Same Day Delivery: Increasing Conversion Rates

Shipping is one of the most critical logistics elements for any online business, learn how to increase conversion rates using same day delivery in this post.

Same Day Delivery


Online shopping is exploding all over the world, with consumer expectations and habits influencing the structure and pace of the industry.

Despite several innovations and advancements to the consumer experience, such as “try before you buy,” the usage of virtual reality, and AI-powered personalization, conversion remains one of the e-retailers’ major hurdles. There are a lot of numbers floating around about same-day delivery demand, some of which are less credible than others. For example, it is estimated that a quarter of online shoppers may abandon their shopping basket if same-day delivery is not available. It influences the buying decisions of customers greatly.

But does this affect conversion rates, and if so, How? 

How does same day delivery increase conversion rates? 

From the moment they land on your online store to the moment they unbox their items, customers expect a seamless journey and stellar customer service. While a large portion of cart abandonment can be attributed to issues with the user experience and price comparison, its failed expectations, and dissatisfaction with the delivery options on offer that will drive half of them away.

For those who do convert, a smooth and pleasant delivery experience encourages them to shop again and more frequently, so increasing their lifetime value. A bad delivery experience, on the other hand, can backfire. Many e-commerce businesses fail to realize that a 3-5 day shipment timeframe is just long enough to make a buyer second-guess their decision to buy from them.

So, what’s the psychology of a customer before checkout? 

  • Price comparison:
    With other websites only a few clicks away, many customers may evaluate delivery schedules before making a purchase, assuming pricing are comparable. Cost issues aren’t without their advantages. Improved conversion rates and income from higher basket values, as well as a rising loyal customer base, give long-term benefits that help a company develop.

  • Brand Value:
    Customers can go for quick shopping experience because they know the delivery will be faster. This builds brand loyalty and brand value among customers. By removing other possibilities, free same-day delivery eliminates moments of doubt and improves conversion rates.

  • Buying experience:
    This is in high demand socially and economically these days, thus providing them with near-instant gratification through same-day delivery will be beneficial. When consumers are offered the convenience of free delivery, they are generally willing to spend a few dollars more on their goods. Many retailers provide free delivery above a particular purchase value to subsidize the cost of delivery and provide the greatest customer experience.

  • Competitive edge:
    E-commerce stores should review their shipping options and prices if cart abandonment rates are alarmingly high. Compare them to other competitive brands to determine where they stand in terms of competitiveness. If they are the only company that offers same-day delivery, they have effectively monopolized that product market if delivery time is critical to the customer.

Same day shipping gaining more importance

  • More than half of online retailers admit to having trouble with shipping operations 
  • Roughly 40% of retailers are concerned about the expense of same day delivery shipping

This scenario is changing with shipping services becoming more economical and accessible, as evidenced by the industry’s expansion. Businesses are looking for more cost-effective and efficient options like air cargo. Moreover, air cargo shipping services proved to be the faster and cheaper alternative. Air cargo shippers are offering same day delivery as a competitive advantage over bigger giants like Amazon Prime. So this seems to be increasing of conversion rates too!

Free shipping will surely aid in ‘sealing the deal’ at the checkout, as it is a big factor in purchase decisions. While the prospect of bearing the cost of free delivery can be daunting, there are a few things you can do to mitigate the blow.

  1. Offering free delivery after spending a certain amount is a common way for merchants to keep their margins and avoid losing money on minor transactions. With 73 percent of buyers admitting to overspending in order to qualify for free delivery, it’s also a great marketing tool to push them to spend more.
  2. Offering delivery loyalty programs is another approach to offset the expense of free deliveries. This can be one form of encouragement to consumers to shop more that also offers limitless free standard or next day delivery for a monthly or annual cost. This will increase their lifetime value. The popularity of such programs isn’t going away, especially among millennials, who have signed up for up to seven delivery loyalty programs.
  3. Last-mile logistics partners that offer click-and-collect via parcel shops or lockers should be explored when it comes to lowering the surface cost of delivery choices. Because of their multi-drop models, these e-commerce logistics can usually offer better pricing on same day services. This component also increases the likelihood of keeping a promise made the day before.

 Free Return Ideology

Returns should be free, simple, and transparent. Conquering delivery is only half the battle; the customer’s return journey has a huge impact on conversion and loyalty.

We know that offering compensated returns has a big impact on purchasing decisions; therefore it’s important to promote it throughout the buying process. Customers will be reassured that they will not be charged to change their minds if they are displeased with their purchase. By doing so, you’re removing a roadblock to conversion.

In terms of the physical journey, over a third of customers find it difficult to return things they no longer desire, and more than half believe the process is too complicated. Offering a one-day return, just like one-day delivery, can ease the pain of customers. 

The majority of customers said they would shop with an online retailer who makes the returns procedure easier, emphasizing the importance of a simple and straightforward returns process. Customers want to be able to quickly identify and understand the returns policy so they don’t have to jump through hoops to return things they don’t want. This means they may return on the move, without being constrained by conventional business hours, and benefit from a quick and painless returns process. 

Furthermore, when it comes to returns, customers want variety and ease, so businesses must think beyond the post office and think of faster means of road, water, or air transport. This is possible when online stores collaborate with e-commerce logistics companies to strategize the rates of shipping and delivery, without compromising on profits. 

SmartKargo’s E-commerce Logistics Solution enables retailers and e-commerce brands to stay agile in an ever-changing ecosystem and to meet the increasing demand for same day and cost-effective delivery by reducing last-mile transportation time and costs, offering pan-India e-commerce packages delivered within a record time of 20 hours with live tracking, and offering to ship packages at the speed of flight with real-time tracking.