There’s No Such Thing as Free Delivery
Barn2Door is committed to helping Farmers increase sales, access more customers and save time & money. One of the hottest topics of discussion with Farmers is direct delivery.
A Delivery service has the potential to transform your Farm business model. Farmers offering direct delivery average 2x+ more in monthly revenue versus Farmers that don’t offer delivery. Buyers ordering anything, anytime, anywhere, have an expectation of direct delivery. When Farmers consider delivering their products or want to make their existing programs more profitable, one piece of advice we always give is to charge a delivery fee.
Why? Because there is no such thing as free delivery for Food.
As a leading player in offering Prime members “free delivery,” Amazon recently announced that no one will receive free delivery on orders from Whole Foods Market. So, if a trillion-dollar company charges a delivery fee ($9.95), then your Farm should too. Buyers are willing to pay for convenience.
Read: Delivery 101: Make it Profitable for Your Farm (10mins)
At Barn2Door, we provide Farmers with data-backed insights to make better, more informed decisions. Earlier this year, we surveyed 100’s of Farmers about their delivery programs to help inform others about the tactics implemented by the top Farmers in the country. Here are the main takeaways from the survey:
+60% of the participants charge more than $5 per delivery.
The average order value of products delivered is $50+.
+40% of Farmers average 1-2 Delivery days per week.
On average, Farmers save up to 2 hours/day with the Barn2Door + Routific integration.
Read: Delivery Made Simple. Announcing the Barn2Door + Routific Integration
Here are some delivery best practices we see the most successful Farms implement:
Delivery Fees Offset Costs. On average, Farms charge $5 - $10 per delivery (and up to $15 in metropolitan areas). Account for your time and labor and turn a profit delivering products that have already sold.
Avoid Purchase Minimums. Your delivery fee should offset the cost of a delivery service. Setting purchase minimums will deter some customers from making a purchase. Instead, narrow your delivery zones and zip codes so you’re not delivering too much or too far.
Use Bundle Boxes to Drive Orders. 90% of your buyers will opt-in to Farmer Recommended Bundle Boxes. When paired with delivery, you’ll move more products and have better predictability when packing the truck.
Read: 3 Farm Success Stories with Delivery
Charging a delivery fee is essential to covering operational costs and ensuring the venture is worth your time. The most successful Farms reach 20+ customers within 2 hours, but that doesn’t happen overnight! The key to a successful delivery service is to start small, narrow your delivery zones and days, then scale the program when your current system is profitable.
Barn2Door is the all-in-one solution to grow and manage your Farm business. If you’re curious to learn how successful Farms run on Barn2Door, watch this 5-minute video.