19 Dec
Third-party delivery apps promise convenience and access to a large customer base, but are they really cost-effective for your business? Many businesses overlook the hidden costs, from high commissions to loss of customer loyalty. In this blog, we’ll uncover the hidden costs of using third-party delivery apps and why a dedicated delivery system can be a smarter choice.
1. High Commission Fees That Eat Your Profits
Third-party delivery apps charge businesses commission fees ranging from 15% to 30% per order. While it may seem like you’re gaining more customers, these fees quickly erode your profit margins, especially for small or local businesses.
Example: A $20 order with a 30% commission leaves you with just $14—excluding other operational costs.
Impact: Your business ends up working harder for less profit, making it unsustainable long-term.
2. Limited Control Over Customer Experience
When you rely on third-party delivery apps, you lose control over:
Delivery Quality: If a driver is late or mishandles the order, your business takes the blame.
Customer Communication: You can’t directly interact with your customers to resolve issues in real time.
A poor delivery experience impacts customer satisfaction and reflects poorly on your brand, even though the app is responsible for delivery.
3. Reduced Brand Loyalty and Customer Retention
Using third-party platforms means customers associate their experience with the app, not your brand. You miss opportunities to:
- Build direct relationships with customers
- Create loyalty programs and incentives
- Encourage repeat purchases
Customers often choose convenience over brand, meaning they could switch to a competitor easily on the same platform.
4. Hidden Operational and Marketing Costs
Beyond commission fees, third-party delivery apps often have other costs:
- Marketing Fees: To appear at the top of search results, businesses must pay for premium placements.
- Discount Costs: Apps may force you to provide discounts, which cut into your profits.
These hidden expenses add up, creating an unsustainable pricing model.
5. Data Ownership: Losing Valuable Insights
Third-party platforms keep customer data, including purchasing habits, preferences, and contact information. This lack of data ownership means:
- You can’t use insights to improve your business operations
- You miss opportunities for personalized marketing
- Your long-term growth depends on an external platform
Owning your data allows you to make informed decisions and build a loyal customer base.
6. Alternatives: Why Owning Your Delivery System Makes Sense
Instead of relying on third-party apps, consider launching your own delivery system. Here’s why it’s a better option:
- Higher Profit Margins: Avoid paying steep commission fees.
- Better Customer Experience: You control the delivery process and communication.
- Brand Loyalty: Build lasting relationships with your customers.
- Data Ownership: Access valuable insights to drive growth.
Tools like Zeew can help businesses set up customized delivery solutions without the high costs of third-party apps.
Conclusion
While third-party delivery apps provide convenience, the hidden costs can hinder your business’s profitability, customer relationships, and growth. By investing in your own delivery system, you take back control, reduce costs, and build a stronger brand.
Ready to explore a smarter delivery solution? Discover how Zeew can help you launch a customized, cost-effective delivery system today.
