvy brands who understand the importance of delivery to online businesses will use advanced logistics tools to help them deliver their products to the customers in a swift and efficient manner, thus boosting their reputation of being service oriented and reliable. This strategy is vital for industries where on-demand services are still nascent and gives early adopters an advantage in getting to the market.

Low infrastructure costs

Not only is selling your products via online platforms a lucrative one, it also requires less capital outlay. On-demand delivery eliminates or reduces the need to invest in costly physical stores as well as having to bear the burden of its daily operating costs. With such platforms, small businesses can become full-fledged e-commerce businesses, and by leveraging social media they can further boost sales through brand awareness. 

Minimal manual dependencies

One of the most critical features of on-demand delivery is speed and short turnaround time. Service providers ensure optimal timing is attained by automating manual delivery processes such as scheduling, task assignment, routing, and shipping. 

Customer-centric service

Finally, an on-demand delivery service provides a community-oriented experience that allows companies to cater to their customer's preferences. In turn, consumers can change the location and time of delivery on the fly and rely on the service provider’s reliability. As a result, the increase in engagement and experience helps brands create loyal customer bases for themselves.

Why on-demand delivery is crucial for e-commerce businesses

Statistics show that the on-demand economy is constantly evolving and is here to stay. In this context, delivery tracking is a crucial aspect of proper business planning and logistics strategy. While it streamlines the delivery process by providing customers with live insights, it also provides logistics players with valuable operational levers for international shipping. 

Kickstart your e-commerce business with DHL’s On-Demand Delivery (ODD) service

DHL Express is a leading global delivery and logistics partner that empowers businesses by leveraging On-Demand Delivery (ODD) for global shipping. The service provides e-commerce start-ups with a reliable and trustworthy last-mile delivery process with flexible shipping options. Thanks to the speed and reliability of our couriers, New Zealand’s e-commerce businesses can now easily handle their shipments through our warehouses.

Sign up for a DHL Express account today and get started.