The race to instant commerce

Major retailers, including Walmart, Target, and Amazon, are competing to offer more convenient delivery options to their customers.?

The push to fulfill orders within hours or minutes of them being placed is part of the instant commerce model , which has gained traction as fulfillment networks have become more robust and consumer expectations around delivery speed have changed.

Recently, Walmart announced the expansion of its same-day delivery service with “Express On-Demand Early Morning Delivery,” which will be available to all customers, including those who are not a part of its loyalty program, Walmart+.?

Walmart’s Executive Vice President, Tom Ward, said this service comes at a time when “people’s expectations keep growing,” and that customers want “more speed, more options, and more convenience.”

Earlier this month, Target also made a move toward offering faster delivery options, announcing a new paid membership option with same-day delivery as one of its major benefits.

On a similar note, in November 2023, Amazon announced it was making grocery delivery and free pickup available to all customers in all U.S. locations where Amazon Fresh is available for Prime members. This service was previously available only to Prime members, but now all customers can get their groceries both in-store and online.

Amazon also allows sellers to showcase their in-store inventory on its marketplace, enabling them to offer same-day delivery and in-store pickup via its instant commerce service, Amazon Today.

In 2023, 40% of online grocery shoppers expected their order to be delivered within two hours . While groceries and prepared foods are well-matched for faster delivery , the benefits of instant commerce extend out to other product categories as well.?

Faster fulfillment can improve conversions , make your offering stand out among competitors, and create a positive customer experience with your brand.?

In a survey from Avionos, a digital consultancy, 62% of U.S. digital shoppers said that fast shipping makes for a positive retail experience.

Additionally, implementing buy online, pick up in store (BOPIS) allows you to showcase your in-store branding and drive home an exceptional customer experience, so you can build loyalty and recognition, save media spend, and ultimately drive growth.

According to a study from PYMNTS, 47% of BOPIS users make additional purchases once in the store.

Today’s brands can leverage the established infrastructure and wide reach of delivery partners to offer their products to broader, built-in audiences, without having to invest in building an instant commerce fulfillment network from scratch.?

They can also partner with integrators to ensure that their product feeds are instant-commerce-compatible with the marketplaces and delivery services they choose.

More

Learn more about the instant commerce model, what methods brands use to enable faster fulfillment, and what should be taken into account.

The move towards instant commerce is just one of the many ways that online retail is changing. Learn what kind of tech trends will be shaping the landscape this year .