ailer’s proprietary technology will determine the most efficient way to sort, route and deliver orders to local neighborhoods, and then Shipt drivers, as well as carriers, will deliver them to customers’ doorsteps. “For years, Target has put our stores at the center of how we serve our guests. Our new sortation center builds on that model by helping us ship online orders with greater speed and lower costs, while making room for future growth,” John Mulligan, Target’s chief operating officer, said.  “By adding Shipt to that operation, we’re now testing how we can reach guests even faster with efficient local deliveries.” While it’s not unusual for retailers to invest in new technology and techniques in their warehouses and distribution centres to help speed up the delivery of online orders, relatively few businesses have actually brought last-mile delivery in house as Target is doing.  With the exception of retailers selling fresh food or big and bulky items, such as furniture and appliances, most retailers rely on national carriers to deliver their products to customers’ doorsteps. But should they be rethinking this?  ‘Sounds like nirvana’ The answer is yes, according to Nathan Bush, director of e-commerce strategy at eSuite.  “Many retailers don’t see fulfilment as a clear differentiator when they decide what to execute in-house and what they outsource. Beyond express and standard, isn’t a delivery just a delivery? Unfortunately, not,” the former group digital manager at Super Retail Group told Inside Retail.  “If we flip it around and think of all the customer touchpoints in an e-commerce journey from discovery to purchase to fulfilment, fulfilment is the one that often gets ignored. But from a customer’s experience, it is when the customer is at their most excited – or anxious. What a moment to own!” Bush noted that courier companies have come a long way since they “accidentally inherited” e-commerce deliveries 20 years ago, and retailers can now differentiate themselves with a range of fulfilment options, from out-of-hours delivery, to advanced tracking. By taking it a step further and treating fulfilment as a brand and marketing investment, they can make an even bigger impact on the customer experience.  “Delivering a branded experience with knowledgeable team members on your customer’s doorstep when they are hugely excited to see you sounds like nirvana,” Bush said. Tapping into economies of scale The biggest factor holding retailers back from doing their own deliveries is cost.  “Many retailers see delivery as a commodity and the lowest cost option usually comes from outsourcing,” Jonathan Reeve, the author of Retail’s Last Mile and GM APAC at software company Eagle Eye, told Inside Retail.  But this could change with the rise of online shopping.  “As retailers’ e-commerce volumes increase the economics of in-house delivery will become more attractive – especially when your customers live near to where the product is picked and the deliveries can travel direct to the home,” Reeve said. He pointed to Amazon as a large e-commerce company that has used in-house deliveries for several years.  “Its experience shows how a large e-commerce business can benefit from several delivery models to suit different situations,” he said. And Bush noted there’s a middle ground, with third-party providers such as Drive Yello enabling retailers to test out the benefits of branded deliveries without having to hire their own team of drivers.  “It is important to note that retailers don’t have to go down this path alone or go all-in,” he said.  With the bar for providing an amazing online customer experience only getting higher, Bush believes retailers shouldn’t reject the idea of doing their own deliveries out of hand. “If Domino’s can do it with $5 pizza’s, surely it’s an option for e-commerce retailers?”