March 26, 2015
MM&D Online Staff
HAMILTON, New Jersey—Research conducted late last year shows almost 70 percent of shoppers are much less or less likely to shop with a retailer online or by phone for future purchases if an item they purchase online or by phone is not delivered within two days of the date promised.
Five hundred consumers were surveyed on their expectations for delivery of items that they purchase online or by phone during the holiday shopping season and beyond. Highlights include:
- 75 percent of respondents intend to have more holiday purchases delivered directly to them this holiday season than last holiday season;
- 86 percent of respondents noted that their expectations for correct and on-time delivery of items that they purchase online or by phone are higher during the holiday shopping season;
- 16 percent of respondents will abandon shopping with a retailer altogether if they receive an incorrect delivery just one time;
- 14 percent of respondents will abandon shopping with a retailer altogether if they receive a late delivery just one time.
Respondents answered how quickly they expect a retailer to deliver an item that they purchase online or by phone assuming the retailer is using standard shipping:
- 4 percent said 1-2 days
- 42 percent said 3-4 days
- 44 percent said 5-6 days
- 10 percent said 7 or more days
Also, 69 percent of survey participants answered that they are less likely to shop with a retailer online or by phone for future purchases if an item they purchase from that retailer online or by phone is not delivered within two days of the date promised.
Late deliveries impact not only future online and phone purchases, but future in-store purchases as well. Respondents were asked how many times they would need to receive an item that they purchased online or by phone later than the promised delivery date before abandoning shopping with that retailer altogether:
- 14 percent said 1 time
- 54 percent said 2-3 times
- 19 percent said 4-5 times
In addition to having high expectations for on-time deliveries, respondents are also unforgiving for incorrect deliveries. Respondents were asked how many times they would need to receive an incorrect item that they purchased online or by phone before abandoning shopping with that retailer altogether:
- 16 percent said 1 time
- 52 percent said 2-3 times
- 18 percent said 4-5 times
Further, 54 percent of respondents noted that up to 10 percent of the items that they have purchased online or by phone have arrived later than the delivery date, while 54 percent responded that up to 10percent of their items have been incorrect due to retailer error (for example, the retailer shipped the incorrect size, color, product, etc).
“As desktop, tablet, and mobile shopping continue to rise, so do consumer expectations for speedy, accurate delivery,” said Keith Phillips, President and CEO, Voxware, who commissioned the research. “Retailers cannot afford to deliver products later than their promised delivery date, or send incorrect items altogether –not even once. These results prove that any inaccuracies or slight delays customers experience will result in a loss of brand loyalty across all of a retailer’s channels and therefore severely impact bottom lines. That’s why it’s essential for retailers to modernize their warehouses with technology that enables them to successfully address new omni-channel demands. Most inefficiencies and errors occurring in the supply chain happen at the moment of order selection in the warehouse. By optimizing the supply chain at the beginning, in the warehouse, retailers can provide a better customer experience that keeps customers happy and coming back.”