As last mile logistics become a determinant factor in consumers’ decision making, retailers need to adjust accordingly to remain relevant in the terms of logistics standards and expectations. Delivery speed in and of itself, nonetheless, is not the answer to everything. Consumers take into account a range of other factors such as professionalism and integrity of provided services. All things considered, a lot is contingent on the retailer’s perspective, commitment to invest in the future and the ability to coordinate partnerships with parties that not only share the same vision but can turn each other’s disadvantages into strength.
Dropoff’s 3rd annual study revealed that although consumers want to get their purchases faster they wouldn’t trade delivery quality for speed. In exchange for it, though, there are 5 things that retailers need to know before revamping a legacy system. Let’s take a peep at what is really needed and how Same Day Delivery can benefit them.
- Same-Day Delivery – The Hot Mode
The number of buyers who see themselves benefiting from Same-Day Delivery doubled compared to the same period in 2017, one-third of which expressed disappointment with retailers that don’t offer the option. Delivery speed thus has become a key success factor for online shopping. 53% of consumers opted not to purchase from providers with slower services. Such incapacity has become a big opportunity cost for retailers today. Thus, many retailers have made the option available to customers over the past year. Boston Retail Partners’ 2017 Digital Commerce Survey revealed, though, that although over 51% of retailers offered the service in 2017, the model still requires some development in the areas of management and operations in order to meet expectations.
2. Logistics Expectations
The shortcoming is disappointing because more than 99% of American consumers say fast shipping is a major factor for online shopping while 43% expect shipping services to be faster compared to last year. Yet, speed is not the only thing that matters. More than 75% expressed that quality handling is another important domain. Last but not least, delivery status tracking, preferably real-time, is an indispensable feature.
Graph depicting consumer expectations for same day delivery compared to present time conditions by product type.
3. Poor Delivery Affects Repeat Purchases
Graph depicting a range of issues related to deliver, comparing 2018 data to 2017.
4. Peer-to-Peer Delivery Services Vs. Lingering Problems With Traditional Logistics
While consumers expect better transport, adapting carriers, to the contrary, are not handling problems that occur very well. As a result, 14% of consumers are opting for peer-to-peer and crowdsourced delivery services (*Peer-to-Peer and crowdsourced are described in another article). Major shipping services such as FedEx, UPS and USPS have also received lower consumer satisfaction and confidence ratings compared to that of the same period in 2017, the main reason being poor delivery quality.
5. Quality Service Brings Repeat Purchases
47% of consumers will pay extra in exchange for Same Day or Next Day Delivery. Over 65% of online shoppers on Amazon.com want Same-Day Delivery and will go with retailers that provide it. That is, they will switch to other deals the minute they find out the one they are browsing doesn’t have it.
Retailers need to decide if they are going to commit additional resources in order to have Same Day Delivery in their offering supply, or not. 74% of consumers that experience expedite shipping say they will repeat their purchase with the same retailer again. In addition, the option encourages one out of two Americans to shop online more often. All of this yields a great return on investment for retailers that add a single day option to their repertoire.
Delivery Solution for Retailers:
Although last mile delivery is a hassle for most retailers as it requires significant company resources to make happen. Nevertheless, it is a key success factor that affects the store the consumer chooses to buy from. Moreover, on top of professional service, consumers also expect to be able to track the delivery status of their order. It is thus necessary for retailer to consider a partnership with a potential carrier who values the same customer service.
The application technology to Same-Day Delivery Solution also help improve consumer satisfaction.
Compiled by BLOG.SCGLogistics
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