How Do Third-Party Delivery Services Work? Will They Benefit My Bottom Line?

Delivery is a 21st-century convenience that consumers have grown to depend on. Thanks to companies like Amazon, having purchased items shipped to your home is a norm that customers have come to expect. It does not matter if a delivery request originates from an in-store purchase or from an online storefront or menu; any delivery must be carried out quickly and accurately.

But will this be worth the expense and effort of setting up a delivery service? And is it better to take a do-it-yourself approach, or to enlist the help of one of the many third-party delivery services doing business today? It is important to develop an understanding of the basic requirements of using a third-party delivery service in order to build a picture of how beneficial this offering would be to your bottom line, or if you might be better off managing deliveries yourself, or even not at all.

Third-Party Delivery Is All About Logistics

Determining if you have the ability to manage the required logistics that go into using a third-party delivery service starts with a business review. You must understand how your business processes integrate with the requirements of a delivery partner and gain the necessary insights into the technical improvements that may be required to realize the full potential benefits on your margins. Performing your business review will take place in two sequential pieces.

First, you must look at how your processes work in your physical presence and see how these would translate into delivery. Those of you already engaged in the practice of accepting orders via phone or a virtual storefront will be a little ahead of the game here since you already have procedures in place to get order “A” to customer “B”. For those who are not yet working in this manner, you will need to look at just how you can add the routing of products from shelves or tables to a third-party service.

Technology is a key consideration in coordinating the logistics behind accurate and rapid delivery of products. The information from orders must be accurately processed and safely stored. Then, this same information must be trackable, while also giving you the ability to make it accessible to a trusted third party. You will also need a way to coordinate pickup and delivery times, using an online scheduing system that ties into your ordering platform.

Mobile and Cloud Technology: A Third Party Delivery Requirement

Point of sale business tools is a definite plus, especially when they are cloud-based and present you with mobile options. Maintaining a reliance on legacy POS systems may save you some initial costs, but these savings will quickly be erased and will ultimately become cost-intensive due to the addition of running manual processes that will get placed on your shoulders. Instead, it makes sense to upgrade or replace outdated POS technology with affordable POS tools that maximize your ROI.

Adding the blend of these technologies will give you the tools for seamlessly adding third-party delivery to your repertoire. Imagine the below retail and restaurant scenarios and compare this to how delivery services could positively impact your business.

The Boutique

A specialty boutique noticed waning sales. Although traffic on its mobile-friendly website was up, in-store traffic was down. Orders placed online were all placed using the store’s click and collect strategy. The owner was looking at ways to maximize its website and eliminate the shipping delays from its suppliers. Upon an internal examination, it was discovered that the same in-store processes for filling click and collect orders matched the process requirements of popular delivery service.

The storing of transactions in the cloud, and the ability of its POS system to effectively manage data from all sources, made for an ideal situation. These capabilities could be leveraged to build a delivery strategy that basically was an extension of the store’s current click and collect strategy. Using the mobile app of the delivery provider, customers could view, order, and pay on the store’s website, while receiving their items within hours of the order being placed.

The Business Lunch Spot

When the restaurant opened, it never seemed like traffic eased. But when a nearby office park opened, the flow of customers slowed to a trickle even though traffic in the area had increased. While the owner started going through receipts, hoping to uncover a reason for the slump, it was overheard that the phone was ringing off the hook at lunch. It was also discovered that many customers could not deal with the traffic and were unable to place orders because delivery was not an option.

After consulting with a POS expert, the owner decided to take a two-step approach. First, business processes would be updated to account for the dispatching of meals to customers via a third-party delivery service. Second, the POS system now in use would be replaced with an mPOS solution that offered a delivery app and provided the restaurant with a customizable website template that could host an up-to-the-minute menu and accept orders.

Know What to Look for When Choosing Third-Party Delivery Services

Choosing a third-party delivery service that benefits your business depends on your answers to these two questions: do my internal business processes align with how the service operates, and can my POS technology contribute to its success? Making a business case for using a delivery service is easy, especially when you have a valued POS consultant in your corner. These will serve to build a profitable foundation of success with your delivery strategy.

Adding delivery services to your business strategy requires a perfect blend of technology and process to achieve success. Our consultants at talech possess a proven mix of business wisdom and POS technology that will set you up for success, both in your business and through the use of a third-party delivery service.