The Necessity of E-commerce Delivery Optimization

Last mile delivery is a serious challenge for retailers. In this QAD Precision Report, we look at the necessity of e-commerce delivery optimization.

Last year upended e-commerce in ways that are still reverberating. From March, e-commerce volumes grew exponentially, reaching peak-like levels. Now 18 months later, retailers are bracing for supply chain disruptions and high peak season delivery surcharges.

It is a truism to say that a successful e-commerce delivery strategy is one that prioritizes customer convenience and satisfaction. But putting this into practice is a significant challenge.

Think back to the last time you shopped online. Were you satisfied with the delivery experience? Or were you frustrated by lack of clear communications from the retailer regarding your delivery?

Clear communications that set delivery expectations should be a priority. An online shopper may be happy to wait, for example, three days for a delivery. This goodwill — and trust in the e-commerce business — evaporates if the delivery takes five, six days or longer.

Another aggravation for e-commerce shoppers is mismatched communications from retailers and carrier tracking services. An e-commerce delivery strategy should include real-time updates from carriers. These can be communicated to customers via email or text message. 

Conflicting messages from retailers and carriers about the status of packages is frustrating for customers. One report found that 42 percent of online shoppers want real-time updates on packages. That’s the same percentage of people that want free shipping. 

E-Commerce, Omnichannel and Seamless Customer Experience

E-commerce shopping and in-store purchases are not necessarily completely different activities. Many customers use online shopping platforms to research products before purchasing in-store. There are a number of reasons for this. 

We may want to experience the look and feel of a product before purchasing. Perhaps we want to check the quality of an expensive purchase, or try on clothing for size. Sometimes we need a purchase straight away and cannot wait for delivery. A seamless omnichannel experience that prioritizes customer satisfaction is key to driving sales and customer loyalty.

Clear communications are equally important here. Retailers and omnichannel sellers should make the purchasing decision easy. This means including enough information to allow the shopper to complete the buying journey whether they shop online or in-store. One survey found that 47 percent of shoppers in the US have left a store frustrated because what they wanted was not available. 

A retailer’s e-commerce platform should include information about availability, and allow customers to choose a click-and-collect option. This combines the convenience of e-commerce with the instant gratification of in-store purchases.

Getting the Last Mile Right

As customers, many of us are impatient, demanding and lacking in time. As a result, e-commerce and omnichannel retailers need to make the entire buying journey easy and convenient.

Although all retailers understand the importance of e-commerce, many do not consider the importance of the last mile. Many invest their resources in capturing business through their e-commerce stores, social media posts and advertisements. However, they fall at the final hurdle by treating the last mile as the carrier’s problem — not theirs. 

Retailers who do so are making a mistake. The customer journey encompasses everything from the initial browse to the order fulfillment and delivery of purchased goods. The shipping experience is central to the shopping experience. As a result, e-commerce and omnichannel sellers need a variety of flexible delivery flow paths to ensure customer satisfaction.

Lack of acceptable delivery options is a major reason for shopping cart abandonment. Approximately half of all e-commerce shoppers have abandoned a purchase because of poor delivery options. They may have been too expensive, too long or inconvenient. Furthermore, 39 percent of shoppers will not shop with a retailer again if they have a poor delivery experience.

As a result, e-commerce delivery optimization is crucial. There is no single delivery optimization strategy. It depends on what a retailer sells, where they ship and where they might ship in future. Capabilities could include:

• Flexible, personalized delivery options including click-and-collect, time-definite delivery, free delivery and expedited delivery

• Access to a domestic, regional or global multi carrier shipping network offering cost-effective shipping services as well as premium services

• A central portal for tracking all packages, with exception alerts for deliveries at risk of missing their delivery dates

• Real-time updates of package statuses to customers

• Ship-from-store capabilities turning retail outlets into fulfillment centers

• Easy, convenient and free returns options

Getting the last mile right takes time, planning and investment. If a retailer is to compete against online marketplaces and e-commerce behemoths, this is critical. Any retailer that sells online must have a strategy that meets their customers expectations and controls delivery costs. If they don’t, customers will take their business elsewhere.

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Further Reading

E-COMMERCE AND SUSTAINABLE LAST-MILE DELIVERY OPTIONS 

WHY RETAILERS NEED FLEXIBLE MULTI CARRIER SHIPPING SOFTWARE

3 MINUTE EXPLAINER: WHAT IS DELIVERY EXCEPTION MANAGEMENT?