Why Same-Day Delivery Is Essential and How Retailers Can Make It Work

In today’s hyper-competitive retail landscape, delivery speed has become a critical battleground. What began as a differentiator offered by tech-forward leaders like Amazon has quickly morphed into a standard expectation for most consumers. Customers now expect fast, reliable and low-cost (or free) delivery—and they’re not shy about switching brands to get it.

This shift isn’t just about customer delight—it directly impacts revenue. Faster delivery windows increase conversion rates, especially for time-sensitive categories like grocery, health and household essentials. Shoppers are also more likely to consolidate baskets and increase order value when confident about fulfillment speed.

For retailers, the implications are clear: same-day delivery is no longer a luxury—it’s an operational necessity. The challenge now is not whether to offer it, but how to deliver it in a scalable, profitable and customer-centric way.

Key Challenges and Considerations for Retailers

Delivering on the same-day promise isn’t just about hiring drivers or opening new fulfillment centers. It demands a complete rethinking of how inventory, systems, infrastructure and customer experience are orchestrated. Retailers who have successfully implemented same-day delivery at scale all excel in five foundational areas.

1. Inventory Mirroring Across the Network

To fulfill orders quickly and profitably, retailers must ensure that the right inventory is placed close to the customer. This means moving beyond centralized distribution centers and mirroring high-velocity SKUs across stores, micro-fulfillment centers (MFCs) and sortation hubs. This strategy allows for faster picking and reduces dependency on long-haul transportation, a critical bottleneck in same-day fulfillment.

Walmart is a prime example of success in this area. With over 4,700 stores across the U.S., it uses its store network as forward-positioned inventory hubs. By identifying high-demand SKUs using real-time sales data and forecasting models, Walmart places the right products closer to the customer, minimizing lead times. In fiscal year 2024, Walmart delivered 8.3 billion units via same-day or next-day service, a testament to the effectiveness of its inventory strategy.

2. Advanced Forecasting and Replenishment

Hyperlocal demand forecasting is the bedrock of same-day delivery. It requires granular insights at the ZIP code or even neighborhood level to determine what products should be stocked and in what quantities at different nodes across the network.

Amazon leads the way with predictive fulfillment models that utilize customer browsing behavior, regional trends and AI-powered demand forecasting to anticipate what shoppers will need before they click "Buy." The company’s “anticipatory shipping” model enables it to pre-position inventory across its extensive network of fulfillment and sortation centers. This system helped Amazon deliver over 9 billion items the same day or next day globally in 2024.

3. Agile Network Design

A fast and cost-effective delivery promise hinges on a nimble, modular network. This involves the strategic deployment of different facility types including sortation centers, micro-fulfillment centers (MFCs), urban fulfillment centers and the use of retail stores as local fulfillment centers.

Target exemplifies agility in network design. In addition to the fulfillment centers, the retailer fulfills digital orders from stores, converting backroom space into highly efficient pick-and-pack zones. In select metro areas like Minneapolis and Atlanta, Target has also rolled out compact sortation centers that consolidate orders from nearby stores and route them intelligently for same-day or next-day delivery. This hybrid model enables dense urban fulfillment while keeping last-mile costs under control.

Walmart has also embraced this approach by investing in next-generation sortation centers that work in tandem with its stores. These centers sort packages by ZIP code and consolidate multiple orders for optimized driver routes, improving both delivery accuracy and cost per drop.

4. Technology Integration and Orchestration

Speed at scale cannot be achieved without seamless orchestration between systems. Retailers need advanced Order Management Systems (OMS), delivery routing engines and real-time inventory visibility to dynamically allocate orders to the right node and driver. Additionally, AI-powered delivery promising engines are essential to provide customers with realistic and reliable ETA windows at checkout.

Amazon uses sophisticated internal software to determine not just the fastest route, but the most cost-efficient fulfillment path. It also employs advanced machine learning models to adjust routes dynamically based on real-time events such as weather, traffic or driver availability. Similarly, Walmart’s Spark Driver Platform and Last Mile Delivery Engine orchestrate millions of deliveries weekly through automated batching, routing and re-routing logic.

5. Customer Experience and Exception Management

The final mile doesn’t end at delivery. It ends when the customer is satisfied. That’s why exception handling, real-time communication and post-delivery support are critical components of a successful same-day program.

Shipt, owned by Target, differentiates itself with a high-touch delivery experience. Its network of personal shoppers not only delivers but also shops, substitutes items and communicates with customers throughout the process. This model is particularly effective in categories like grocery, where precision and substitution decisions greatly impact satisfaction.

Retailers also invest in live tracking, photo proof-of-delivery and flexible delivery preferences to give customers a sense of control. These small touches can significantly reduce anxiety and increase brand loyalty.

How Retailers Can Build or Leverage Delivery Capabilities

While large retailers like Amazon, Walmart and Target have built robust in-house infrastructure to support same-day delivery, most other retailers lack the technology stack, fulfillment expertise or last-mile logistics capabilities to replicate this internally. Fortunately, the emergence of third-party platforms has leveled the playing field.

Today, even mid-size and regional retailers can offer a premium, same-day delivery experience by tapping into end-to-end platforms without having to build proprietary systems or fleets. Some of these providers focus on delivery-only models by offering flexible delivery capacity and routing tools, while others offer a full shopper-plus-delivery model that handles both in-store picking and last-mile fulfillment. In addition, many provide integrations with order management systems, customer communication tools and real-time visibility. For retailers, this represents a turnkey way to meet rising customer expectations while avoiding heavy investment and operational risk.

Walmart’s GoLocal

Walmart’s GoLocal platform powers white-label last-mile deliveries for retailers like Home Depot, UrbanStems and even small regional businesses. For retailers without their own

delivery network, GoLocal plugs that gap using Walmart’s Spark driver ecosystem. It also integrates with client OMS and POS systems to streamline same-day or next-day delivery.

Target’s Shipt

Shipt offers curated delivery from a wide range of retail partners including CVS, Petsmart, Office Depot and more. Because Shipt includes not just delivery but also trained personal shoppers, it’s especially valuable for retailers that lack in-store labor or digital picking workflows. It brings a human touch ideal for categories like grocery, flowers or pharmacy where quality and substitutions matter.

Instacart and DoorDash

Both Instacart and DoorDash have evolved from gig-economy delivery apps into full-stack fulfillment partners. These platforms are especially powerful for retailers who don’t have the staffing or systems to manage order picking, routing and customer service internally.

Instacart uses trained shoppers to pick and pack orders directly from store shelves, making real-time decisions about substitutions and messaging customers through the app. This ensures quality and speed, even for retailers without internal picking processes or advanced OMS.

DoorDash has expanded its capabilities allowing its network of Dashers to both shop and deliver. For partners like Walgreens and CVS, Dashers follow structured workflows for locating and scanning items, effectively functioning as temporary in-store labor. This reduces the need for retailers to hire and train additional staff while still ensuring order accuracy and speed.

Other Players

Beyond these providers, other players like Uber Eats and Gopuff are also expanding their roles in retail fulfillment offering either delivery-only or shopper-plus-delivery models. While their scale may differ, their presence underscores the growing ecosystem of platforms retailers can leverage to stay competitive

In short, these partnerships let retailers "rent" the operational playbook of much larger players, bridging the capability gap and allowing them to stay competitive without building everything from scratch.

The Road Ahead: What Success Looks Like in Same-Day Delivery

Same-day delivery is not just a logistics challenge. It is a strategic differentiator. It shapes the entire customer journey from conversion to loyalty, and forces organizations to elevate their operations across forecasting, fulfillment, systems and service.

Retailers that succeed will be those who can balance speed, scale, cost and customer satisfaction not by focusing on any one component in isolation, but by orchestrating all of them in harmony. Whether you build your own infrastructure or plug into someone else’s, the playbook is clear: same-day delivery is the new frontier, and the clock is already ticking.