Q&A

How On Demand Delivery Is Changing Retail

Source: Placeable
Ari Kaufman

Consumers are flocking to on demand delivery, but at what cost to the retailer? Innovative Retail Technologies’ Editor in Chief, Erin Harris, caught up with Ari Kaufman, CEO of Placeable, for his insight on how on demand delivery is shaping consumer behavior and the steps retailers can take to leverage it.

IRT: How is on demand delivery changing retail?

Kaufman: Consumers are now segmented into two categories — economic and convenience buyers — as a result of online and offline shopping options.

The convenience shopper is driven by a sense of immediacy. The convenience shopper will conduct a search online, find the store that carries the product and then go buy it. These consumers are an obvious fit for on demand delivery shopping, as it adds additional convenience.

The economic buyer is attracted to the best price or deal. These online shoppers will typically sacrifice immediacy for price. They will buy online and receive their item several days later in order to capture the best deal. Over time, the economic buyer has become attracted to premium shipping opportunities, such as Amazon Prime, where faster shipping has been coupled with economic incentives to buy online. This movement represents a closer alignment of economic drivers and the desire for immediacy. Therefore, some segment of online shoppers will be attracted to on demand.

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