Same Day Furniture Delivery: The Future of Shopping?

In an age of instant communication and super fast shipping, why can’t we order our furniture online, have it delivered to our home, and take it out of the box and use it instantly? Why does it always take weeks to get new furniture from the store even when you order it well in advance? We live in the age of Amazon Prime; speed has become an important factor to many shoppers, particularly millennials. In order to keep their business competitive and cater to this new market, traditional retailers like Macy’s are making moves to offer same day delivery, in order to gain more ecommerce business.

How big is the market potential?

The E-Commerce Furniture Market size was valued at USD 27.74 billion in 2021 and is predicted to reach USD 40.74 billion by 2030 with a CAGR of 4.4% from 2022-2030.

Market Dynamics and Trends

The success of furniture e-commerce platforms is mainly attributed to the fact that the consumers are more inclined toward buying foldable, multi-purpose, and technology-driven furniture through e-commerce websites on account of heavy discounts, comfort, and trendy designs. The furniture sold on the e-commerce websites can come assembled, be partially assembled, or need assembly on arrival. These furniture’s can be larger items including couches, desks, and beds as well as the much smaller decorative items, such as throw pillows, light fixtures, and window treatments. The proliferation of online shopping, rise in penetration of smartphones, and growth of the real estate and hospitality industries across the globe are the major factors expected to fuel the growth of the global furniture e-commerce market.

However, import & export restrictions and sudden disruption in the supply chain are anticipated to restrain the market growth. On the other hand, rise in number of collaborations between the furniture manufacturers and e-commerce platforms to reach and attract more customers and generate new revenue streams. is projected to provide lucrative opportunities for the growth of the global furniture e-commerce market.

What is same day delivery?

Same day delivery is a service offered by some retailers whereby customers can place orders for items and receive them on the same day. This is usually done through a third-party delivery service. Some retailers who offer this service include Amazon, Walmart, and Target.

Why the growing demand for same day deliveries?

Same-day and next-day delivery options are becoming increasingly popular with customers who buy items online. As consumers continue to shop less in physical stores and more on their computers, it becomes necessary for brick-and-mortar retailers to provide same-day shipping options of their own in order to stay competitive.

Demand for same day shipping is skyrocketing; many retail business owners will need to invest in software that reduces the cost of delivery while still providing excellent customer service - all without raising prices or cutting corners when they ship out orders. For insight into this trend, take a look at these statistics from GreyOrange Survey.

• 45% of consumers expect a maximum delivery window of 2 days, with 34% expecting it to be delivered in 1 day or less and only 5% expecting a 3-5 day delivery window.
• 57% of consumers would not use a retailer again after three late orders. In fact, some would not even bother giving them a second chance and would simply switch to another company for their purchases.
• 35% of retailers will offer same-day delivery by the end of 2022 - but another 64% plan to add this service within the next three years.

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Furniture Same-Day delivery: a real challenge

Despite the opportunities to earn market share and increase customer satisfaction, brands and logistics providers are struggling to provide their customers with competitive delivery options. To understand why same-day deliveries are difficult for businesses and operations, it's important to examine how they work. Here are the biggest challenges that can turn the same day delivery into a bad experience for customers:

Limited resources

The shortage of delivery agents has caused a strain on some businesses, who are having to spend more money to attract drivers and offering more benefits in order to stay competitive.

Inefficient or manual dispatching 

Most companies rely on dispatchers to schedule deliveries. Outdated dispatching software, or manual dispatching doesn't work well with same-day deliveries because there isn't enough time to check fleet availability for on demand orders when there are multiple destinations (e.g., a retail store). There isn't enough time for the dispatcher to see which driver can deliver the package most cost-effectively due to limited information about drivers' routes and schedules (e.g., what company they work for).

Fulfillment Hubs

ECommerce is expanding at a faster pace than companies can keep up with—specifically, for local inventory. eCommerce has even penetrated suburban and rural areas; most brick-and-mortar retail businesses don't have warehouses close enough to customers to complete same-day deliveries. And without an inventory management system built around shipping from stores and without warehouses closer to customers, it’s impossible to guarantee product availability on demand, in real time.

25% of companies are unable to deliver products within the specified time frame due to how far they must travel.

Lack of visibility

Customers who have experienced poor service from a company are less likely to come back. They want updates on where their order is, how long it will take, and when they can expect the product they've ordered.

In addition to this, if you work with third parties for delivery, that can further reduce visibility into both order location and performance. If there is a missed delivery, or if a delivery attempt fails, do you know why? All too often--the answer is no; and that's an issue because it means reduced operational costs (i.e., compensation) but also lower customer satisfaction levels due to an unexplained technical difficulty.

Cost

Operating same day delivery at all - let alone making it profitable - requires digitized operations using automated dispatch software and route optimization software. Numerous resources need to be coordinated together simultaneously in order for this process to work smoothly.

Tips for overcoming same day delivery challenge

Offering a same-day delivery service is an opportunity to increase revenue from local inventory, but only if you address the challenges of costs for delivering goods quickly. Luckily, there are strategies and tools that can help any company overcome those challenges.

If you're still struggling with how to implement same day shipping, or are getting overwhelmed by the latest trends in commerce, here are some great ways to come out on top. Remember that speed is just one aspect of fulfillment that customers care about - it's all about the full experience starting online and ending with a successful delivery. 

With some smart technology solutions in place like Gomove Technologies and those supply chain systems connected into a single cohesive engine, you'll be able to offer omnichannel experiences and fast delivery while giving customers the needed visibility across their own orders from start to finish via several different channels of ecommerce fulfillment.

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