Thursday, 14 November, 2019

Target now offering same-day delivery on thousands of items

Target ups ante in online delivery wars, integrates Shipt shopping Target now offering same-day delivery on thousands of items
Ginger Lawrence | 16 June, 2019, 09:42

As part of its latest push, Target shoppers will be able to order 65,000 items for same-day delivery from Target.com.

Delivery is enabled by the Shipt same-day delivery platform, which Target acquired in 2017. We'll have to watch and see if other physical retailers begin to use Shipt or similar services.

One of them is Target who has now introduced a same-day delivery option for a number of its U.S. customers thanks to Shipt, a delivery startup that was acquired by the company in 2017, for $550 million.

Target's launch of same-day delivery on an order-by-order basis comes just a few weeks after Amazon announced that Prime members can get free one-day shipping on millions of items.

To make shopping same-day easier on Target.com, the brand has dedicated the site entirely to shopping experience. It's now live on desktop and mobile web browsers.

Target already has been offering other same-day pickup options for online orders through its stores. The company operates 1,849 USA stores supported by 39 distribution centers.

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In testing same-day delivery with a $9.99 fee in nine markets ahead of Thursday's announcement, Target said basket sizes grew about 10% to 15% on Target.com, compared with when shoppers were having to go through Shipt's website to get same-day delivery.

Pictured: Customers leave a Target store on August 14, 2003 in Springfield, Virginia.

Shoppers across the country seem to be trying these options, too.

Target shoppers will still be able to use Shipt's app or website to place orders. The retail giant now offers next-day delivery with no membership fee on its website for about 220,000 items for customers in Phoenix and Las Vegas. This means: Something like next-day delivery is a short-term burst of excitement, ... a short-term micro-economic war.

Meanwhile, Amazon has upgraded its free shipping option for Prime members who pay $119 a year to one-day delivery.

Target's move into same-day shipping is a smart one especially since its biggest competitors have also made advances in the space. And as more people do this, Target's fulfillment costs drop.