“Consignees are becoming more savvy and demanding with regards to e-commerce delivery. They want to decide what, where, how, by whom or when the delivery will take place. They also want to be able to track progress and change their mind as to when and where the item will be delivered. This means that the last mile should be the first priority for smart e-commerce players.” - Marek Różycki, Last Mile Experts
It’s not just us saying it either - leading e-commerce retailers take the same view:
“If you don't service existing customers properly, you'll have to deal with a leaky bucket – and therefore spend more time and money on acquiring new customers.” - Adam Lindsay, founder of eco-friendly cleaning products company Koh
Here’s what Kogan’s Director of Customer Care has to say on the subject:
“Company growth relies on us delighting our active customer base time and time again.” - Daniel Beahan, Kogan
So it was a surprise to read that new research from IMRG shows a notable decline in shopper satisfaction with online delivery.
The findings come from the IMRG Consumer Delivery Review 2018, an annual survey asking 2,000 UK shoppers 50 questions to understand their perceptions of online delivery.
Between 2011 and 2017, overall satisfaction with online delivery was steady, but this year’s survey revealed that it fell from 85% to 78% between 2017 and 2018.
The number of respondents saying delivery concerns sometimes prevent them from shopping online also rose from 41% to 48% between 2017 and 2018.
So what’s driving this? There are growing delivery options available to consumers, and a heightened awareness of the role delivery plays in abandonment of shopping carts.
IMRG suggests it may be that shoppers’ expectations have risen as the range and quality of deliver has improved.
When asked why delivery concerns prevent them from shopping online, the most common responses were:
Risk of failed delivery – 54%
Additional cost of home delivery – 39%
Delivery too slow – 37%
Timeslots too vague – 32%
The risk that goods may not arrive on time – 32%
“There is a major misconception in the retail space that consumers want fast-and-free delivery, when in reality they want convenience and transparency,” said Neil Cotty, CEO, Global Freight Solutions.
The delivery situation for cross-border delivery into the UK is likely to deteriorate as a result of Brexit. The potential for tariffs, customs delays, and other service interruptions will put more pressure on retailers and delivery companies to meet pre-Brexit standards and customer expectations.
Another factor that may be negatively influencing shopper views of online delivery is the perceived environmental impact.
“While online was once regarded as a cleaner alternative to shopping on the high street – as it consolidated numerous orders into single delivery vans, potentially saving multiple single-purpose high street visits from individual shoppers – the perceived advantage hit a 10-year low in 2018. This is likely being influenced by the focus put on this area by media and government following the Blue Planet II series, with excess packaging being a prime target for negative headlines,” said Andy Mulcahy, Strategy and Insight Director, IMRG.
Have you subscribed to the Postal Hub Podcast?
The podcast is available on iTunes, Spotify, and Google Podcast. Click here for details on how to subscribe.
Get the Postal Hub e-newsletter free each week: