One of the buyers of Target & Ship's completes an online grocery order.
Target introduces its ability to deliver the same day to the masses, marking the final step in a continuing and heated warfare involving the large retailer, Walmart and Amazon
Target announced on Thursday that buyers in 47 countries across the country will now be able to receive online order items submitted the same day by paying a fixed fee of $ 9.99 per order. It uses Shipt, a membership-based delivery platform that it has acquired for $ 550 million in 201
So far, target buyers have been able to receive orders delivered the same day as a shit member that costs $ 99 per year. This option is still available to everyone, Target said, but the company makes it easier for people to choose one day's shipment than to register for annual membership.
Target's announcement comes amid a flood of activity among Internet marketers to get customer orders as quickly as possible. Both Walmart and Amazon recently announced delivery options the next day, with Walmart promising to reach 75% of US consumers with faster delivery by the end of 2019.
Amazon currently offers its first members to pay $ 119 annual membership fee, free delivery per day for more than 3 million items and orders over $ 35. Members who are not members of the prime minister can get this option by paying an extra $ 9.98 per item, according to your website. And that's just "selected areas" in the US, says Amazon.
Walmart, meanwhile, is about to offer a same-day grocery delivery from a network of 1600 stores by the end of the year – double it returned in January. Charges for this option vary by location. And this autumn Walmart plans to start delivering groceries inside homes, right to the customers' refrigerators, in several markets. He has not yet revealed how much this service will cost to customers.
Now, with Target's expansion in one day, 65,000 items at Target.com will be able to deliver as fast as an hour. said. Buyers will be able to use their Target credit cards to pay, giving them a 5% discount. And he said that this one day delivery option should be included in the Target mobile app before the holidays. It is currently live on desktop and mobile web browsers.
With delivery on the same day already available directly within Target.com's experience, we've made it even easier for our guests to shop at Target, "said Dawn Block, Senior Vice President of Digital Operations at Target . 19659011] Membership in Shipt has doubled
Since the acquisition of Shipt, Target said the membership base of the service has doubled and the number of retailers in the Shipt network has doubled. In addition to Target, Shipt still serves companies including CVS, H-E-B and Meijer. Around 80,000 Shipt clients work around the holidays, helping to collect, pack and deliver orders from these merchants. Recently, he said the number has grown to more than 100,000 people.
Target now offers other online ordering options throughout the day through its stores. This includes a free option to load around 1400 stores on board, as well as a free dialing option at all 1,850 stores in the US. Both types of promised orders are ready within one hour.
In the first quarter of this year, Target said Shipt, the pickup truck and the pickup truck in the store, have made more than half of its 42% growth in e-commerce sales and 25% sales growth in stores. Sales in stores open for at least one year increased by 4.8% in the quarter.
The financial benefit of all this to Target is that when customers take products in stores, it's 90% cheaper for the merchant than when they have to deliver something out of stock, the company said.
Daily delivery at a charge of $ 9.99 on nine markets prior to Thursday's announcement, Target said the basket size has risen by 10% to 15% on Target.com, compared with when buyers had to go through the website to Shipt to get delivery on the same day. 19659002] Fifty-three percent of consumers said they planned to place more orders online in 2019 with the intention of taking these articles from brick and mortar shops, according to an Internet merchant survey of 1100 users, which is taken immediately after the 2018 season y for rest. About 23% of respondents said they planned to place more orders on the same day. But with Amazon, Walmart, Target, and others who are struggling to gain customers with faster services, there is still some skepticism
"It's Not Sustainable"
"We broke the expectations of customers and this is zero cost to the customer, "Suharita Kodali, a retail analyst at Forrester Research said in a recent interview. "Other companies … someone has the cost."
In the end, she said, "I do not think customer experience is sustainable, we have to accept a little less, which means: something like next day's delivery is a short-term explosion of excitement … a short-term microeconomic war. this is not sustainable at the macro level
Amazon, for example, said it would spend $ 800 million in its second fiscal quarter this year to switch to a one-day supply for group members Target does not reveal costs for expanding its supply on the same day, but said that more and more cl nth decide to use options to upload and storage in the store, instead of doing this. And as more and more people make, the cost to implement the Target reduced.