Retailers vs. Consumers: Colliding Points of View on eCommerce Delivery

Why is Amazon so customer-obsessed?

Amazon dominates eCommerce. It built its brand around customer obsession, fueled by fast, affordable delivery. It defines what it means to get goods fast. And it’s where 63% of product searches start.

The majority of consumers (73%) and retailers (75%) agree that “fast” means two days or less – the original, longest-lasting Amazon Prime delivery promise. However, even two-day delivery is too long now.

Already, 45% of consumers use Amazon’s One-Day Delivery service, and 28% use Same-Day. Adoption will only continue to grow as Amazon opens 1,500 new same-day fulfillment centers across the country.

Why? Because 57% of Amazon Prime One-Day and Same-Day Delivery users say those offerings increase the amount of money they spend on the platform.

Amazon’s customer obsession pays off.

Consumers and retailers agree: Delivery promise matters

Amazon conditioned consumers to value a fast and affordable delivery promise. Seventy-eight percent of consumers say free shipping is important when making a purchasing decision, and 53% say fast shipping is important.

Retailers agree, but most view fast shipping as more important than free. Sixty-four percent of retailers say free shipping is important to consumers, but 71% say fast shipping is important.

It’s clear both consumers and retailers know delivery promises impact shopping behaviors.

Take shopping cart abandonment: When a purchase is intentional, the top two reasons for abandoning that purchase are high shipping costs & fees and slow delivery times.

These are logistics problems worth solving, but retailers and brands have reasons why fast and free delivery may not work for their business.

Reconsidering fast and free

Fast, affordable delivery is ideal, but it’s not simple. Logistics is complex and expensive. Cost is the primary reason holding retailers back from improving delivery options. That said, it’s increasingly clear that retailers and brands must address delivery promises to stay competitive.

Fast and free delivery wins. Flexible logistics helps.

Customers spend more for better shipping. Amazon proved that. Faster, more affordable, and competitive delivery options translates to strong brand loyalty. That means more sales.

Positioning goods closer to end consumers makes better delivery promises possible. It centers logistics networks around the customer and that makes for better business. In fact, businesses that center their supply chains around their customers see revenue growth of 13% higher than businesses that don’t.

To see a revenue increase from online sales, retailers and brands must improve last-mile delivery costs and speeds. That can be difficult with traditional logistics solutions. Keeping up with ever-increasing consumer demands requires flexibility. It requires an ability to expand logistics networks fast and test new solutions with a technology-first approach. To solve these challenges, companies complement their fixed logistics network with a flexible logistics model.

A flexible logistics network—one that taps into an open network of warehouse and transportation providers—is a way to test the impact of offering fast and free delivery promises without capital expenditures. It enables retailers and brands to provide better delivery options, which leads to higher customer satisfaction and retention. Flexible logistics makes it possible to keep customers at the center, which makes it possible to compete.

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• • Case Study: Fast Solutions for eCommerce Fulfillment
  • Article: Shopping Cart Abandonment Is A Logistics Problem