Effects of e-commerce on the delivery operations

It is becoming increasingly difficult for manufacturers and retailers to stand out from the foray with good products at the perfect price points. Today’s discerning customers have more choice than ever before. That is a given. Apart from brand recognition, product and price, the real battle is currently being waged on the customer experience front. Nowadays, it seems like everyone in retail and marketing are talking about the customer experience—how to attract and delight consumers through each stage of the buyers’ journey, whether offline or online.

Yet, while experts say that a 360-degree customer experience strategy is the key to increasing sales and remaining viable, many companies do not actually come full circle. The reason?

The delivery experience.

The delivery experience is the missing link to achieving a truly complete and successful e-commerce strategy. And unfortunately, delivery seems to be the last bastion of outdated tactics and lackluster performance. In a recent report by BigCommerce: “there is very little merchant recognition on delivery’s impacts on sales.”

The numbers don’t lie. BigCommerce’s study show that 77% of respondents have abandoned a purchase due to unsatisfactory shipping options, high costs or unacceptable lead times. Another compelling statistic? The National Retail Federation found that more 75% of online shoppers expect delivery to be free.

Many consumers now consider shipping costs even before getting to the checkout page, with 65 percent saying they look up free-shipping thresholds before adding items to their online shopping carts. Consumers also want their products fast, with 39 percent expecting two-day shipping to be free, and 29 percent have backed out of a purchase because two-day shipping wasn’t free. – National Retail Federation

The aforementioned statistics do not even include returns—a major headache for manufacturers and retailers. While consumers expect free returns as well, the sheer logistical nightmare and costs associated with reverse logistics are a major pain point with manufacturers and retailers. BigCommerce points to another 58% of consumers who have actually stopped shopping with specific manufacturers and retailers as a result of a negative delivery experience, with incorrect addresses, damaged/shorted/lost orders, wrong products, delays and perceived unprofessional behaviour on the part of carriers being the usual suspects. These bad delivery experiences can wreak havoc on a retailer’s customer loyalty, top and bottom lines, and long-term reputation.