There are few things worse than wasting precious spare time organising, chasing and re-organising deliveries of online purchases. Chances are that you will miss the redelivery as well, a vicious circle indeed. In fact, it is such a negative experience that recent research commissioned by IMRG shows that over 43% of regular home shoppers view the delivery experience and delivery options as key influencers in their choice of retailer. This is further underlined by statistics from IMRG showing up to 60% online basket abandonment rates.
We have already experienced a significant shift in our shopping habits with online becoming the norm. This trend will continue unabated, but not without some challenges.
The traditional high street shopping format remains appealing but, in truth, convenience and cost are at the core of retail, and online shopping hits these sweet spots full on.
The one big roadblock is distribution.
An online retailer’s distribution strategy is as important as the location of a shop is to a traditional retailer, for whom position on the high street is key to attracting as many potential customers as possible. But prime locations equal premium rents. As I see it, Utopia for online retailers must be to replicate the traditional model (but without the high rents).
An online shopping site that is easy to navigate and presents the products in the best possible light is essential. Add to this the convenience of delivery and I believe online retailers can really set themselves apart.
When I consider a SameDay delivery service that I launched in Manhattan in 2000 for Barnes & Noble, not much has changed over the years. Whether delivery convenience is slotted into timed windows or a same day service, cost remains the key obstacle.
The question is why?
Paying more than 10% of the purchase price of an order for delivery is a tough sell, but we have witnessed that retailers offering convenient delivery options often attract higher average basket values. Shoppers who are eager to receive their goods justify the delivery cost by consolidating their purchasing with retailers that can offer a wide range of products - think Amazon, Net-a-Porter and ASOS, to name a few.
Successful retailers will have considered carefully how they can keep up with demand especially in peak periods where purchase levels can increase five-fold on average volumes. This means having a suite of delivery options. There is no single distribution partner in the UK that can offer all of these choices so retailers need relationships with several distribution partners.
As I think back to 2000 again, I am reminded of the IT boom that spawned many virtual shopping sites. For every success, there were countless failures and the bricks and mortar retailers generally prevailed.
It seems we have now come full circle and the ‘high street’ has moved online. But to remain competitive, retailers need delivery convenience options that are efficient, reliable and robust.
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