fashion

Unboxed: How ecommerce is changing the delivery landscape


London – The continually evolving retail landscape is changing how shopping
behaviour is affecting both in-store and online experiences and more
importantly, changing customer expectations.

As online shopping is now integral to our daily lives, leading retailers,
brands and marketplaces can no longer afford to be complacent about the
role delivery management plays in their digital store strategies.

According to MetaPack’s White Paper: Unboxing Europe’s Future Delivery
Landscape, 50 percent of shoppers surveyed for the MetaPack 2017 State of
eCommerce Delivery Consumer Research Report indicated that they had
abandoned online shopping carts because the delivery choices were
unsatisfactory, or did not meet their needs.

The message, thus, when it comes to retaining customers, building loyalty
and reaching new audiences, is the quality of delivery has the power to
make or break the online shopping experience.

The study by MetaPack evaluates the key trends set to influence delivery
models and shape the ecommerce value chains of today and beyond. Here are
some of the findings:

Brands are going direct to consumer

The number of manufacturers selling directly to consumers grew 71
percent in 2016. Already under attack by dominant conglomerates like
Amazon, retailers must now also worry about their wholesalers selling
direct via the Internet.

Consumer demands are evolving

MetaPack’s 2017 consumer research reveals 54 percent of shoppers now want a
one-hour delivery in metropolitan areas and 15 percent want the freedom
to reschedule deliveries. Furthermore, a growing number of consumers are
now prioritising convenience over cost with 35 percent of online shoppers
saying they are happy to pay to get items delivered when and where they
want.

57 percent of shoppers say they would be likely/very likely to use a
try-before-you-buy service. Mastering fulfilment and returns agility and
achieving economies of scale will be critical for providers looking
to capitalise on this burgeoning opportunity.

A new era of socially aware shoppers

Over a quarter (27 percent) of shoppers say they care a great deal about
the environmental toll of their online deliveries, with a further 47
percent saying they were conscious these contributed to increased tra
c congestion and carbon emissions. With 71 percent of consumers expressing
a preference for having all their online orders delivered in one go, a
consolidated delivery approach by retailers and brands is likely to be met
with overwhelming approval by conscientious consumers.

Polarisation of retail is happening

Consumer-centric relationships will require a like-minded supply chain and
operating model. Some shoppers will pay more for special products,
faster delivery, sustainable attributes, or higher product quality. Others
will trade down to lower cost products with none of those features.
Retailers will need to understand where they sit on that continuum.

Omni-channel to omni-experience

Forward thinking retailers will concentrate their e orts on creating a
path to shop that integrates in-store technology, mobile, cloud, analytics
and social media to boost customer engagement.

Retailers and brands must be able to predict and respond fast to the next
trend – hyperlocal offerings, the conscientious consumer, social shopping
and omnichannel personalisation.

Delivery price, quality and convenience will continue to drive consumer
shopping behaviours – regardless of which channel they use to make a
purchase. But personalisation
is rising quickly up the agenda; 15 percent expect providers to re-schedule
deliveries and 29 percent expect delivery to wherever they are.

Everything comes with a price

As ecommerce retail sees growth, so too does the increase in couriers,
delivery companies and carbon footprints. Metropolitan leaders like
London’s Mayor Sadiq Khan are looking to reduce freight trafficc in a bid
to lower congestion and carbon emissions in cities – introducing
‘micro-distribution’ centres and demanding shipment consolidation. It will
be interesting to see the figures pertaining to the impact of deliveries on
the environment and our cities.

Photo credit: Amazon parcel, Amazon website. Article source: MetaPack
“Europe’s Future Delivery Landscape” white paper



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