This article outlines 8 product delivery statistics all retailers Should know in 2021.
Even before the pandemic, small businesses and large corporations alike were experiencing a rapid increase in online shopping. Now, however, the online retail industry is booming, and it doesn’t show any signs of slowing down. Thanks to its safety and convenience, e-commerce is many shoppers’ preferred shopping method, but some businesses are struggling to play catch-up.
Retailers couldn’t have anticipated the pandemic, nor the effect it would have on their inventory and business procedures. Thus, many were unprepared to offer quick, easy delivery. However, if they want to retain loyal customers, attract new ones, and — most importantly — stay in business, they must understand what people expect when it comes to shipping and deliveries.
1. Online Spending Represented 21.3% of Total Retail Sales in 2020
Last year, consumers spent $861.12 billion with online U.S. retailers, marking a 44% increase from the previous year. Now, online spending accounts for nearly one-fourth of all retail sales.
Of course, the COVID-19 pandemic had a lot to do with this sudden surge in online shopping. However, the next generation of consumers has also boosted the demand for online retailers and more delivery options — a trend that will likely continue for the foreseeable future.
2. Free Shipping and Convenience Are Key Motivators for 70% of Consumers
While promotions and discounts do motivate consumers, free shipping and the convenience of online shopping are their biggest incentives. Therefore, businesses should consider offering free shipping to attract more customers. You might even establish a minimum purchase requirement, which encourages customers to spend more money to receive free shipping.
3. Nearly Half of Consumers Are Willing to Wait Two Days for Fast Shipping
In the age of Amazon, 40% of U.S. shoppers are only willing to wait two days for orders that promise a fast delivery. Another 27% expect their orders to arrive within 48 hours. Meanwhile, only 12% will wait five to 14 days. These statistics prove that fast processing, shipping, and handling is a must if companies want to impress — and keep — customers.
4. Roughly 35% of Millenials Choose the BOPUS Delivery Option
Buy online, pick up in-store — or BOPUS — is becoming a popular delivery option among millennials who are more likely to try nontraditional methods than baby boomers and seniors.
Therefore, it’s important that you offer curbside or in-store pickup or partner with a store that does in order to offer customers more delivery options.
5. Employee Theft Is Responsible for 44% of Inventory Shrinkage
At the risk of stating the obvious, customers never receive stolen packages. Therefore, it’s important to reduce if not completely eliminate employee theft. Conduct regular cycle counts and use a warehouse management system to deter thieves. Doing so will ensure your customers are happy and that your bottom line continues to grow.
6. 48% of Customers Are Unlikely to Purchase More From Companies Whose Packages Arrive Late
Nearly half of U.S. shoppers say they’re unlikely to buy more items from companies that don’t keep their fast delivery promises. In other words, you’ll lose customers if any part of your fulfillment, shipping, and delivery process has even the slightest holdup.
Prioritize streamlining these departments to ensure packages arrive in a timely manner and that you don’t disappoint otherwise loyal customers.
7. 65% of Consumers Want Greater Delivery Flexibility
Creating a memorable delivery experience and a loyal customer base is all about offering more delivery options. Younger shoppers want more self-service options, including the ability to re-route shipments, expedite new deliveries, and pick up packages from lockers and similar contactless locations.
Ensure the experience is convenient for your customers by providing as many of these options as possible.
8. More Than Half of Customers Want Real-Time Order Status Visibility
Customer expectations regarding the shipping process and order status visibility are advancing rapidly. Shoppers want to know exactly where their packages are at all times and when their shipment will arrive. Amazon has even gone one step further by offering time-stamped photo evidence of delivered packages.
These transparent updates reduce customer concerns and minimize the need for customer service representatives.
Winning the Final Retail Mile
The last mile of retail is becoming more hurried and more expensive. Consistently providing fast, convenient shipping is no cakewalk. However, you must understand industry standards and customer expectations if you’re to win the final retail mile and make sure your business thrives.
Credit: Devin Partida is a retail writer and blogger. You can read more posts from Devin at ReHack.com, where she is the Editor-in-Chief.