Remember walking into a Blockbuster Video store in 1990s and seeing your friends and neighbors picking out their favorite movies and video games? At its peak, the video rental leader was an integral part of American culture.
Enter Netflix. The company was founded in 1997 and allowed customers to rent DVDs using the internet, an innovative new idea at the time. In 2000, Blockbuster could have actually purchased Netflix, but the “anti-late fee” model didn’t jive with this major source of company income.
Faced with losses in revenue and customer loyalty as people increasingly began to use the ever-improving Netflix service, Blockbuster finally tried to jump on the no-late fee bandwagon in 2005. This was the final nail in the coffin, as customers sued Blockbuster for misrepresenting their policies.
Image via Business Insider
Adapting in the Age of Instant Gratification
Most companies didn’t make the unfortunate series of blunders that Blockbuster did. Most shifted in necessary ways to meet the demands that the new technologies brought forth, such as online shopping and mobile accessibility – in short, anything that makes the shopping experience more convenient and faster.
The model is ever-changing, however, and there is a “new kid in town.” On-demand delivery offers customers the same type of instant gratification that video streaming does, bringing their shopping experience to the next level.
When partnered with an ecommerce platform like Shopify, the circle is complete: customers can order in seconds and receive their products in the same day. As long as you are located in one of the many cities where Postmates operates, you can get started with the service pronto.
This is what the future of business looks like.
How Postmates Helps Businesses
While same-day delivery is definitely in demand, the problem that many retailers face is that offering the service is not economical. This is where Postmates and other third party delivery services come in. Postmates can help businesses get set up and running with on-demand delivery service without any of the radical business alterations that creating an in-house on-demand delivery service would necessitate.
Postmates: An Enterprise Business Revolution
Businesses that use Shopify can now activate Postmates quickly and easily through the shipping setting in Shopify.
Postmates can work wonders for both B2B and B2C transactions. Every single time a customer interacts with the website to place an order, Postmates delivery will be available as an option. This allows a level of instant gratification that customers are quickly coming to expect and that businesses have never before seen.
Could This Solve Some Supply Chain Dilemmas?
B2B communications and customer service are behind the ball when it comes to digital communications and supply chains. According to a recent report by GT Nexus, about 48 percent of customers still use traditional communication methods like phone, fax, and email when communicating with distributors, retailers, and raw materials suppliers. A whopping 95 percent of respondents say that they expect to have more automated data sharing within the next five years.
Utilizing Shopify with Postmates could eliminate some inefficiencies in the supply chain, while providing instant access to delivery tracking and more efficient means of communication. Shopify allows instantaneous order placement and a seamless experience (unlike clunky email or faxed-based ordering systems). While Postmates probably won’t be replacing weekly materials deliveries, it can certainly help accommodate business emergencies, providing fast solutions for everyone at critical junctures.
How Exactly Does Postmates Work with Shopify?
When a customer places an order using your online store, they will have the option to select Postmates as their delivery method if they want same day service. A quote for the service will be given at the time of the transaction, so the customer will pay the fee if the option is selected.
When you receive the notification of the order, all you have to do is pack it up and submit a request for a pick-up. A Postmates courier will then arrive at your store, pick up the package, and deliver it to the customer.
The rate that the customer paid is charged to your Shopify account. The invoice for shipping charges is calculated and sent either weekly or when you reach a set amount based on the value of the local deliveries. This invoice is billed conveniently through your Shopify account.
Postmates Tracking Advantage
The integration of Postmates and Shopify allows you and your customers to track the order in real-time. This allows you to provide better communications for your customers, while protecting yourself by staying on the up-and-up about what is happening between pick-up and drop-off. You will be able to track every delivery through your Shopify account, customers will receive a link to a Postmates live map.
Is Same-Day Delivery Really That Important?
According to a study conducted by Connexity and released by Econsultancy, a failure to offer same-day delivery could cause companies to lose customers. The study analyzed the responses of 6,500 shoppers in regards to their experiences surrounding holiday shopping. According to the study:
- 30% of millennials polled said that same-day delivery is a critical consideration when making an online purchase
- 10% of all shoppers polled said they had opted for same-day delivery in the last 12 months
- 50% of those that opted for same-day delivery said that they did so because they needed the item immediately (so they wouldn’t have ordered if the option wasn’t available)
Understanding the Need for Instant Gratification
According to Sigmund Freud, our instincts or id push us to satisfy needs, wants, and desires instantly. These needs, wants, and desires encompass a wide scope and include many necessities like food and water, but also include things like the newest phone or fashion item. The mind does not differentiate the immediacy of the need for these items, but catalyzes an anxiety response when instant gratification does not occur.
How Postmates Helps You Cater to Instant Gratification
By understanding and tapping into the primal need for instant fulfillment, you may increase your customer satisfaction rates greatly. Allowing customers to instantly satisfy their need to know what is going on with their delivery can help to quell the natural anxiety response, causing them to associate your company with satisfaction on a deeper level. Having this option also helps you to establish your company as one that keeps customers informed and accommodates their emotional intelligence.
Why Postmates Succeeds
While on-demand delivery service is still in its infancy, many companies have caught onto the model and started to offer the service. Postmates was ahead of the curve, however, which has given the company the advance needed to tweak delivery operations and save both delivery time and out of pocket costs for consumers.
Through innovative business practices, Postmates has secured a place of financial stability and has begun to prove their value in the on-demand market. Postmates believes on-demand delivery should be available for all as opposed to being a luxury enjoyed by few, and drives the business model with this in mind. The company has grown exponentially since its introduction in 2012 and now boasts over one million deliveries every month.
Image via Entrepreneur
Setting Up Postmates as a Shipping Option
To get started with using Postmates, activate Postmates as an option under your shipping settings in Shopify. Fill in the fields as prompted, supplying your contact details, business hours, and any special delivery information that will be needed. This will enable customers to select Postmates as their delivery option every time they order from you, as long as your hours are compatible.
By working to meet your customers’ inherent drive for instant gratification through avenues like on-demand delivery, you help to ensure that your business does not meet the same fate as Blockbuster.