Now is an optimal time to introduce delivery services to your business, as the market for delivery is experiencing significant growth. A wide variety of businesses beyond restaurants are adding delivery to their operations; DoorDash partners with grocery stores, liquor stores, convenience stores, drugstores, pet stores, and florists, and processed over 2 billion consumer orders globally in 2023. The online food delivery market is expected to reach $1.22 trillion this year — and this growth encompasses both meal delivery, which is projected to see 2.5 billion users by 2028, and grocery delivery, which is tracking towards a 20.3% revenue increase by 2025.
Third-party delivery services are an all-purpose solution between your business and online customers, handling ordering, payment processing, transportation and delivery logistics, and communications.
The benefits of partnering with a third-party delivery service
Third-party delivery services can enhance business capabilities and brand visibility. Here's how partnering with DoorDash can benefit your business:
1. Reach new customers
When you become a DoorDash partner, customers in your neighborhood will see your products when using the DoorDash app. Partnering with DoorDash helps businesses expand to new audiences — in a survey of DoorDash partners, 87% of merchants say that DoorDash helps them reach new customers.
2. Grow sales
Delivery and pickup can be a powerful revenue stream, complementing in-person sales. In 2023, merchants earned nearly $50 billion globally through sales on DoorDash. 91% of surveyed merchants say their new customer growth would have been lower without DoorDash.
DoorDash is incremental. The additional revenue that we receive from DoorDash is very helpful. Not only does it provide more sales, but the incremental margins on those sales are a lot higher because we've already covered our fixed costs with our regular business.
3. Improve profit margin
Third-party delivery is particularly valuable in increasing incremental sales, and thus profitability. A restaurant’s online delivery orders are in addition to dine-in orders, and do not require additional overhead costs since they can be fulfilled by your existing staff and operations. Using third-party delivery also means you don't have to hire and train a roster of delivery drivers. 70% of merchants surveyed say that DoorDash has helped increase their profit margins.
"We've found third-party delivery to be very profitable. The increase in top-line sales really helps us out with economies of scale across all of our locations."
4. Increase brand awareness
DoorDash's marketplace reaches 94% of the American population, 80% of the Australian population, and over 75% of the Canadian population (based on adult populations for zip codes where a delivery was made). 74% of customers have used DoorDash to order from restaurants they otherwise would never have tried, with 79% making repeat orders.
"DoorDash is very unique in that it has its own marketing and ability to reach customers that quite frankly we wouldn't have been able to reach. So DoorDash has given us the ability to expand and have customers really experience us where we wouldn't have been able to before."
5. Focus on your products, not logistics
A third-party delivery platform like DoorDash includes built-in ordering and payment technology, so businesses don't have to worry about delivery logistics. Research reveals 73% of businesses that rely on third-party logistics found the partners enabled a more positive customer experience and led to new business innovation, while 86% said that they provided greater cost efficiency in general.
6. Improve efficiency
Partnering with a third-party delivery service streamlines online ordering and delivery processes, improving workflow efficiency for your team. The DoorDash app notifies businesses of orders and connects with Dashers to facilitate deliveries to customers, integrating seamlessly with your existing workflows.
"DoorDash is like having a whole team on-demand. Between customer support, the Merchant Portal, drivers, and other tools, it's like adding ten people to your staff for just the price of commission."
7. Benefits for non-restaurant merchants
Partnering with DoorDash is not just beneficial for restaurants, but also for a variety of other businesses. Here's how different sectors can benefit:
Grocery stores: Enhance customer convenience with scheduled deliveries and attract a broader customer base.
Liquor stores: Increase sales by offering customers the convenience of alcohol delivery, especially during special occasions.
Florists: Expand reach by offering delivery services for floral arrangements ahead of events and holidays.
Pet stores: Improve customer satisfaction by providing delivery for pet supplies, which can lead to higher repeat orders.
Each of these business types can leverage DoorDash's platform to streamline operations, reach new customers, and boost sales effectively.
Choosing the right third-party delivery partner for your business
When selecting a third-party delivery service, consider factors such as market presence, customer familiarity, and cost-effectiveness.
Market presence
Evaluate the delivery platform's presence in your region, and consider the platform's familiarity and popularity among customers. A well-known service like DoorDash can attract a larger customer base, enhancing your business's visibility and sales.
Cost of fees and commissions
Analyze the cost structures of potential delivery partners. Research shows that 86% of businesses who use third-party delivery services report greater cost-efficiency, highlighting the financial benefits of such partnerships. DoorDash offers transparent and competitive pricing across a variety of solutions, making it a cost-effective option for many businesses.
Access to customer analytics
Some platforms restrict access to customer data and analytics. DoorDash provides comprehensive tools to view detailed analytics on orders, sales, and customer trends, allowing you to develop new strategies to build customer relationships and loyalty. DoorDash partners can view sales dashboards across locations and create performance reports by week, month, or quarter.
Flexibility in delivery operations
No two businesses are the same, and their delivery requirements can vary. DoorDash offers flexible third-party delivery solutions to suit your needs.
Feature your business on a popular third-party delivery platform: A product like DoorDash Marketplace can connect your business with customers using the DoorDash app in your area, opening up new prospects.
Offer delivery through your own channels: DoorDash Storefront allows customers to place delivery orders directly on your website or social channels, while DoorDash infrastructure powers the delivery.
Access drivers for order fulfillment: DoorDash Drive provides access to a network of Dashers to deliver orders, saving you the costs of hiring, managing, and insuring your own fleet of drivers.
"On top of just having access to drivers and not having to manage it yourself, third-party delivery platforms can bring you business."
Everything to know about partnering with DoorDash
Becoming a DoorDash partner has helped thousands of businesses thrive — in fact, 19% of merchants surveyed have said that their business wouldn't exist today if not for DoorDash. And setting up the partnership is easier than you think. Here are the four steps to start leveraging third-party delivery to maximize off-premise revenue.
Step 1: Choose a partnership plan
Becoming a DoorDash partner takes just a few minutes. First, sign up for DoorDash by creating an account to relay basic information about your business, including your address, business type, and operating hours.
Step 2: Choose the order protocol
Once you fill in your basic information, choose your order protocol to set up how you'd like to receive DoorDash orders. This will likely have the biggest impact on your day-to-day delivery operations, so be sure to pick the method that works best for your business. You can integrate DoorDash with your point of sale system or aggregator, or opt to use a DoorDash tablet to manage orders.
Step 3: Share your menu and store hours
After confirming your contact information and setting a password for the DoorDash Merchant Portal, you’ll receive a link to create your menu of offerings. You can upload your existing menu photos, or schedule a free photoshoot through DoorDash. Think about how to optimize your menu for delivery — focus on higher-margin items, best-sellers, and items that travel well to ensure an efficient and profitable off-premise operation.
Step 4: Add a bank account and submit
Once you complete those steps and your account is activated, the next step is to enroll in direct deposit by adding your bank account information. Finally, sign the contract, download a copy, and submit! You're now a DoorDash partner. You'll be able to confirm details and go live with your listing whenever you're ready. Then, customers can browse your offerings, and you can watch your sales grow.
"It increases our top-line revenue. It brings in new and repeat customers who don't want to travel to our locations. In some stores DoorDash is 35-40% of our total revenue for that store. That means we have 40% more sales in some stores because of DoorDash."
Partnering with DoorDash unlocks unique benefits for merchants
Once your business is officially a DoorDash partner, you get access to a number of helpful tools and resources to grow your sales — including the DoorDash Merchant Portal, the Business Manager App, innovative marketing solutions, and world-class customer support.
Easily manage third-party delivery with the DoorDash Merchant Portal
After activating your DoorDash account, you'll be able to easily manage your third-party delivery with the Merchant Portal. This online tool helps DoorDash partners analyze business performance and track payments, as well as update essential business details like your bank account, tax ID, and operating hours. You can also make real-time adjustments to your menu, including adding or removing items, updating prices, and replacing photos and descriptions.
Track your performance with DoorDash sales analytics
With the sales analytics data found in the Merchant Portal, you can track your business within specific timeframes and get actionable insights on key data points such as total sales, average order size, new and repeat customers, and most popular items. This helps to identify trends and track business performance in aggregate or across individual locations. The DoorDash Merchant Portal also offers actionable operational insights — such as identifying patterns of missing or incorrect items on orders — to help you optimize the delivery process and improve delivery customer satisfaction.
Stay informed with the DoorDash Business Manager App
Running a business is hard work, but the DoorDash Business Manager App makes it easier to manage things on the go. It allows you to track orders in progress, resolve issues, access support, and monitor performance — right from your mobile device. You can also use it to update your hours at the last minute, manage storefronts across various locations, or pause orders during open store hours.
Drive sales with DoorDash marketing tools
DoorDash partners can also leverage in-app ads and promotions to increase visibility and reach new customers. With DoorDash marketing tools, your business can dive into sales data to understand which promotions drive the most ROI for your business, so you can make every dollar count.
Examples of marketing tools include promotions such as "First Order, $0 Delivery Fee" and "Order Again and Save" that can help you build and maintain a loyal customer base. For example, DoorDash partner MISHKA Luxury Dog Treats uses DoorDash promotions to attract new customers, which has helped it grow 7X since the beginning of the pandemic. On average, businesses that use promotions see up to a 20% increase in DoorDash sales.
Get reliable customer support
DoorDash offers 24/7 Merchant Support, with dedicated account managers for larger partners to provide customized advice and consultations. You'll also have access to a library of online resources, and can always reach our support team by chat, email, or phone.
"The big advantage of DoorDash is they're reliable, they're fast, there's always a driver available, and the drivers are very considerate of my team which is extremely important. And if we have an issue, we have access to someone at DoorDash who can take care of the problem for us."
Factor third-party delivery into your P&L
Be sure to track how third-party delivery impacts your profit and loss statement (P&L). Based on this information, you'll be able to create an actionable plan that will help you achieve financial stability and grow your business.
Keep the Dasher experience in mind
A strong relationship between businesses and Dashers is a big factor in creating a positive customer experience. If you're committed to a five-star delivery process, it's important to set up a system that works well for businesses, Dashers, and customers alike. Make the Dasher experience as smooth as possible by designating pickup spots, setting realistic prep times, having staff members double-check orders to avoid mistakes, and creating a system for Dasher identification. This ensures that customers receive their orders on time and free of errors, and it will also make your staff's jobs easier.
With DoorDash, all types of business can drive sales and growth
There's a lot to be excited about when it comes to third-party delivery services. The best platforms lead the competition in terms of market penetration, geographic presence, and customer familiarity — helping to power significant business growth and improve sales, profit margins, brand awareness, and operational efficiencies.
"Third-party delivery is here to stay. The comfort and convenience of eating at home isn't going anywhere."
DoorDash leads the pack as a third-party delivery platform, from the simplicity of onboarding to its suite of digital solutions to its exceptional customer support.
Explore DoorDash's product offerings to learn how our solutions can help grow your business today. Sign up now to reach new customers and boost your revenue with third-party delivery.
