Retail


DELIVERY WOES AMID ONLINE GROWTH


As ecommerce thrives in the UK and globally, retailers must ask: does a mature ecommerce market meet consumer delivery expectations? Descartes and SAPIO Research surveyed 8,000 consumers in Europe and North America to assess ecommerce and home delivery performance. Andrew Tavener, head of marketing for Fleet Solutions at Descartes Systems, provides insights.


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


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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


n markets like North America and the UK, ecommerce is expected to surpass brick-and-mortar purchases within the next 12 months. Online consumers are becoming more sophisticated, with


purchasing decisions and brand perceptions increasingly influenced by home delivery performance. Expectations around cost, speed, timeliness, and security vary across countries, demographics, and purchase types. Improving delivery reliability, security, and cost-effectiveness can


help retailers gain competitive differentiation, enhance customer loyalty, and boost ecommerce profitability. Consumer interest in ecommerce continues to grow, though not


as rapidly as during the pandemic. Te study shows that 44% of consumers intend to increase their online purchasing frequency to at least every two weeks, up from 34% in 2023 and 32% in 2022. Consumers expect to make almost half (49.5%) of all purchases online within the next year, a 4.9% increase from today. In the UK (59%) and North America (52%), consumers expect to buy more online than in physical stores within a year. 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


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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’. 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. 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.


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