Chapter 6

Meeting delivery expectations

Delivery plays an integral role within customer convenience. The big challenge for retailers is keeping up with the on-demand attitude of today’s consumers. In response to modern society’s need for instant gratification, retailers are also having to offer new and often multiple options when it comes to delivery and returns, suitable for customers with busy lifestyles.

ASOS are one such brand leading the way when it comes to catering to its customers’ needs. Shoppers can choose from a plethora of delivery options including same day, as well as several ways to return items. This includes via any of the 1,100 InPost lockers available 24/7, located at other retailers, various supermarkets, and even petrol stations.

Meanwhile uses AI across its supply chain and logistics to deliver over 92% of orders for same and next day delivery. Its effective use of intelligent technology can predict future demand, and is speeding up logistics by bringing its fully-autonomous warehouse online.

For Amazon, being able to expand their distribution centres over the past decade has been a key component in their overall growth strategy.

While initially having to take on more overhead costs to open new fulfilment centres that could get orders shipped quicker, it also decreased shipping costs by up to $13 billion and increased profit by up to $8 billion . Thus, proving the value of short-term trade-offs in exchange for happy customers - and ultimately long-term margin.