As Americans in the 21st century, it seems as though we have a culture of "I want it cheap and I want it now." Customers want instant gratification so much so that companies such as Amazon.com are offering same-day delivery in some cities. However, instantaneous results do come with a hefty price tag. Some are more than willing to fork over a small fortune for next-day delivery or pay a yearly membership fee to get expedited shipping on some items in stock. However, many people are less than thrilled with the prospect of high shipping costs even if they do want the item in question sooner rather than later.
As a culture we've come to an interesting crossroad: Do we want our purchases on our doorstep tomorrow with a shipping fee attached or would we rather wait longer and pay less money? Both options appeal to and dissatisfy our need for cheap and fast, but which will win out over the other?
And the winner is...
For some people, picking between time and money seems rather arbitrary and it definitely depends upon the context. However, when it comes to purchasing items online and getting them shipped to a home, people would rather save a few bucks and wait a few extra days. According to Multichannel Merchant, more customers around the globe are opting for a longer wait between purchase and arrival in order to save some money.
Not only is this an emerging trend but it's one that online retailers are actually paying attention to. The source noted that shipping costs are often a deterrent for casual browsers who could potentially turn into paying customers. Shipping costs are often disregarded during the holiday season though there are still many who have not purchased items because standard shipping would not deliver said goods in time.
A new option
Given that customers want a lower sticker price and faster shipping options Mark Lore of the new online store Jet has given a winning combination of the two reported The Washington Post. Pairing the lowest prices available with the closest warehouses in a given area provides customers with quick delivery times for the lowest prices possible. This new company hasn't been around the block long enough to see how people take to it but it will most likely yield positive results.
This model may end up reinventing the supply chain as we know it and only time will tell how well it works.