Best same-day delivery companies in Saudi Arabia and the Arab world: key challenges and solutions
Oct 22, 2023
The value of the same-day delivery market globally reached about $6.055 billion in 2021, and it is expected to reach $34.424 billion by 2030, with a compound annual growth rate of 21.3% during the forecast period (2022-2030).
This explains the significant boom that same-day delivery service has created in the world of e-commerce and delivery companies for commercial activities, especially with the tremendous technological development that has cast its shadow on the logistics sector.
But, what is same-day delivery service, what are its benefits, and the most prominent challenges facing businesses to provide this service?
All this and more will be answered in the following lines.
First, what is Same-Day Delivery?
Same-day delivery is a leading logistical term in the field of e-commerce that refers to the delivery of orders to consumers within hours or on the same day the order is completed (maximum 24 hours).
It is worth noting that same-day delivery services have contributed significantly to enhancing the competitive value of various commercial activities, especially small and medium-sized ones that seek to compete with major retailers, gain customer satisfaction, enhance their loyalty to the brand, and thus increase the return on investment.
Same-day delivery services have multiple benefits for different commercial activities, and we can summarize these benefits in quick points as follows:
Gaining customer satisfaction and enhancing their loyalty to the business.
Boosting sales movement and thus increasing profits.
Meeting customer expectations regarding on-time shipment delivery.
Improving the operational efficiency of shipping operations and enhancing competitive value.
Preventing spoilage of time- and temperature-sensitive goods such as food, beverages, and fruits.
It is necessary to point out that there is a difference between the terms same-day shipping and same-day delivery, which we will discuss in detail in the following paragraph.
What is the difference between same-day shipping and same-day delivery?
There is confusion between the terms same-day shipping and same-day delivery, as they are used interchangeably by some businesses or consumers. We can clarify the fundamental difference between the two terms as follows:
The term same-day shipping refers to shipping orders to customers on the same day the order is completed. This means that the merchant will prepare and ship the orders on the same day, but the shipments may take a day or more to be delivered to consumers.
This is in contrast to the term same-day delivery, which refers to delivering the shipment to the customer on the same day the order was placed. This means that the merchant is obliged to prepare the orders and deliver them to consumers during the day according to a specific time frame (maximum 24 hours).
In order to avoid this confusion between the two terms by consumers, the difference between them must be clarified within your shipping policies and options, which enhances credibility and transparency.
What is the importance of same-day delivery for e-commerce stores?
Same-day delivery is a fundamental element in enhancing the competitiveness of e-commerce stores and achieving their distinction in a digital environment characterized by rapid change and high customer expectations. This type of service represents a direct response to the modern consumer's need for immediate gratification, which contributes to improving the user experience and reducing the shopping cart abandonment rate. Same-day delivery also reflects the store's ability to balance operational efficiency and customer satisfaction, which practically translates into an increase in loyalty rates and an improvement in the brand's mental image.
On a strategic level, same-day delivery enables stores to penetrate more dynamic sectors and occasions, such as fast-moving consumer goods or peak seasons like holidays and discount seasons, which gives them a competitive edge that is difficult to match with traditional methods. This is in addition to contributing to accelerating inventory turnover and reducing costs associated with storage and returns. With the availability of flexible logistical solutions and accurate tracking technologies, fast delivery is no longer a luxury but a strategic necessity for stores seeking sustainable growth and capturing customer satisfaction in record time.
It is worth noting that the process of delivering orders to consumers goes through many diverse stages, which we review in this paragraph.
What are the most important stages of same-day order delivery?
The same-day delivery process involves multiple stages as follows:
Order Completion Stage:
In this stage, the customer shops, selects the products they want to buy, puts them in the shopping cart, and then chooses between the various shipping options and payment methods until they reach the final step to complete the order successfully.
Order Processing Stage:
After the customer completes their order and selects the same-day delivery option, the order moves to the processing stage, in which the availability of products in stock is confirmed, their specifications are matched, and the address of the location where the delivery will take place is confirmed.
Preparation Stage:
In this stage, the order is prepared inside the warehouse in terms of packaging and wrapping the products and preparing them for shipping so that they reach the final consumer with the best possible quality.
Receipt and Delivery Stage:
In this stage, orders are directed to your drivers or the contracted shipping company to receive them from the warehouses or from nearby branches to deliver them to the customer at the specified time and place.
And you may ask:
Is same-day delivery available in all cities?
No, this service is not available in all cities of the Kingdom of Saudi Arabia. Rather, it is largely concentrated in major cities that enjoy advanced logistical infrastructure, such as Riyadh, Jeddah, Dammam, and Mecca. These cities benefit from their proximity to distribution centers and express road networks, which allows shipping and delivery companies to carry out operations faster and more efficiently.
As for small cities or remote areas, the availability of same-day delivery faces challenges related to distance, the number of storage centers, and demand density. The high operating cost and low economic feasibility in some locations make companies tend to deliver within two days or more instead of the same day. However, there are tangible efforts to gradually expand the scope of this service by investing in additional logistics centers and adopting artificial intelligence technologies to improve delivery routes, especially in light of the Kingdom's increasing support for the e-commerce sector within Vision 2030.
It is worth noting that it is necessary to search for and contract with specialized shipping companies in same-day delivery service to ensure providing the service with high professionalism and excellent effectiveness to consumers. Here are some nominations for experienced shipping companies in this sector.
What is the fastest same-day delivery company in Saudi Arabia?
First, it must be noted that the following list does not represent a real classification of shipping companies that offer same-day delivery service for shipping products, but rather they are just examples and nominations to help you choose the best according to your needs and requirements. Here is the list:
Postaplus
Postaplus is considered one of the most prominent companies specialized in providing logistical services and express delivery solutions at the local and international levels. The company offers a wide range of services, including same-day delivery, warehousing and packaging, international express shipping, customs clearance, etc. Postaplus relies on a modern infrastructure and harnesses technology to enhance customer experience and provide reliable services that keep pace with changing market requirements.
Ajeek
It is one of the Saudi companies specialized in providing express delivery services within cities, with a special focus on same-day delivery service. The company works to enhance the user experience by providing reliable services, speed in delivery, while maintaining the quality of service to meet the needs of individuals and local companies.
Naqel Express
The company was established in 1993, and it is one of the most prominent providers of logistics services and supply chain solutions in the Kingdom of Saudi Arabia and the Middle East and North Africa region, with its headquarters in Riyadh. The company is distinguished by owning the largest delivery network in the Kingdom of Saudi Arabia, with 4,900 delivery points covering all cities and villages, in addition to owned facilities in major airports such as Riyadh, Jeddah, and Dammam.
AyMakan
It is a company specialized in providing integrated logistical solutions with a focus on door-to-door delivery services, especially for the e-commerce sector. The company offers a variety of services, including same-day delivery, warehousing, and returns management, in addition to its endeavor to support the success of its customers by providing flexible and secure services, with a focus on using the latest technologies to ensure a distinguished user experience.
Shipa
It is a leading company that seeks to simplify shipping and delivery operations for individuals and companies through advanced technological solutions. Shipa offers an integrated set of services that include digital shipping through Shipa Freight service, e-commerce solutions through Shipa Ecommerce service, and express delivery services within cities through Shipa Delivery service, which provides flexible options such as same-day or next-day delivery. Shipa operates in several Gulf countries, including Saudi Arabia, the UAE, and Kuwait, and helps small and medium-sized companies expand in local and global markets through smart and fast logistical services.
Safe Arrival
It is one of the fastest-growing logistics companies in the Kingdom of Saudi Arabia and the United Arab Emirates. The company offers a variety of services, including warehousing, transportation, and same-day delivery, with a focus on meeting the needs of the e-commerce sector. The company seeks to provide innovative and effective logistical solutions, with a focus on using modern technologies to simplify operations and improve customer experience.
Jonex
It is a Saudi company based in Riyadh, specialized in providing integrated logistical solutions for companies of all sizes. It offers various services, including warehousing and same-day delivery, with a focus on supporting start-up companies through prepaid packages at competitive prices. Jonex's operations cover more than 100 cities within the Kingdom, benefiting from its capabilities in transportation and warehousing across the Central, Western, and Eastern regions, with plans for expansion into the Southern region. The company is committed to providing high-quality services, with a focus on using modern technologies to ensure efficiency and reliability in meeting the needs of its customers.
We point out that you can connect and deal directly with these companies as soon as you create an account on the OTO platform, the leading shipping gateway in the Arab world and Turkey, which allows you to connect with more than 400 local and international shipping companies to enjoy various shipping services, especially same-day delivery, without the need to conclude binding contracts with shipping companies. This is in addition to offering these services at reduced and competitive prices with discounts of up to 90%, and allowing the possibility to easily ship, manage, track, analyze, and retrieve your orders through a smooth and simple control panel.
Businesses, in their different forms, face many challenges to work on providing same-day delivery service with the best possible quality to consumers, the most prominent of which we review below.
The most prominent challenges facing e-commerce store owners for same-day delivery and their solutions
Various commercial activities face some challenges as a result of providing same-day delivery service, and among these challenges are:
First: High shipping cost:
The high cost is one of the main challenges facing commercial activities when providing same-day delivery service to consumers, as this service requires reliance on express shipping companies, whose services are often more expensive than traditional delivery services.
The high shipping cost leads to a decrease in profits for commercial activities, resulting from a decrease in customer satisfaction due to their feeling of frustration at the high shipping prices and then their reluctance to complete purchases.
The reasons for the high shipping cost when providing same-day delivery service are due to:
Logistics costs:
Same-day delivery service may require additional investments in infrastructure and technology to achieve speed and efficiency in the shipping and delivery process. These costs include, for example, updating inventory management systems, packaging, tracking shipments, and employing additional work teams to enhance operational efficiency.
Reliance on fast transportation methods:
To achieve efficiency and effectiveness with same-day delivery, commercial activities need to use fast transportation methods with trucks and airplanes, which makes them expensive compared to traditional transportation methods, and requires special contracts and arrangements with shipping companies.
Dealing with limited quantities of orders:
This is one of the reasons for the high cost when providing same-day delivery service, because the shipping cost depends on the size of the shipment, and therefore the shipping cost per order will be relatively high for commercial activities with limited orders.
In order to overcome this challenge, it is necessary to:
Reliance on innovative solutions
Such as shipping gateways like OTO – the leading shipping gateway in the Arab world – which allows you to connect with more than 200 local and international shipping companies and provide same-day delivery services at reduced prices with discounts of up to 90%, in addition to the ability to control all operational processes from a single, simple, and easy-to-use control panel, and you can access all this by creating an account on OTO for free.
Reducing distances and time:
The high cost of shipping can be reduced by bringing products closer to customers by establishing regional distribution centers, or benefiting from local distribution networks to reduce the distances and time required for delivery.
Prioritization:
It may be useful to offer same-day delivery service to a specific category of customers or for high-importance orders. By prioritizing, businesses can achieve a balance between shipping cost and product value or customer satisfaction level.
Second: Good planning for resource management:
Providing same-day delivery service requires careful planning for the use and management of available resources, including inventory, means of transportation, delivery methods, and other important matters that require businesses to deal with professionally to provide same-day delivery service with high efficiency and quality to consumers.
To do this, commercial activities must take into account many aspects, including:
Communication and coordination:
Businesses must provide effective communication channels to communicate with drivers, customers, and support teams. Good coordination helps in meeting specific customer requirements and dealing with any unforeseen challenges or changes in the delivery schedule for same-day orders.
Planning routes and paths:
It is necessary to determine the optimal routes and plan the paths based on the geographical location of customers and the volume of orders. Data analysis technologies and route planning systems can be used to improve delivery efficiency and reduce waiting time and distances traveled.
Delivery timing:
Businesses must provide same-day delivery service according to a specific time period, and a flexible delivery plan must be put in place to deal with unforeseen challenges or potential delays. For example, shipment tracking systems can be used to provide instant updates to customers about shipment movements and maintain delivery transparency and better time management.
Third: Difficulty predicting products with increasing demand:
One of the biggest challenges facing small and medium-sized businesses that offer same-day delivery service is the difficulty of predicting the products with increasing demand from consumers to prepare them in advance. This is due to the lack of data, which causes inventory shortages and failure to meet customer requirements quickly and effectively.
To overcome this challenge, it is necessary to:
Analyze available historical sales data to predict the orders that will be increasingly demanded by consumers in the future.
Rely on inventory management programs such as the advanced OTO PACK system to monitor and manage your inventory movement efficiently and professionally and alert you before a product that may be a customer demand runs out.
Use leading technological solutions such as artificial intelligence and machine learning technologies to analyze consumers' purchasing patterns and know their preferences, and thus predict future consumer needs.
Fourth: Accurate order processing:
Errors resulting from order processing directly affect the same-day delivery service for different businesses. For example, an incorrect delivery address may affect the specified time for the delivery process, and an inventory shortage may affect the delivery of orders at the specified times. All of these are errors that must be avoided to ensure orders are delivered at the specified times. To do this, it is necessary to:
Rely on an advanced order management system that allows you to control your orders, review their details accurately, and display the addresses on the map to ensure their correctness.
Direct communication with customers to review and confirm the accuracy of the information.
Continuously update the inventory and avoid allowing in-demand products to suddenly run out.
Fifth: Inventory management and monitoring:
Another challenge facing businesses is inventory management and monitoring. In order to provide same-day delivery service professionally, incoming and outgoing inventory must be tracked, and the inventory must be constantly updated through the e-store to ensure that a product that is not actually available is not ordered, which then affects its same-day delivery, leading to a loss of confidence in the brand and loss of customers.
Sixth: On-time delivery:
Customers who chose the same-day delivery service expect their shipments to arrive as quickly as possible, and these expectations represent the challenge for businesses. If the expected delivery period is long, customers may go elsewhere to shop and buy.
In order to meet these expectations, some businesses may need to use a specialized external source to deliver shipments on the same day efficiently, and they may also need to provide a strong shipment tracking system or use the best shipment tracking websites so that customers can track the path of their shipments, monitor their movements in real time, and know the specific time for their delivery.
Seventh: Weak infrastructure:
The weak technological infrastructure in some Arab countries, as well as the unintegrated road network, represents a major challenge for various businesses that want to provide same-day delivery service to their customers. This pushes them to intensify efforts to ensure shipments are delivered on time to gain customer satisfaction.
In order to provide same-day delivery service professionally, here are a set of tips you can use to gain customer satisfaction and enhance their loyalty to the business.
General guidelines for providing same-day delivery service professionally to consumers
Invest in technology to develop the infrastructure of your business to speed up the same-day delivery process and make it more efficient by relying on order management systems, warehouse management systems, tracking systems, etc. You will find all this combined in one shipping gateway, OTO.
Be keen to provide excellent customer service to be able to respond to inquiries and questions and solve problems that may arise in real time.
Pay attention to the quality of packaging and wrapping to ensure products are delivered with high quality, and try to personalize them to provide a unique delivery experience to your customers.
Determine the means of transportation that will be relied upon based on the geographical areas that will be covered to provide same-day delivery service.
Cooperate with external sources to raise the efficiency of the same-day delivery process for your business.
Be prepared to face various challenges that may arise, such as: an increase in the volume of orders, or problems occurring during shipping that caused damage to the products, or traffic congestion, and other challenges that require you to put in place contingency plans and take quick measures to overcome them and deliver the products as quickly as possible and with the best quality.
Ensure that correct and clear information is provided about the available products, costs, and specified times for same-day delivery by setting policies and conditions to avoid any misunderstanding or communication breakdown.
Collect feedback and comments received from customers and use them to improve the same-day delivery service in the future.
Continuously review and evaluate the performance of the same-day delivery service by analyzing data and extracting useful numbers such as on-time delivery rates and service satisfaction rates, and use this information to identify areas that can be improved to provide the service with the best possible quality.
Conclusion
Same-day delivery service requires effective logistical management that contributes to controlling inventory as well as means of transportation and choosing the best routes to ensure shipments arrive as quickly as possible and with the best possible quality.
It is worth noting that there are innovative technological trends that will contribute to providing this service in an innovative way, including, for example, relying on self-driving trucks, which will work to improve the efficiency of same-day delivery service and target remote areas that could not be reached by traditional methods, as well as relying on robots inside warehouses, which will work to carry out packaging, wrapping, and handling operations quickly and accurately, and this will contribute to speeding up the same-day delivery process better.
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