Should You Start Delivering Your Product To Customers?
More companies are now giving customers the option of having their product delivered to their door. This includes products from stores, meals from restaurants and even large items like cars and boats.
Offering delivery can be convenient for many customers and could lead to an increase in business. However, you need to be sure that delivery is practical and profitable. Below are a few questions to ask yourself to determine whether you should start offering delivery.
Is there a demand for delivery?
For companies with an international or national customer base, offering delivery is often necessary. If you sell bulky goods that cannot be easily transported in a regular car, offering delivery could also be important.
However, for local businesses that don’t sell large products, it may not always be essential to offer delivery - you may find that most customers are quite happy to go into your store. The best way to determine whether there is a demand is to listen to your customers. If your customers are frequently enquiring about delivery, it could be a service worth bringing in. You should also consider what your competitors are doing. If a rival restaurant is offering a delivery service, consider whether it’s time you did the same.
How will delivery affect your profits?
Offering delivery can be expensive. As a result, you may have to add a delivery charge to make sure that you’re still making a profit. This is particularly important with small purchases - some restaurants and stores may even put in place minimum orders as well as delivery fees in order to make sure that the cost of delivery is worthwhile.
What will your delivery range be?
You need to consider just how far you’ll be willing to deliver your product. Now could be a time to open up trade to the whole country - or even other countries. Alternatively, you may want to keep delivery local. In the latter case, you’ll need to set a maximum range as to how far you’re willing to travel for customers.
When deciding a delivery range, consider your products and the cost involved to move it. Delivering heavier items, fragile items and perishable items long distances is likely to require taking extra measures.
How fast should you deliver your product?
Many customers want fast delivery, but this can often be more expensive and potentially more complicated. As a result, you should weigh up your options.
When it comes to moving freight across states, there could be the option of delivering by road, air or even water. There could also be the option of dropshipping - this involves finding a warehouse near to the customers that stock the product and delivering from this address rather than delivering from your own premises.
With restaurant meal delivery services, speed is often essential. In heavily-developed urban areas, it can sometimes be quicker to use cyclists and motorbikes than it is to use cars or vans.
What about your carbon footprint?
Offering delivery could have an impact on your carbon footprint. Some delivery options are greener than others, which could be worth researching. For instance, dropshipping could be a lot greener than using air freight.