E-commerce grew 20% for Costco in fiscal 2015—20 times faster than store sales.
The test involves such retailers as Best Buy, Wal-Mart and Indigo Books.
In this age of global strife and tension, one emotion serves as common ground for consumers around the world: Impatience.
At least that’s the apparent hope of an increasing number of e-retailers and e-commerce fulfillment providers that have moved to offer all but instant shipments of online orders. The latest organization to jump into the same-day delivery game is national mail and courier service Canada Post Corp. The move follows a similar test by the U.S. Postal Service, the introduction of a one-hour delivery promise by Chinese online retailer Kuaishubao.com, the looming expansion of same-day delivery service Shutl into the United States and ongoing same-day programs from retailers and e-commerce operators such as Planet Blue, eBay Inc. and the biggest e-retailer player out there, Amazon.com Inc. Google Inc. also has tested same-day deliveries for West Coast consumers.
Canada Post’s new Delivered Tonight service will offer online consumers in the Toronto area the ability to receive same-day deliveries of items ordered via the Canadian e-commerce sites of Wal-Mart Stores Inc. (No. 4 in the Internet Retailer Top 500 Guide), Best Buy Co. (No. 11), Indigo Books & Music Inc. (No. 218) and Future Shop, a consumer electronics merchant that is part of Best Buy.
“These retailers are leveraging the Delivered Tonightpilot to better understand and adapt to the needs and expectations of Canada’s rapidly evolving e-commerce market,” Canada Post says. “The pilot will also help Canada Post better understand and plan for the considerable challenges of delivering a product through rush-hour traffic within hours of it being ordered online.”
Canadian e-commerce will increase at least 10% annually over the next five years, topping C$33.8 billion ($32.8 billion) in 2018, up from the C$20.6 billion ($20 billion) this year, according to a recent projection from Forrester Research Inc.
The Delivered Tonight test will last through the holiday season and result in more than 90,000 additional parcels per business day in the Toronto area, Canada Post says.
Surveys have painted differing pictures of the demand for same-day deliveries. For instance, U.S. Auto Parts Network, No. 89 in the 2013 Internet Retailer, ran a survey that found encouraging results for the service. Another survey, this one from March, suggested that most consumers are less interested in quick delivery than they are in low prices.