The gig work industry is skyrocketing, and third party delivery services are a huge part of this sector. This type of service was already established before COVID-19.
Since we knew the epidemic had closed the world, however, these delivery services have become an integral part of the daily lives of many families.
For some businesses, using third-party services is the only thing that keeps them afloat when entire countries are locked down.
Now, smart business owners know that if a customer has to choose between going to the store or delivering an item, they can probably take the second option. And those owners are partnering with third-party delivery services to get more consumer business.
What are third party suppliers and should you consider outsourcing them to your products and services? Here’s what you need to know about how to partner with a third party delivery service
Is third party delivery involved?
Managing a delivery service as part of your business can be a costly investment that doesn’t always pay off. On top of paying employees, you must cover their auto insurance commercial policy. Then, add extra insurance costs for staff vibrations and other essentials, and if you’re not a big chain, delivery rarely pays for smaller stores.
Third-party delivery services make it possible for small businesses to compete with chains by reaching out to potential customers and meeting a need. Instead of paying the cost of the internal delivery driver themselves, the owners partner with the external delivery.
The cost of outsourcing is negligible considering the additional customer load. Third-party delivery services work intermediately, allowing businesses to focus on fulfilling customer orders.
Delivery services you see everywhere
So far, you have seen examples of these third party delivery services working everywhere They are in grocery stores, gas stations and restaurants. You may even have a delivery service that brings you orders for alcohol and your clothing.
Businesses hire third parties to meet the needs of consumers without incurring additional staff or delivery costs. Each company charges a delivery fee for the business, which is often a flat rate. Some businesses recover the fee by charging the customer.
Some of the top examples of the country’s top third party delivery services include:
- Dordash is a go-to company for restaurants and fast-food orders, but they now include grocery and convenience store delivery. The downside of DoorDash is that they often charge up to 25% per order.
- GrubHub works the same as DoorDash, but charges only 3.05% and a smaller processing fee and 10% delivery fee.
- PostMate / Uber It’s become one of the leading delivery services in the country. Their fees are based on commission and sales tax. Uber charges a $ 350 processing fee to partner with them, and the commission can be 20-30% hefty.
- Instacart has made a name for itself as a grocery and alcohol delivery service. Other grocery delivery services like Walmart have tried to copy the model, but InstaCart is still in the lead.
- Shipt is a new company on the third-party delivery service roster. They are owned by Target, but they deliver a wide range of products and easily ship your products across the country.
With delivery fees, processing and set up costs, and commissions in mind, it’s up to you as a business owner to decide whether to hire a delivery service. Contact third party delivery experts to get the right cost to partner with some companies in your state.
Why you should consider partnering with at least one delivery service
Even with the costs involved, many stores and restaurants still use third party delivery services. What’s the catch?
The reality is that there is power between numbers and visibility. Customers who don’t know you are more likely to order from you if your store displays their favorite delivery service on the dashboard.
If you want to reach new customers and bring repeat business, this is a profitable way to do it. Instead of digging into your marketing budget and investing in social media or newspaper ads, consider the cost of using a distribution service as a form of advertising.
You will also increase the profit
It is a common man’s behavior to seek more for their money. If they do pay a delivery fee anyway, they will often add more to their cart that will be in their personal order.
Third party apps also make it easy to upsell. For example, instead of ordering a pizza, the app may suggest. Do you want to add an appetizer or a side? A drink? How was your last order?
It’s user-friendly, and customers appreciate it. If it is a simple click of a button, they will be more likely to add items.
Customers are familiar with the business to increase their online spending. A customer who is willing to pay extra to avoid leaving home is not going Love Increased prices, but they will probably pay for it anyway.
This is now a normal part of online retail, so they have become accustomed to big price tags. And a small increase can add a buffer to your cost of delivery services.
Ready to sign up? Here’s what you need to do
Instead of going from website to website with every possible third-party delivery service, look for a ubiquitous site that shows your options, benefits, and fees. Learn how to create an account and find out if the payment software you currently use is compatible with delivery services.
You have complete discretion over what items you post on your profile. Add everything, or stick to a few crowd choices and customize them to get the user’s attention.
From there, it’s a simple process of choosing your payment options and optimizing your profile. Once customers see your business active on their preferred delivery platform, orders will start rolling out. The rest is in the hands of your expert staff