Dive Brief:
- 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%).
Dive Insight:
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.
