business news in context, analysis with attitude

The Washington Post has an analysis of same-day delivery programs that seem to be cropping up with greater frequency, as companies that include Amazon, Walmart and eBay are offering the option as a way of competing even more effectively with bricks-and-mortar retailers.

The general sense seems to be that the long-term prospects are more rosy than in the short-term, and that it will be more effective in heavily populated markets where there is a) greater competition and b) enough density to make economic sense.

"According to the National Retail Federation," the story says, "only 4.2 percent of consumers used same-day delivery frequently during last year’s holiday shopping crush. Just 7.2 percent used such a service once or twice." However, "while a relatively small share of shoppers are expected to use same-day delivery this holiday season, analysts say it will eventually gain more traction as retailers expand and improve the experiences of those who use the service.

"Also, millennials are more likely than other shoppers to use same-day delivery, according to the National Retail Federation. In 2012, 12.4 percent of consumers ages 18 to 34 used such a service, and another 17 percent used it occasionally, compared with 4.2 percent and 7.2 percent for all shoppers. Since this generation is just beginning to exercise its purchasing power, their interest in same-day delivery also suggests that demand could grow for the service over time, the trade group said."
KC's View:
I'll buy all of this … especially that the millennial generation will change the game entirely.