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Same-day and two-day delivery is at the forefront of retailers’ minds as consumer expectations surrounding expedited delivery options rapidly increase. Major retailers (think Target, Amazon, and Walmart) are rushing to increase fulfillment times, as it becomes undeniably clear that those who don’t offer it stand to get left behind. But is fast delivery all there is to it? Or are there other aspects of the fulfillment process that are tied into a successful delivery?

While January is typically a slow month for retailers following the holiday rush, Valentine’s Day can be a quick turning point for retail profitability. All of the gifts, cards and celebrations may seem effortless on the surface, but comprehensive logistics begin months in advance behind the scenes.

Last-mile delivery is an expensive part of the shipping process, comprising 28% of the total cost of delivery. That’s a huge chunk of change! Innovations in last-mile delivery may be able to reduce that figure, but senders (not recipients) will likely bear the brunt of the cost, says McKinsey & Company in their recent report, "Parcel delivery: the future of last mile.”

Providing last mile delivery to consumers is a complex undertaking in today’s market, receiving a great deal of attention in the media and from investors. Not surprisingly, e-commerce is the biggest driver of the changes that are already in motion to drastically improve options for consumers. From large retailers to local businesses, everyone can agree on one thing: that last-mile services have become a key differentiator.

Chain Store Age & IBM recently released a white paper on how retailers can better fulfill consumer needs by getting merchandise into their hands faster and easier than ever before. Here are some of the key takeaways:  

“Customer expectations for the combined brand experience are higher than ever. For brands to keep up with the agility of their online competitors, traditional retailers need to make changes to efficiently and cost-effectively get merchandise into shoppers’ hands — all while delivering a consistent, positive customer experience.” But it’s not something that can be done overnight. Improving in-store fulfillment entails creating an operational foundation that effectively leverages a retailer's store network, inventory, and staff.

By now, most merchants are familiar with the term “last mile delivery,” the final transit of a product to its destination. And the digital age has certainly put it at the forefront of their minds as retail giants like Amazon force them to offer faster and less costly delivery options - or go out of business. The fact of the matter is, today’s consumers want it, and they want it now.

What matters most to consumers when it comes to fulfillment? Convenience, options, and keeping costs low. And with $443 billion in e-commerce sales forecasted for 2017, retailers are under pressure to give shoppers exactly what they want. But implementing these last mile options is easier said than done.

Temando recently released their 2017 U.S. State of Shipping in Commerce report that surveyed over 1,200 US shoppers and 270 U.S. retailers for a close look at what retailers need to know in order to increase sales, boost loyalty, and close the gap between what they offer and what their customers want when it comes to last mile shipping and fulfillment.

This week, UPS announced it will be charging retailers a surcharge on residential packages being delivered during the peak 2017 holiday season, including the days surrounding both Black Friday and Christmas.

With the rise of online shopping, UPS handles around 30 million packages a day during their peak season, versus 19 million packages on an average day. UPS says that the new surcharges are necessary to offset the additional costs of handling the holiday influx, including having to add additional planes, trucks, and seasonal staffers. 

From buying online and picking up in store, to buying in store and shopping home, to same-day delivery and beyond, there’s no shortage of fulfillment options available to today’s consumers. But choosing the right options for your retail business is no easy feat. Boston Retail Partners recently conducted a survey of over 500 retailers that takes a deep look into today’s customer experience trends, including newer, sophisticated fulfillment options, and how this evolution is helping retailers enhance the customer experience.

Exciting things are happening in the same-day delivery space. In a recent McKinsey & Company survey of 4,700 respondents, they found that nearly 25% of consumers would pay a premium for same-day delivery. They added, “this share is likely to increase, given that younger consumers are more inclined to choose same-day and instant delivery over regular delivery.”