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4 Reasons to Add On-Demand Services to Your Business

4 Reasons to Add On-Demand Services to Your BusinessOn-demand is a recent addition to many brick-and-mortar businesses that has gained popularity for the convenience factor it offers shoppers. The result has been an increase in the service experience scores of many retailers. These retailers allow customers to order online or through a mobile app. Then, they can pick up those items in a nearby store on their preferred schedule. 

This on-demand service also provides same-day delivery to homes. Services like Uber Eats, Grub Hub, and Shipt have appeared to fill this need. Plus, grocery store and office supply brands are offering same-day home delivery or in-store pickup. It sounds like a great idea -- and it is. However, there are many other reasons to consider adding on-demand services to your business.

1. It addresses the shopping preferences of today's audience.

Today's consumers are used to instantaneous responses. This could involve how fast a website loads or how quickly they can complete the checkout process. They also want to be in control of when they receive the items, especially during the holiday season. That's why slow delivery times have caused many consumers to abandon their shopping carts. 

Now, the on-demand service feature speaks directly to those consumers who want an item now but don't want to spend time in the store. Instead, they want to discover what they want from the convenience of their mobile device or desktop. Then, if it fits their schedule they can pick it up or choose same-day delivery.

Read More About Women's Payment Preferences

2. The on-demand economy isn't going away anytime soon.

Although millennials may have started the trend, the on-demand economy is now embraced by numerous generations of consumers. Many age groups appreciate that they can receive what they want on their terms. And, with more consumers deciding they don't want to own a car but use services like Uber or Maven instead, this on-demand economy will grow. 

According to the National Technology Readiness Survey (NTRS) by Rockbridge Associates, the on-demand economy grew 58% in 2017. The same study found that "participation in the on-demand economy has increased by two-thirds (66%) since 2016, and an estimated 41.5 million consumers purchased on-demand goods or services in 2017 (compared to 24.9 million in 2016). At the current growth rates, we estimate that the total consumers in the U.S. will be about 56 million by 2018 and about 93 million by 2022." Additionally, the same study found that total spending for on-demand products and services at $75.7 billion in 2017. This is compared to $48.0 billion in 2016. The categories in the on-demand economy with the most growth include housing, transportation, and food delivery.

3. Specialized on-demand services provide additional revenue streams.

This on-demand model is allowing existing retailers to consider more options to reach different types of customers that they may have previously never been able to reach. This also provides a way to scale up the business. It's exactly why a company like Amazon has started opening brick-and-mortar stores and purchased Whole Foods. Now, the online retailer can reach those consumers in new areas like perishable groceries or other specialized items that no one wants to buy online. 

Also, many restaurants can now partner with services like GrubHub or DoorDash to reach those consumers with food delivery. Many restaurants that previously were not willing to offer this on-demand service can now do so without adding costs. This means they can enjoy this extra revenue stream and satisfy more of their patrons. 

Other services like Storefront have emerged. This company helps smaller businesses that did not have the funds to finance their own physical storefronts. Storefront has created one marketplace to provide their products and services for greater revenue opportunities. Additionally, the on-demand trend has led to the great financial success that may not have otherwise occurred.

4. On-demand is influencing more industries to innovate.

Numerous industries have been previously noted as slow to innovate, choosing to rely on old methods for inventory, logistics, and service delivery. Among them are the grocery and transportation industries. However, this in-demand model has appeared and, with it, the technology that allows these industries to advance into a modern business with lower costs, greater efficiency, and an exceptional service experience. 

The appearance of technology like the Internet of Things (IoT) devices that allow consumers to order from home or quickly refill products has also influenced how quickly these industries are now innovating their logistics and inventory processes. Further, startups within these industries are realizing that the on-demand platform also offers more funding opportunities. Additionally, the access to real-time data from these on-demand transactions is also directing how they innovate.

Join the On-Demand Trend

With so much to offer your business, now is the time to add this service, creating a faster checkout that gives customers control over the delivery process and enhances the overall customer experience.


BluePay is pleased to bring you this valuable information from, Due, makers of a free digital wallet that allows users to easily make and accept payments online.

Topics: Partner Posts, E-Commerce and Online Payments, Small Business Tips, Payment Trends

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