THG Fulfil says late cut-off for next-day delivery drives higher sales
THG Ingenuity had some interesting news this week about the value of next-day delivery and free delivery for e-tail orders.
The e-commerce solutions provider (which is now a privately held company after THG separated it out last year) operates its THG Fulfil arm and said that following an analysis of around 40 million customer orders, its next-day delivery offer (which has a later-than-most cut-off time) 'is driving customer acquisition and higher value orders for brands and retailers' in the beauty and wellness & nutrition sectors.
The company allows 'next-day' delivery (NDD) for orders placed up until 1am (effectively making it same-day) and it said 23% of NDD orders now come from first-time customers after midnight.
The analysis also showed that between 10pm-11pm, a fifth (20%) of wellness & nutrition NDD orders come from first-time customers, with this rising to nearly a quarter (23%) between 12am-1am. For beauty consumers, where urgency tends to be lower, 8% of post-10pm orders come from new customers. THG itself largely uses THG Fulfil for its Beauty division fulfilment.
The company said the data shows 'THG Fulfil has captured the late-night shopper demand with its market-leading 1am NDD offering'.
'The trend is clear. Late-night fulfilment drives commercial success: our customers are receiving new orders while their competitors sleep,' said Tom Killeen THG Ingenuity COO.
THG Fulfil's data analysis shows that 82% of all NDD orders are placed after 2pm, and more than a quarter (27%) are placed after 10pm (up 7% versus 2024), 'offering a clear incentive for both customers and retailers to extend NDD order periods as late as possible'. The analysis also reveals that 'free delivery has generated an 11% uplift in subsequent order value, delivering an impressive 10x return on investment'.
Killeen added: 'We've seen first-hand how fulfilment can make or break customer experience and brand reputation in e-commerce. We've always believed fulfilment is a growth driver, impacting customer retention and acquisition – our data now confirms that delivering on the demand for immediacy has a direct impact on new customer acquisition and attracting high-value shoppers willing to pay for premium, rapid delivery via multiple options.'
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