Two-day, next-day, and same-day delivery may be a relatively new concept, with same-day delivery first available in 2015, but the process has rapidly changed the market and delivery system beyond expectations. Now, your next purchase is just a click away from your door! The modern customer has come to expect the same seamless, fast-paced delivery experience for every online purchase. With this mindset, today’s buyers often return to the same stores rather than looking outward, typically choosing speed over quality.
While this boom has been great for mass retailers, it takes a toll on the businesses that can’t achieve this streamlined delivery experience. Speedy shipping is no easy feat, so how are these companies delivering fast enough to keep up with this service demand, and how attainable is it for the average business? To get a better idea, let’s look at the company that caused this trend to skyrocket.
Case study: Amazon
Amazon is a prime (get it?) example of efficient modern delivery and adaptation to the market. Over the years, Amazon’s innovations and sales tactics have built a lasting reputation, earning the company fame as the top online marketplace.
Among many history-making advances, they launched Amazon Web Services (AWS), introduced the renowned Amazon Prime service, and were the first to patent the 1-click checkout system. This 1-click checkout feature allows customers to create accounts, store their payment information, and checkout with a single click. These days, we’re used to seeing this feature across many different commerce sites, but until 2017 when the patent expired, Amazon had full rights over the process.
Amazon Prime itself is a major contributor to the modern consumer’s mindset on delivery. Amazon introduced Prime in 2005, offering two-day shipping to the masses under an annual subscription. In conjunction with the 2015 addition of Amazon Now, which granted major cities delivery in as little as two hours, Amazon became a quick-shipping legend.
In 2023 alone, Amazon delivered over 7 billion products—but how do they pull it off? Shipping at this magnitude often carries a high price tag and requires full-time attention. Built specifically to streamline their shipping operations, Amazon curates their specialized customer experience through multiple avenues.
With personal delivery infrastructure and transportation, Amazon has full control over every step of their shipping process, allowing them to fulfill orders as quickly as possible.
Amazon has around 110 fulfillment centers in the U.S. and over 185 worldwide.
Sortation centers sort packages by zip code before shipping them to carriers, speeding up the delivery process.
Having their own delivery staff and vehicles, Amazon can deliver as quickly as needed, allowing for arrival within as little as a few hours.
Amazon has delivery stations near over 100 major cities. Smaller facilities located closer to customers, where packages are prepped for final delivery.
Aside from their signature personal ground transportation, Amazon delivers via the following:
Amazon Flex: A crowdsourced delivery program where individuals use their personal vehicles to deliver packages.
Partnerships with Carriers: Collaborations with carriers like UPS, FedEx, and the U.S. Postal Service.
Air Fleet: Amazon Air, their fleet of cargo planes, ensures rapid long-distance shipping.
They have a massive global supply chain.
Amazon operates in 58 countries and delivers to over 100 worldwide.
Prime is currently available in 21 countries, granting them the largest global customer base.
Amazon works non-stop, open 24 hours a day, 365 days a year.
Without a break in operations, Amazon has plenty of time to fulfill every order.
Amazon uses automation and robotics to streamline performance.
Amazon's fulfillment centers use Amazon Robotics to transport shelves of products to human pickers, reducing the time and effort needed to retrieve items.
Automated conveyor belt systems sort packages based on their destination, ensuring efficient routing and delivery.
Robotic arms are used for tasks such as picking, packing, and sorting items in fulfillment centers.
What Liftoff Commerce can do for you
Trying to provide that “Amazon experience” may be daunting, but Liftoff is here to help! Our platform is loaded with features to make shipping a breeze.
New lead times feature
Lead time is the time between the initiation and completion of a product’s fulfillment process. With lead times, Liftoff can keep customers informed about a product’s shipping and delivery status every step of the way.
Role-based shipping methods
With role-based shipping methods, you can assign shipping priority based on customer role. For example, you could disallow priority shipping for unregistered users or enable priority shipping solely for managers.
EasyPost
Leveraging EasyPost's API, Liftoff can provide automatic carrier rates for USPS, UPS, and FedEx carriers. Rates are provided in real-time, eliminating the need to set up complex freight tables.
1-click checkout
By removing multiple steps from the checkout process, Liftoff’s 1-click checkout feature creates a seamless, streamlined customer experience. Learn more about our 1-click checkout system on our blog.
Flexibility of retail/published/negotiated pricing
When calculating carrier rates, you can choose what type of rate to present to your customer, including your negotiated carrier rates!
Order level handling
Regardless of the type of rates you choose to display, you can also attach an order-level handling fee to help cover additional costs related to your shipments.
Inventory management
Liftoff has great inventory management software to predict demand and ensure popular items are always in stock.
Order management
Our order management system gives you the space to streamline order processing and quickly fulfill orders.
Markups and markdowns
Liftoff supports the ability to apply a markup or a markdown to each individual shipping method so that you can adjust your shipping rates at the most granular level.
Utilizing Liftoff, you can ship with ease! With so many features to tailor your customer’s experience, you can create the perfect checkout and shipping experience for every client.
More quick-shipping tips
Some of these statistics sound impossible to reach, and Amazon makes it sound a lot easier said than done! If you’re looking to implement quick delivery, there will be challenges. So, how can companies without Amazon-level funding speed up their shipping?
Covering costs: The costs of running a complex, streamlined delivery system can be hard to handle. If you’d like to take a few steps towards quicker delivery,
Consider placing expedited delivery under a premium subscription to help cover shipping costs if you’re opting for free shipping.
With slight raises in your product pricing, you can offset the increased shipping costs.
Partner with Third-Party Logistics (3PL) providers: Use 3PL providers like our partner ShipStation to handle warehousing, picking, packing, and shipping.
Partner with companies that offer distributed warehousing, allowing you to store inventory closer to your customers.
Negotiate with carriers: Develop relationships with major carriers (UPS, FedEx, USPS, DHL) to negotiate better rates and faster shipping options.
If your shipping volume is high enough, you may qualify for carrier discounts that make two-day shipping more affordable.
For local deliveries, consider partnering with local courier services that can offer same-day or next-day delivery. You may also utilize services like Postmates, DoorDash, or Uber Eats for rapid local delivery of smaller items.
Efficient packing and shipping processes: Streamlining is key!
Optimize your warehouse layout and packing processes to minimize the time it takes to fulfill orders.
Use shipping software to compare rates and delivery times across carriers and choose the best option for each order.
Offer expedited shipping options: Give customers the option to choose expedited shipping at checkout.
Consider occasionally offering free or discounted shipping as a promotion to incentivize purchases.
Your solution to the modern delivery dilemma
The “Amazon experience” has set high expectations for consumers, who now prioritize speed over quality. Thankfully, Liftoff has your back! With features like lead times, role-based shipping, and partnerships with third-party logistics providers, Liftoff helps companies enhance their shipping efficiency. By leveraging smart inventory management and clear communication, any business can deliver a fast and smooth shipping experience, meeting the high demands of today's shoppers.
Comments