In 2005 Amazon debuted two-day delivery and changed the fulfillment market forever. But what if retailers of any type or size could offer one-hour shipping?
It turns out they can. Advantage Solutions’ Quick Commerce, a new way for retailers to drive growth and simplify order management, was designed as a diverse delivery-on-demand vehicle for consumers. That delivery-on-demand scenario could be buy online pickup in store, same-day delivery, or even one-hour delivery. “It’s basically putting the power in the consumer’s hands,” says Brandon Thornell, executive vice president for Advantage Solutions.
Driving Flexible Fulfillment Through Inventory Optimization
That customer delivery flexibility will have significant impact on retailers and brands that previously didn’t offer these options, as well as those that rely on customers using third-party delivery apps. “Retailers and brands are potentially losing out on revenue because they don’t have something like a Quick Commerce to help them,” he explains.
“By keeping customers on their existing website or store app, participating retailers can now deliver fuller baskets due to a unique back-end order management system that pulls inventory from wherever it’s located in the supply chain. For instance, if any item is out of stock locally, it can be sourced from another store or even a distribution center within the retailer’s network. The customer is none the wiser as all items will be delivered by the stated due date. They will no longer receive frustrating out-of-stock or replacement messages after they check out.”
Thornell estimates the value for the delivery-on-demand space in the U.S. to be roughly $12.8 billion in 2023. Retailers saw a massive spike in demand for quick-order delivery during COVID when people couldn’t go out to visit stores. Their shopping behaviors and expectations changed, and many didn’t change back. “That’s really what drives the demand on this,” Thornell says. “It is imperative that retailers offer consumers that flexibility to get products the way they want.”
Quick Commerce is easily embedded into a retailer’s existing website or store app, sources products from wherever is necessary to deliver a full shopping cart, and provides same-day or next-day delivery through Advantage Solutions’ network of delivery partners. Unlike with third-party apps, Quick Commerce allows retailers to maintain total control over the customer experience and delivery notifications.
This software is ideal for companies looking for a cost-effective way to improve their technology infrastructure and bolster brand loyalty. This could be especially beneficial for retailers that lost market share in recent years due to outdated fulfillment systems or competition from digitally native brands.
The Quick Commerce platform is part of Advantage Solutions’ growing supply chain strategy and logistics offering, positioning the company as more than a service provider—now a multichannel fulfillment and technology partner. Thornell notes that the timing is right for a solution like this, as retail fulfillment demands enter a new phase.
“Quick Commerce is the new frontier of fulfillment,” he explains. “One of the biggest turning points in my career in consumer fulfillment was when Amazon went to two-day delivery for Amazon Prime. Customers had only known historical fulfillment of five to seven business days for delivery, and even further back when we ordered products from a catalog, it took four to six weeks.”
Four-to-six-week delivery eventually became five to seven business days, then Amazon offered it in two days, and now consumers want one day — or even one hour. The new norm is same-day, and Quick Commerce delivers just that while strengthening retailers’ tech infrastructure and market competitiveness.
This is a pivotal shift in supply chain strategy that enables brands to regain control of delivery and customer engagement—on their terms.
