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Target Puts a Price on Same-Day Delivery

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Target Puts a Price on Same-Day Delivery

Sellers might have cringed when they heard the news that retail chain Target is now offering same-day delivery of online orders, since it puts pressure on them to offer quicker delivery too. But the good news: it shows shoppers that same-day delivery comes at a cost.

Target is offering same-day delivery for $9.99 per order, delivered by Shipt, which it acquired in December 2017.

Shipt will remain a standalone service – it calls itself a “membership-based grocery marketplace, enabling delivery of fresh foods and household essentials.” Members can sign up for an annual plan for $99 or a monthly for $14/month, and receive free delivery for orders over $35 from participating retailers. (Orders less than $35 will have a flat $7 delivery fee added to the total, the Shipt site explains.)

After being acquired by Target, Shipt stated on its website: “We will continue to run our business independently and plan to expand partnerships with other retailers seeking same-day, last-mile capabilities. Shipt is the nation’s fastest growing online grocery marketplace. We work with leading retailers and local stores to deliver groceries via a community of shoppers and a convenient app.”

According to Target’s announcement on Thursday, it has created a totally dedicated shopping experience at Target.com/sameday. “All in one spot on Target.com, guests can shop same-day eligible items (like Grocery, Household Essentials, Pets, Baby), easily order items they’ve bought before or search specific categories. It makes shopping and delivery easy and fast.”

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That will help reduce any frustration on the part of shoppers who might otherwise expect to get same-day delivery on all of the products on Target.com’s website.

Target executive Dawn Block said in the announcement, “With same-day delivery now available directly within the Target.com experience, we’ve made it even easier for our guests to shop at Target – while still getting the great value, curated product assortment and helpful guest service they’ve come to expect.”

Guests can now get 65,000 items delivered to their door in as soon as an hour with an order placed directly on Target.com. It also pointed to some perks: customers can use their Target REDcard to pay, which gives them 5% off their purchases, and they can take advantage of weekly ad promos (like buy three items, get a $5 Target GiftCard).

Read the announcement on the Target.com website.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.