One of Shipt's Target buyers fills an online grocery order.
The target carries the same delivery option both in the masses, which records the latest move to a constantly and heated delivery of war involving big-box retailers, Walmart and Amazon .
Target announced Thursday that consumers in 47 states nationwide can get items from online orders delivered the same day by paying a flat fee of $ 9.99 per order. It focuses on Shipt, a membership based on the same day delivery platform that it has earned at $ 550 million in 201
Until now, Target buyers have ordered orders the same day by being Shipt members, which cost $ 99 per year. That option is still available for everyone, Target said, but the company makes it easier for people to choose the same day delivery on an order-by-order basis, compared to signing up for an annual membership.
The Target statement is in the middle of a flood of internet retailer activity to get orders to customers as soon as possible. Both Walmart and Amazon recently announced the next day delivery options, with Walmart promising to reach nearly 75% of American consumers with faster shipments at the end of 2019.
offering its Prime member, paying a $ 119 annual membership fee, free same day delivery for more than 3 million items and for orders of more than $ 35. Non-Prime members may have of this option by paying an additional $ 9.98 per item, according to its website. And this is only for "select areas" across the United States, Amazon says.
Walmart, meanwhile, is on track to offer same day delivery for markets from a network of 1,600 stores at the end of the year – double what it was back in January. The fees for this option will vary based on the location. And in the fall, Walmart plans to start delivering grocery orders within the homes, directly to customers' refrigerators, in their markets. Still it does not say how much more this service will pay customers.
Now with increased delivery of the same day of Target, 65,000 items at Target.com will have the option to deliver as fast as one hour, the company said. Consumers can use their target credit cards to pay, giving them 5% discount. And it says that the same delivery option same day should be incorporated into the target mobile app before the holidays. It is currently live on the desktop and mobile web browser.
"With same-day delivery now available directly within the Target.com experience, we made it even easier for our visitors to shop at Target," Dawn Block, senior vice president of digital Target operation, said in a blog post.  Double shiptime membership
Due to Shipt's acquisition, Target said that the service membership base has doubled, and the number of Shipt network retailers is double. In addition to Target, Shipt still serves companies including CVS, H-E-B and Meijer. Around the holidays, it uses 80,000 buyers of Shipt, which helps pick, pack and deliver orders from these retailers. Recently it is said that the number has grown to more than 100,000 people.
Target offers other same day pickup options for online orders through its stores. This includes the free, curbside pickup option for nearly 1,400 stores, and a free in-store pickup option at all 1,850 Target stores across the US Both options on commitment orders are ready within one hour.
In the first quarter of this year, the target Shipt, curbside pickup and in-store pickup has resulted in more than half of its 42% growth in e-commerce sales, and 25 % of the same store storage in its storage. The sale of stores at least a year has reached 4.8% in the quarter.
The financial benefit of all this for the Target is that when customers choose items in stores, it's 90% cheaper for retailers than when it ships something from a warehouse, the company said. day delivery with a $ 9.99 fee in nine markets ahead of Thursday's announcement, Target said basket size grew about 10% to 15% at Target.com, compared with when consumers had to go to the website of Ships to get the same day delivery.  Fifty-three percent of consumers say they intend to put more online orders in 2019 with the aim of picking items from brick-and-mortar stores, according to a survey of Internet Retailer of 1,100 buyers taken after the 2018 holiday season. About 23% of those polled say they plan to place more orders for the same day delivery.
But with Amazon, Walmart, Target and others all competing to win customers in faster services, there is still some doubt that all the buzz around
& # 39; Not sustainable & # 39;
"We have lost customer expectations, and this is zero cost to the customer," Sucharita Kodali, a retail analyst at Forrester Research, said in a recent interview. "Other companies … someone carries the cost."
Finally, he said, "I do not think the customer experience has been kept accepting a little bit more, a brief explosion of chaos … a short war of economic warfare. it remains. "
For example, Amazon said it spends $ 800 million during its second quarter this year to move to one day delivery for Chief members. The target does not disclose the expense for expanding the same delivery the same day but said more and more customers have actually opted to use its seating and in-store options instead of sending. And as they do more, the drop of Target's fulfillment costs.