Last-mile delivery could make or break retail sales this year
- About 40% of 1,500 shoppers surveyed by Convey say delivery is the most important detail in their shopping experience, the retail software provider revealed last week.
- When asked about the most important factors during the holidays, 33% of respondents said they prioritize cost, 29% desire a specific delivery date and 23% said they would accept a range of delivery dates. Yet, customers expect retailers to keep their promises, with 95% saying they expect to be notified of delays.
- Even when notified, 90% expect "action or compensation" for missed deliveries. Respondents said such compensation could come in the form of refunded shipping costs (50%), discounts (19%), expedited shipping for another item (10%) or in the future (10%).
The importance of shipping timing and accuracy continues to be a consumer priority.
The National Retail Federation is projecting losses exceeding $333 million due to shipping mishaps during the 2017 holiday season. A further $1.5 billion in future revenue could be lost as a result of consumer abandonment of sellers due to delivery issues.
The most common issues affecting deliveries (all figures are potential)
|Mishap||Shoppers affected||Direct/indirect* cost to retailers|
|Incorrect address||17.5 million||$162.2 million|
|Wrong "return to sender"||11.8 million||$102.5 million|
|Damaged package||7.8 million||$67.7 million|
|Delays||48.9 million||$1.2 billion*|
|Failed delivery||46.9 million||$368.5 million*|
Clearly, the stakes for retailers are extraordinarily high. Based on the risk associated with lost business, sellers able to secure the most reliable shipping options would be well-advised to do so. Failing that, they might not get a second chance.
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