The Impact of Delivery Speed on E-Commerce Performance: A Comparative Study of Same-Day and Next-Day Shipping in Terms of Cost and Customer Experience

Abstract

The recent accelerated increase of e-commerce contributed to the value of the efficient logistics and delivery system becoming one of the most sought-after factors that promote the business performance and customer satisfaction. In this paper, the impact of speed of delivery on the performance of the e-commerce will be analyzed by comparing the use of the same-day delivery and next-day delivery based on their operational cost and customer experience. The research will also use the secondary information available in academic literature, industry reports, and previous studies to conclude the influence of increased delivery speed on customer expectation, purchase decision making and perception of quality of service. The results show that same-day delivery promotes customer satisfaction and competitiveness, but related to increased operational and logistical costs in comparison with the next-day delivery. The paper recognizes the need to make sure that the e-commerce companies would strike a balance between performance speed and cost-efficiency in their endeavor to provide sustainable performance.