As e-commerce continues to dominate retail, the early months of the year present a critical time for retailers to refine their delivery and returns strategies, ensuring customer satisfaction and operational efficiency.
The Importance of Delivery in E-Commerce
The post-purchase experience is increasingly becoming a determinant of customer loyalty and brand reputation.
In the wake of a retail sales increase that fell short of the previous year’s growth, it’s imperative for retailers to focus on the entire e-commerce journey, from browsing to delivery. A seamless delivery process not only fosters customer loyalty but also enhances revenue and enables innovative business models, while simultaneously boosting efficiency and reducing emissions. However, subpar delivery experiences can deter customers and damage brand credibility. A survey by nShift reveals that nearly half of consumers would hesitate to recommend a retailer following a poor delivery experience, while an efficient delivery process would encourage 58% of customers to make repeat purchases.
Addressing the Costly Returns Issue
Returns management is a significant expense for retailers, with an average cost of £20 per item for the return, repair, repackaging, and resale process.
With returns costing British retailers approximately £7 billion annually, it’s crucial to implement a consumer-friendly returns process that aligns with customer expectations for free returns, without eroding profit margins. Innovative digital returns solutions can convert a portion of returns into exchanges, and a robust reverse logistics system can recirculate returned items, maximizing their revenue potential.
Sustainability: A Growing Priority
Environmental sustainability is a pressing concern for consumers, with 81% favoring brands that are environmentally responsible.
However, skepticism about brands’ sustainability claims persists. Retailers can build trust through transparent emissions reporting, especially for deliveries. Compliance with regulations like the EU’s emission reporting rules and the upcoming Corporate Social Responsibility Directive (CSRD) is essential. Detailed CO2 emissions tracking for each delivery not only adheres to regulations but also solidifies a retailer’s commitment to sustainability in the eyes of consumers.
The Advantages of Robust Delivery Management
A diverse network of carrier connections is vital for reliable and flexible delivery options.
Retailers offering a variety of delivery choices can see conversion rates increase by up to 20%. A comprehensive delivery management platform can enhance internal operations, allowing retailers to ship more items without expanding their workforce, and facilitate cost and performance comparisons among carriers to ensure value for money.
The groundwork phase is a pivotal time for retailers to establish a robust delivery management system that meets consumer expectations and regulatory requirements, ultimately driving e-commerce success.
