OPERATIONS
HOW CONSUMERS ARE SHAPING DELIVERY
BY BRIAN SLIJP, HEAD OF STRATEGIC ALLIANCES, SENDCLOUD
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Te number of parcels shipped worldwide grew by a whopping 27 per cent in 2020 as more than 131 billion parcels found their way to the consumer.
Retailers across all sectors in the UK reported large increases in online sales in 2020, with total online retailing values increasing by 46.1 per cent according to the Office for National Statistics – the highest annual growth experienced since 2008.
Carriers all around the country found themselves having to grapple with unprecedented record volumes, which placed an enormous strain on both delivery services and infrastructure.
Although most carriers managed to cope with the high number of parcels, it is unlikely that lower pre-Covid volumes will return. Consumers have become accustomed to shopping online with receiving parcels part of their routine.
It is time for carriers to come to terms with the challenge of transforming their networks to the reality of eCommerce logistics being their main source of income.
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In attempts to deal with burgeoning parcel volumes and to become ‘future proof’, carriers invested massively in logistic hubs, the electrification of their fleets, and the robotisation of processes.
Everything to ensure the consumer gets his order in his hands as quickly as possible. But is this, really, what today’s consumers want?
CONVENIENCE IS DRIVING THE FLEXIBILITY TREND It doesn’t seem like it. While speed is indeed important, it is only a small part of the whole delivery experience. In fact, UK consumers are becoming more patient, as research shows that they are willing to wait around 4.6 days to receive a parcel compared to 4 days one year ago.
Tere is, however, something else consumers want in 2021: flexibility. Consumers nowadays want to choose themselves where, when and how an order is delivered.
According to Sendcloud’s eCommerce Delivery Compass, 67 per cent of UK consumers said flexibility in delivery options is important to them. Another 45 per cent even want to change the delivery time slot when a parcel is already on the road.
Whereas retailers used to determine the shipping option for consumers, consumers are increasingly taking matters into their own hands. To make a purchase, the consumer wants to be able to choose - next day, same day, green, or even nominated day delivery.
Tis ‘flexibility trend’ only seems to continue in the next few years, as millennials are setting the bar here. While only 53 per cent of boomers in the UK consider flexibility as a key element of delivery, a whopping 4 in 5 millennials (79 per cent) do.
As Generation Y's purchasing power grows, flexibility is becoming the norm rather than the expectation. As a result,
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