SME News June 2017

24 SME NEWS / June 2017 , their carts due to expensive shipping, while 39% abandoned their carts due to no free shipping, and 26% abandoned their carts due to slow shipping and; • 47% of shoppers will abandon their carts and buy from a competitor’s site when a premium delivery option is not available. Shipping ambitions tempered by rising business costs There is a major disconnect between retailers and consumers when it comes to shipping expectations. While retailers understand that consumers want free shipping, they’re grappling with the rising costs of shipping online orders. • 59% of shoppers will opt to buy from a bricks and mortar store if they perceive that the delivery fee for buying the same item online is too high; • 66% of shoppers think that the high cost of shipping is not relative to the experience provided and; • Whereas, 51% of retailers listed the rising cost of carrier services as a key challenge. Retailers are haemorrhaging costs from premium delivery services. While retailers are experimenting with premium delivery services, they have limited knowledge of how much these services cost and/or are held back by operational barriers. Temando’s research highlights that retailers are struggling to find a profitable model for premium delivery services, and thus, retailer adoption has slowed down. • 53% of retailers offered same-day delivery in 2016 compared to only 29% this year; • 40% of shoppers wanted hyperlocal delivery in 2016, but only 24% of retailers offered it this year and; • 34% of retailers in 2016 offered weekend/afterhours delivery in 2016 compared to only 25% this year. Retailers who succeed in shipping win big Some retailers are getting it right and turning shipping into a profit centre, according to Temando’s research. While many retailers are struggling to put in place a profitable shipping and fulfilment model, there are savvy retailers reaping measurable rewards from innovating their supply chains and offering better shipping choices. • 43% of retailers found that offering better shipping choices created more revenue. • 33% of enterprise retailers reduced their cart abandonment rate when offering more shipping choices, while 50% of mid- market retailers experienced increased sales. • 27% of small retailers reduced carrier costs and 47% of micro retailers improved customer service with new shipping choices. Hartmann concluded, “Competition in e-commerce is not going to subside - in fact, the scale and speed of it is accelerating with the continued growth of Amazon and international shopping. It’s not only consumers shopping abroad more, the number of cross-border shoppers globally is increasing. The retailers who can cross borders and use this changing landscape to evolve will be successful at e-commerce.” Additional survey highlights A major point of difference for retailers is the total experience they offer to consumers – from providing multiple delivery options to better tracking to a seamless returns process. Temando’s study reveals retailers can profit from introducing good shipping experiences to shoppers and grow basket size with delivery campaigns. Shoppers are willing to pay up to £18 for same-day delivery and £19 for international shipping, and 65% would increase basket size to qualify for free premium shipping. Tracking is an area for improvement with only 31% of retailers offering email tracking updates today, despite demand from 78% of shoppers. Returns influence conversion with 43% of Americans stating they would shop more online if offered free and easy returns. The full report is available here: www2.temando.com/ research-2017 For more information, please visit www.researchnow.com