Direct Store Delivery Statistics, Trends And Facts 2023

Direct Store Delivery (DSD) is a retail strategy where manufacturers or wholesalers deliver products directly to stores, bypassing distribution centers. DSD can help improve inventory management, reduce costs, and increase sales.

In this blog post, we will explore Direct Store Delivery statistics that highlight its importance in the retail industry.

Direct Store Delivery Stats

Statistic	Value
Strength of brand loyalty compared to retailer loyalty	500% [5]
Percentage of time customers go to a competitive store if the product they seek is not available	55% [5]
Percentage of time customers choose a competing brand if the product they seek is not available	11% [5]
Percentage of Amazon shoppers who tried to purchase the product first at a physical retailer	24% [5]
Potential margin of error in inventory accuracy	40% or as low as 20% in frozen [5]
Percentage of all retail sales completed online in 2019	10% [1]
Percentage of global consumers who have shopped online in the previous three months	82% [1]
Percentage of US consumers who begin their search on Amazon	68% [1]
Amazon.com‘s revenue in 2019	$280.5 billion [1]
Amazon’s market share decrease from before COVID-19 outbreak to April 2020	42% to 34% [1]
Percentage of Amazon deliveries fulfilled within 24 hours	72% [1]
Percentage of shoppers in the US who choose Amazon due to free shipping	79.8% [1]
Other factors that influence shoppers to choose Amazon	Broad selection of offers (68.9%), Prime membership (65.7%), and best pricing (49.2%) [1]
Percentage of furniture in the US expected to be sold online and delivered to customers’ homes by 2023	32% [1]
Percentage of total alcohol sales in the US completed online	1% [1]
Percentage of US consumers likely to purchase food online due to the Coronavirus	41.7% [1]
Percentage of consumers who don’t expect to spend more on grocery delivery due to the outbreak of COVID-19	61% [1]
Percentage of consumers who will buy more groceries online due to COVID-19	17% [1]
Projected food delivery industry revenue in 2024	$182 billion [1]
Percentage of customer complaints with food delivery related to mismanaging the quality of service	70% [1]
Most common food delivery complaints	Food isn’t warm or fresh enough (17%), late delivery (16%), incorrect order (12%), and customer service ignores notes or instructions (12%) [1]
Biggest complaint of delivery personnel	Food orders not being ready for pick up (52%) [1]
Percentage of consumers who choose delivery over takeout if the restaurant is more than 3km away	79% [1]
Percentage of consumers who pay up to $50 per delivery when ordering food online	34% [1]

Direct Store Delivery Market Size and Growth

1. The global direct store delivery market is expected to reach $1.19 trillion by 2027.
2. In 2020, the North American direct store delivery market was valued at $37.97 billion.
3. By 2025, it is estimated that the global direct store delivery market for the food and beverage industry will be worth $119.5 billion.
4. The global direct store delivery market is expected to grow at a CAGR of 6.5% from 2020 to 2027.

Statistic	Value
Global ePharmacy market size by 2026	Over $177 billion (17.2% CAGR) [1]
Increase in market value from current value to 2026	643% [1]
Retail industry’s market share of gamified solutions	28.6% [2]
Percentage of mail American households receive that is marketing mail	58% [3]
Percentage of B2B marketers’ budget assigned to direct mail marketing and print advertising	18% [3]
Increase in sales and inquiries with direct mail compared to email marketing only	28% and 77%, respectively [3]
Direct mail conversion rate	28% [3]
Most effective marketing methods for generating leads	SMS (102%), email (93%), direct mail (28%) [3]
Percentage of email addresses abandoned due to excessive marketing emails	57% [3]
Percentage of millennials who consider postal mail effective in driving website visits, store visits, or purchases	30% [3]
GrubHub’s share of the online ordering market in NYC	53% [4]
Postmates’ share of the online ordering market in Philadelphia	1% [4]

Direct Store Delivery Market Segments

1. The beverage segment holds the largest share of the direct store delivery market, accounting for 40% of the market in 2020.
2. The food segment is the second-largest segment of the direct store delivery market, accounting for 30% of the market in 2020.
3. The personal care and household segment is the third-largest segment of the direct store delivery market, accounting for 15% of the market in 2020.
4. The remaining 15% of the direct store delivery market is composed of segments such as tobacco, pharmaceuticals, and automotive parts.

Direct Store Delivery Geographical Distribution

1. In 2020, the United States had the highest market share of the direct store delivery market, accounting for 74% of the market share in North America.
2. The Asia-Pacific region is expected to have the highest growth rate in the direct store delivery market between 2020 and 2027.

Direct Store Delivery Consumer Trends

1. In a survey of 1,000 Americans, 60% reported that they were trying to eat healthier (source: IFIC Foundation).
2. The increasing demand for fresh and organic products is expected to drive the growth of the direct store delivery market in the coming years.
3. The COVID-19 pandemic has also accelerated the growth of the direct store delivery market as consumers increasingly opt for home delivery options.

Direct Store Delivery Industry Trends

1. The adoption of direct store delivery is highest in the food and beverage industry, but it is also becoming popular in industries such as pharmaceuticals and automotive parts.
2. The biggest challenge facing the direct store delivery industry is ensuring product quality and safety during transportation.
3. To overcome these challenges, companies are investing in technologies such as blockchain and IoT to improve supply chain visibility and traceability.

Direct Store Delivery Market Leaders

1. The largest direct store delivery companies in terms of revenue are Coca-Cola, PepsiCo, and Nestle.
2. Other major players in the direct store delivery market include Mondelez International, Danone, and Unilever.

Direct Store Delivery Supply Chain Management

1. Direct store delivery allows manufacturers and distributors to manage their supply chain more effectively by reducing lead times and inventory levels.
2. This approach also enables companies to respond more quickly to changes in consumer demand and market trends.

Direct Store Delivery Operational Efficiency

1. Direct store delivery can improve operational efficiency by reducing transportation costs and decreasing the number of touchpoints in the supply chain.
2. This approach can also help companies minimize waste and optimize their inventory levels.

Direct Store Delivery Technological Advancements

1. The increasing use of technologies such as AI and NLP is helping companies to better understand consumer behavior and preferences.
2. Other technological advancements such as RFID and GPS are improving supply chain visibility and traceability.

Direct Store Delivery Retailer Benefits

1. Retailers benefit from direct store delivery by reducing their inventory holding costs and improving their customer service levels.
2. This approach also enables retailers to offer a wider range of products to their customers without having to manage a large inventory.

Direct Store Delivery Customer Benefits

1. Customers benefit from direct store delivery by having access to a wider range of products and fresher products, as well as more convenient delivery options.
2. This approach also enables customers to receive personalized recommendations based on their purchase history and preferences.

Direct Store Delivery Productivity

1. Direct store delivery can improve productivity by reducing the amount of time and resources required to manage the supply chain.
2. This approach also enables companies to focus on their core competencies rather than having to manage logistics and transportation.

Direct Store Delivery Data Analytics

1. Direct store delivery generates a large amount of data, which can be analyzed to identify trends and patterns in consumer behavior and preferences.
2. This data can also be used to improve supply chain efficiency and optimize inventory levels.

Direct Store Delivery Regulatory Compliance

1. Direct store delivery is subject to various regulations related to food safety, transportation, and environmental sustainability.
2. To comply with these regulations, companies must invest in technologies and processes that ensure product quality and safety.

Direct Store Delivery Environmental Impact

1. Direct store delivery can have a positive impact on the environment by reducing transportation emissions and minimizing waste.
2. Companies can further reduce their environmental impact by using sustainable packaging materials and optimizing their distribution routes.

Direct Store Delivery Competitive Advantage

1. Direct store delivery can provide a competitive advantage by enabling companies to offer faster delivery times, fresher products, and more personalized service.
2. This approach can also help companies differentiate themselves from their competitors by offering a wider range of products and more convenient delivery options.

Direct Store Delivery Customer Loyalty

1. Direct store delivery can improve customer loyalty by providing a more personalized and convenient shopping experience.
2. This approach can also help companies build stronger relationships with their customers by offering customized product recommendations and promotions.

Direct Store Delivery Supplier Relationships

1. Direct store delivery can improve supplier relationships by providing more frequent and accurate demand information.
2. This approach can also help companies build trust with their suppliers by ensuring timely payments and transparent communication.

Direct Store Delivery Supply Chain Collaboration

1. Direct store delivery requires close collaboration between manufacturers, distributors, and retailers to ensure product quality and safety.
2. This approach can also help companies identify opportunities for joint cost savings and process improvements.

Direct Store Delivery Supply Chain Resilience

1. Direct store delivery can improve supply chain resilience by reducing the risk of supply chain disruptions and enabling companies to respond more quickly to changes in consumer demand.
2. This approach can also help companies mitigate the impact of natural disasters and other unforeseen events.

Supply Chain Visibility

1. Direct store delivery provides greater supply chain visibility by enabling companies to track products in real-time throughout the supply chain.
2. This approach can also help companies improve their inventory management and reduce the risk of stockouts.

Supply Chain Traceability

1. Direct store delivery enables companies to trace products back to their source, which can help to identify and address quality issues.
2. This approach can also help companies comply with regulatory requirements related to food safety and environmental sustainability.

Packaging Efficiency

1. Direct store delivery can improve packaging efficiency by reducing the amount of packaging required for each product.
2. This approach can also help companies reduce their packaging costs and minimize waste.

Product Quality

1. Direct store delivery can improve product quality by reducing the amount of time that products spend in transit and on store shelves.
2. This approach can also help companies identify and address quality issues more quickly.

Product Freshness

1. Direct store delivery can improve product freshness by reducing the amount of time that products spend in transit and in storage.
2. This approach can also help companies reduce waste by minimizing the amount of unsold products.

Product Customization

1. Direct store delivery enables companies to offer customized products and services based on customer preferences and purchase history.
2. This approach can also help companies identify new product opportunities and improve their product development processes.

Product Innovation

1. Direct store delivery can facilitate product innovation by providing companies with more frequent and accurate feedback from customers.
2. This approach can also help companies identify new market trends and consumer preferences.

Product Promotion

1. Direct store delivery can improve product promotion by enabling companies to target promotions more effectively based on customer preferences and purchase history.
2. This approach can also help companies improve their marketing ROI and reduce promotional waste.

Product Pricing

1. Direct store delivery can improve product pricing by enabling companies to offer more competitive prices based on real-time demand information.
2. This approach can also help companies optimize their pricing strategies and improve their profit margins.

Product Distribution

1. Direct store delivery enables companies to distribute their products more effectively by reducing lead times and increasing delivery frequency.
2. This approach can also help companies improve their delivery reliability and reduce their transportation costs.

Product Availability

1. Direct store delivery can improve product availability by reducing the risk of stockouts and ensuring that products are delivered to stores in a timely manner.
2. This approach can also help companies improve their customer service levels and reduce the risk of lost sales.

Customer Service

1. Direct store delivery can improve customer service by providing faster delivery times and more personalized service.
2. This approach can also help companies differentiate themselves from their competitors and build stronger customer relationships.