Preferences and Concerns

According to Digital Commerce360, a recent survey of 1000 e-commerce retailers and 1000 consumers in late 2022, revealed the following interesting, but not too surprising, headlines:

Consumer preferences:
  • Over 60% wouldn’t consider ordering online without free shipping.
  • 76% ranked free shipping as the most important factor in online shopping decisions, with delivery speed a distant second at only 43%.
  • 68% want to be notified when a purchase ships, and 45% when it is delivered. 59% want to receive shipping updates and tracking.
  • Just 10% want same-day or next-day delivery, down from 18% in 2021

Retailer concerns:
  • Over 40% said the cost of shipping was their biggest concern
  • About 75% offered free shipping, but over 45% required a minimum purchase threshold to qualify.
  • Returns are a major headache for e-commerce retailers, but about 32% give shoppers the ability to return goods with minimal hassle and often for free.
Downturn?

Trucking, warehousing, and parcel delivery companies cut a combined 16,900 jobs in January according to figures released Friday by the U.S. Bureau of Labor Statistics. While February is usually a soft month, these numbers seem to represent a broader drop in demand due to other factors.

Not everyone is retracting in size, however. Sam’s Club is adding distribution centers to speed fulfillment times and Target announced it is investing over $100 Million to expand its next-day delivery services.

These strategic moves are an effort to compete with Amazon’s huge nationwide network. “The key thing they (logistics companies) are all trying to chase is shipping small parcels over the shortest possible distance.” – Gartner Supply Chain Research
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Contact Todd Flaherty, Partner to discuss your business needs.
Todd Flaherty | (207) 610-7748 | tflaherty@shipright.biz
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