Delivery failures prove costly for online retailers

Stock availability and unsuitable delivery times have resulted in one-fifth of online Christmas shoppers using an alternative retailer, according to new research.

The third annual JDA/Centiro Christmas Customer Pulse report found that 12 per cent of UK adults who shopped online last year said that they switched to an alternative retailer because their preferred store did not have items available online. In addition, seven per cent stated that they had shopped with an alternative retailer because delivery options did not suit their needs.

The report also found that there was a slight decline in the number of delivery and Click and Collect issues encountered by online shoppers (32 per cent reported issues with online orders, compared with 33 per cent last year). Issues included late deliveries (31 per cent), no order received (23 per cent) and damaged items (22 per cent).

With this in mind, 78 per cent of respondents stated that they would switch to an alternative online retailer following a poor experience.

Of the 39 per cent of consumers who used Click and Collect services in December, one in five said that they would use the service more next Christmas. Avoiding delivery charges was cited as the top reason for using Click and Collect (53 per cent), closely followed by it being more convenient than home delivery (50 per cent).

Jason Shorrock, vice-president of retail strategy EMEA at JDA, commented: “Customers expect products to be available 24/7 and for retailers to offer convenient delivery and collection options. This is the added level of complexity that retailers must be able to cope with. Ultimately, a smarter and more effective supply chain shouldn’t just be for Christmas – without one, retailers risk damaging customer loyalty and their profits throughout the year.”

Niklas Hedin, CEO of Centiro, added: “As many online shoppers increasingly come to expect same- and next-day deliveries as the norm, the prospect of customer loyalty for promises kept brings with it significant potential gains. Those retailers that can effectively scale their delivery networks to offer flexible delivery options while at the same time guarantee order promises will be the winners in 2017.”

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