For India’s ECommerce Startups, Delivery Experience Has Become A Key Differentiator

On a Friday evening, you placed an order for a handbag from your favorite eCommerce site — let’s call it B1. Two hours later, you found a faster delivery option for the same bag on the new shopping site B2. Seeing their ‘Easy 7-day Returns Policy’, you decided to order the same handbag from B2. The package from B2 was already at your doorstep by Saturday afternoon, while B1 couldn’t deliver till the next business day (Monday), when you inevitably had to reject it.

Price, quality and all other factors being the same, you are more likely to order again from B2 rather than B1. It is the eCommerce delivery speed where B2 managed to win over a competitor’s loyal customer. Amid today’s cut-throat competition in India’s eCommerce scene, startups are leveraging delivery experience as a key differentiator to stay ahead of the curve. Startups that can provide a superfast and seamless delivery experience are the ones with the competitive advantage in the crowded eCommerce economy.

Fierce competition is fuelling the eCommerce boom

In India, eCommerce has seen unprecedented growth in recent years. According to a report by the Indian Brand Equity Foundation, the eCommerce market in India is expected to reach $200 billion by 2026, with a compound annual growth rate of 51%. As a direct consequence, the competition among eCommerce startups in India has also become fierce. Startups are looking for ways to differentiate themselves from their competitors and deliver a better customer experience. In fact, this competition is enticing more and more entrepreneurs to start their startup journey in the eCommerce hotbed.

Speed of eCommerce delivery as the differentiating factor

One of the most popular ways that startups are trying to eliminate competition is by providing fast and efficient delivery. According to a survey by BusinessWire, 65% of consumers are willing to pay more for faster, reliable delivery. With the rise of quick commerce and hyperlocal logistics, customers have come to expect quicker delivery times, and even 2-day delivery is considered too late. Startups like Blinkit, Zepto or Dunzo managed to retain customers and gain repeat business by delivering faster than customer expectations. In the non-grocery space, leading tech-enabled logistics players like Blowhorn managed to drive up sales revenue by as much as 30% with same day delivery for their partner brands.

Flexible delivery for the win

Another way that startups are leveraging delivery experience as a differentiator is by offering flexible delivery options. With the rise of on-demand delivery services, customers have come to expect the ability to choose when and where their products are delivered. Startups that offer flexible delivery options such as same-day delivery, late evening delivery, and even delivery on holidays are able to stand out from their competitors with greater customer delight. The cherry on the cake is when an eCommerce brand allows you to choose the most suitable delivery slot as per your convenience and availability.

Technology to increase transparency in eCommerce deliveries

In addition to fast and flexible delivery options, startups are also making the best use of modern technology to enhance the delivery experience. Logistics players like Blowhorn are using powerful tracking software to track parcels in real-time and provide updates on delivery status to customers. As an online shopper, being able to track your order not only improves your delivery experience but also helps to build trust and loyalty.

Penetrating the rural landscape

If you are not residing in a Tier-1 city, you might have often been disappointed to see your favorite eCommerce store does not deliver to your location. This is where many new eCommerce startups are winning the game.

One of the key challenges that eCommerce startups face in India is last-mile delivery. The country has a vast and diverse landscape, which makes it difficult to deliver products to remote and rural areas. The highest-rated startups are now leveraging technology such as drones and autonomous vehicles to overcome this challenge and deliver products in a timely and efficient manner to remote pincodes.

With the rise of eCommerce in India, it's more important than ever for startups to focus on delivering a superior customer experience. By leveraging delivery experience as a differentiator, startups can attract and retain customers, and ultimately, grow their businesses beyond expectations.

Conclusion

While brands continue to compete over price points and discount offers, delivery speed and reliability have been the gamechanger for the best eCommerce brands. Smart entrepreneurs are harnessing the best practices in last-mile delivery to optimize speed and efficiency, thereby making a huge difference in customer retention as well as acquisition. As a matter of fact, customers are automatically inclined towards a brand which provides faster and more reliable deliveries, even if the price point is a tad higher. If you wish to stay in the game for the long run, it is paramount to ensure that your deliveries are seamless and foolproof. The best way to do so? Partner with a dedicated and experienced third-party logistics (3PL) service with a proven track record like Blowhorn and watch your brand’s growth skyrocket.

Don't miss out on the latest eCommerce growth hacks and tips. Click here to get our blogs, case studies, newsletters, and much more delivered straight to you!