Retail Consumers appreciate the convenience (57%) of online buying
and delivery, the ease of the online ordering process (49%), and the avoidance of going out of their way to pick up purchases (48%). However, inflation and delivery issues impact ecommerce
growth. In 2024, ‘less disposable income’ was the top reason (42%) inhibiting online purchases, up from 37% in 2023. Delivery issues also deter future purchases: 21% of respondents reported negative delivery experiences, 20% cited unreliable deliveries, 17% were dissatisfied with the delivery process, and 16% found deliveries environmentally unfriendly. While retailers cannot solve customers’ financial challenges, they
can address delivery performance issues. Improving the quality and consistency of home delivery can help overcome barriers to purchasing. When it comes to consumer expectations for home delivery, not
all think about delivery in the same way. Consumers have different delivery personas, which can vary by the products being delivered. Delivery personas involve a combination of cost, delivery speed, precision, value-added services, and information about delivery options, allowing retailers to craſt delivery experiences that best fit their customers’ preferences. Descartes’ study reinforces findings from 2023 that fewer
customers are prepared to pay for fast delivery, preferring instead a lower-cost alternative. While the era of instant gratification may not be completely over, more than two-fiſths (44%) cite ‘lowest cost, speed is less important’ as the top delivery preference in 2024, up from 39% in 2023. Furthermore, 20% say they want a ‘precise delivery window, with speed being less important’. Just 15% rate ‘fastest delivery, with timeliness being less important’ and only 13% say ‘fast and precise, with cost being less important’. Expectations of the delivery experience vary not only between
customer delivery personas but also across product categories within those personas, making it increasingly important for retailers to offer more delivery choices to customers. While ‘lowest cost’ remains the most important delivery option for all goods, consumers have understandably different needs for some purchases. For example, low- cost delivery options are a clear priority for purchases of books (50%) and films/music (48%), yet low cost for grocery (30%) and medicines (30%) is only slightly more important than speed (24% for grocery, 27% for medicines). A precise delivery window is important for larger format
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purchases such as furniture (27%) and white goods (26%), as well as groceries (23%) and electronics (23%). Tese results further emphasise the importance of evolving from
a monolithic delivery model towards one that offers consumers real choices. Retailers who cater to each customer’s specific characteristics throughout the buying process, including delivery, will be better positioned to maximise revenue and improve customer loyalty. Attaining greater insight into the delivery expectations and preferences of customers will also help to lower delivery costs and add significant value to the bottom line. In addition to the ‘cost-versus-speed-versus-precision’ aspect
of delivery, it is important to understand how customers consider different aspects of their delivery experience. Once again, security (84%) is cited as the most important aspect of the delivery process, up from 81% in 2023 and 74% in 2022. Tis is closely followed by the cost of delivery (83%), which is up from 79% in 2023, underlining the economic squeeze faced by many consumers. While the most significant shiſt this year is the increase in the
importance of handling returns (75%), up from 69% in both 2022 and 2023, consumers are also looking for ease of ordering and booking (78%) and the ability to track a delivery (76%). Creating a strong chain of custody is even more important
when it comes to making online purchases of expensive items. Providing proof of delivery (40%) is the top priority, up from 35% in 2023 and 30% in 2022, followed by security (36%) and delivery tracking (32%) as the most important factors when purchasing big-ticket items. Te addition of proof of delivery in various forms, including picture and signature capture, is now a core component of a good delivery experience for high-value items. As customers expect greater care of high-value products during delivery, leading retailers and delivery companies need to have the technology in place to provide these capabilities.
November/December 2024 | 51
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