Trends Report

Investment Sweet Spot: Same-Day Delivery

Retailers Are Spending Too Much

December 7th, 2023
With contributors:
Melissa Parrish , Taylor Hansen


Retailers have long felt competitive pressure to offer same-day delivery — but for most, this service will never be feasible. Startup costs are stratospheric, as are the ongoing costs to run the service, thereby gobbling up profitability. The real kicker: Most consumers aren’t interested in the service in the first place. Unless retailers are in a high-margin category where it makes sense, most should not even contemplate offering same-day delivery until startup and maintenance costs come down by at least half — and at least 70% of their customers are influenced by this service. Until then, hone your in-store fulfillment processes (and costs) and test working with third-party delivery partners to learn the ropes.

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