Rush makes cash? Post-adoption purchasing behavior of same-day delivery in mobile commerce platforms

Abstract

Delivery service now plays a significant role in the customer experience in mobile commerce. Platforms struggle to reduce delivery lead time via advanced logistics infrastructure with an integrated IT system. Recently, same- day delivery is emerging, which delivers products within the same day the customer places an order. In this thesis, we empirically estimate the impact of same-day delivery adoption leveraging propensity score matching and difference-in-differences technique in a large-scale fashion commerce platform. Additionally, we investigate this effect varies according to the customer characteristics. The launch of same-day delivery increased the frequency of purchases by 5.02% and the quantity per order by 6.88%. In turn, overall sales raised by 62.93%. At the same time, the amount of product returns increases by 0.32%. These effects were remarkable for customers living in Seoul, who are loyal and have longer membership tenure. Furthermore, the impact strongly correlates with weekday orders and low-priced products.