Over the last few years, we have seen e-commerce boom, we’ve seen the rise of buy-now pay later and we’ve seen omnichannel retailing become incredibly important for once pure play bricks and mortar businesses.
Online shopping behaviour has significantly changed over the years as the digital presence of brands has improved and the abundance of choice consumers have is exponential. It’s no longer good enough to be just the cheapest option or have free shipping, people expect more. It’s now an expectation to offer choice, flexibility, great service, awesome experiences, authenticity, sustainability initiatives AND reasonable prices.
So what are the logistics trends and what’s a retailer to-do in this customer-first world?
- Choice and flexibility is the way to a shoppers heart.
In a recent survey we ran, we asked 1000 people what makes their shopping hearts sing and they told us! It’s as easy as choice and flexibility. It’s about picking up or dropping off their parcels in their time, not restricted by business hours or locations far away. People want control of their time, so it’s about time we gave it to them…
50% of people said they would buy more online if they had more options to pick up their online orders.
It’s not just us that have seen this, it’s similar across other parts of the world as well. Research conducted by OC&C Strategy Consultants out of the UK saw Click & Collect services doubling by 2025. Commenting on the findings, Anita Balchandani, Partner and Head of Retail at OC&C Strategy Consultants, said: “When six in ten shoppers abandoning baskets online are doing so because of issues relating to the last mile, it’s clear that investing only in the front end of e-commerce is no longer sufficient”.
So how do we improve choice and flexibility? Well, by offering them an opportunity to pick up or drop off their parcels using Parcelpoint services. Over 1400+ convenience stores, gas stations, pharmacies all open on weekends and late nights!
2. High cost of delivery or returns turns a shopper off.
Our research showed that the biggest factor in people across all age groups and genders, NOT making their purchase is surprise surprise, the cost of shipping. It showed that it doesn’t have to be free, but people do expect it to be low-cost and as customers ourselves, we agree.
This is also supported globally, a recent survey of consumers by Jupiter Media Matrix Inc. reports that 63 percent of customers cite excessive shipping costs as the reason they cancelled a purchase.
So it’s time we found ways to reduce our shipping costs, factor it into pricing, consider it part of the overall customer experience, offer choice and options to cater to all different customers shopping needs.
3.The trend of people NOT being able to receive their online deliveries at work is increasing, rapidly. The trend of people NOT being able to receive their online deliveries at work is increasing, rapidly.
As the increase in online shopping continues, many workplaces are no-longer allowing workers to receive their parcels at work. This trend has been steadily growing over the years and we’ve seen it go from 60% a few years back to 70% of workplaces not allowing deliveries.
This does, of course, make sense for many offices or workplaces but blocks the shopper from getting what they need, when they need it.
4.People really dislike getting a ‘sorry we missed you’ calling card but still, 80% get their deliveries sent to the home!
Due to not being able to receive parcels at work, many people opt to have their parcels still delivered to their home, even though that wouldn’t be their first choice. They know they won’t be home and will, therefore, get a ‘sorry we missed you card’ or their parcel will be left on their doorstep unsafe from theft or weather damage.
People that dislike receiving the ‘sorry we missed you cards’ also really dislike standing in long queues, during business hours just to pick up their parcel, even though the idea of online shopping is about ultimate convenience. You can see the conundrum!
5. Returning online purchases is on the rise and retailers need a solution.
As with the growth of online shopping, returns too will grow and this trend can be seen globally. Retailers need to look to manage their returns simply and also include returns into their overall customer experience strategy. It’s an expectation from customers that if the item they purchased isn’t right for them, they can easily and quickly get it out of their homes and back to the retailer with a refund.
Again, it’s not only us that are seeing this trend, UK Returns company ReBOUND, also found that returns are going up; 40% of shoppers under the age of 35 said they return more items
then they did two years ago, and a third say they expect to return more than 6 items this year.
So, it’s fair to say that logistics is a huge part of the retail and eCommerce strategy from click and collect to speed, choice, cost, flexibility, returns the shopper wants it all tied up in a nice bow of convenience for them.
So how will you change or add the best solutions for your customers?
If you want to learn more about how to help a browser become a shopper, you can download our research paper here.
By Natasha Ritz
Our vision is a world where people are more connected with each other, and their local communities.
Where we work together, as neighbours, to help each other.
And so we created PARCELPOINT.
A network of local delivery, pickup and return locations – convenience stores, pharmacies, service stations – all open late and on weekends – all around Australia, where you can have a parcel delivered, and pick up or drop off whenever you like.
No stress. No missed deliveries. No cards in the mail.
Simple. Personal. Connection.
About Natasha Ritz
Natasha is a passionate story-teller and purpose-led marketer who has worked in retail, e-commerce for 14 years.
Most recently she finished up a 4-year stint as the Brand Lead for LUSH Cosmetics Australasia, leading the brand communications team to deliver regional campaigns from the globally viral Naked campaign to supporting marriage equality, the #bringthemhere campaigns and many more.
Natasha’s more recent role steps her into the solution provider side of retail as the Head of Marketing & Communications for tech and logistics startup, Parcelpoint where she is kicking off their marketing efforts. She has started by working on a complete rebrand for the business, taking it a new level and unique purpose-led space for logistics.