Dive Brief:
- A recent study by OSM Worldwide found consumers have increasingly high shipping demands and will spurn retailers if those demands are not met.
- The parcel delivery provider found more than 36% of consumers have a carrier preference when given the choice at checkout, and 31% would choose not to shop with a retailer because of its choice of carrier.
- Most consumers are likely to file complaints to customer service when packages arrive one to three days late, packages are damaged or if they are frequent online shoppers, according to the report.
Dive Insight:
In the years since ecommerce has grown in popularity, customer shipping demands have grown exponentially, resulting in real challenges for retailers who have yet to perfect their delivery system.
Various studies support a basic theme: customers have developed expectations about a certain quality and timeline for last-mile delivery. Even the carrier matters, now.
The cost in lagging behind or not providing transparency and rapid shipping capabilities can hurt both the retailers' reputation and its chances of earning new business. Therefore, retailers require partnerships with the most effective 3PL or logistics team available, in order to retain market share.
While price remains of utmost importance, and retailers should compare their shipping policies with those of its competitors, studies also show consumers are willing to pay more to meet their expectations. The addition of constant shipping notifications, the assurance of timely arrival and safe handling are all of utmost importance to the consumer, and must also be considered while choosing a carrier.
