New report highlights “misalignment” between delivery preferences of cost-sensitive online shoppers and UK retailers

Temando’s latest annual State of Shipping in Commerce report has revealed that 86% of UK shoppers prefer free to fast delivery – but retailers assume the preference is more evenly split at 43% and 57% respectively. At the same time, said Temando, the report shows that convenience plays a key factor in conversion with 54% of shoppers stating they would buy from a competitor when the delivery service they seek isn’t provided – 10% more than U.S. shoppers.

“Recent upheavals in the local market such as the uncertainty of Brexit may have impacted the buying behaviour of consumers, who we see to be far more conservative than their American counterparts when it comes to how much they’re willing to part with for Prime-like shipping services,” said Carl Hartmann, co-founder and CEO of Temando.

The report indicates that while some retailers are responding to customer demands with free standard shipping every day (27%), free shipping with minimum spend (32%) and free shipping for new customers (11%), almost a quarter of retailers admitted that that they don’t use free shipping as a promotional tool. Yet 58% of shoppers stated that they’ll shop more online if free shipping was offered, while 54% would consider increasing their basket size to qualify for free hyperlocal delivery (1-3 hours).

“Consumers are pushing for ultimate value, with almost 60% indicating that they’ll abandon cart due to high shipping costs. Local retailers are left scrambling to find the right balance between addressing shoppers’ demands and preventing rising carrier-related costs from cannibalising their bottom line,” said Hartmann.

There were some very interesting findings that emerged from the report, including:

• 69% of shoppers said they don’t feel the cost of shipping fees justifies the quality of service that comes with it
• up to 58% of shoppers will abandon their cart and buy from a competitor if a premium delivery service they are seek isn’t provided
• although 60% of enterprise retailers are focused on expanding into new markets with international shipping, a third struggled with the complexity, while 56% of mid-market retailers struggled with the accuracy of international shipping costs.

Hartmann commented: “The rise in international shipping reflects the borderless nature of ecommerce. No longer are shoppers tied to spending their dollars at a small selection of stores, they can easily access the endless aisles of global sites with a few clicks – with some offering a more superior shipping experience at a better price compared to what local retailers can offer,” said Carl.

“As the trend of uncertainty continues, retailers need to shake off old habits and misconceptions so that they can continue to retain and grow market share in these changing times. Depending on the severity of Brexit, what may seem like a challenge for retailers today is likely to get a whole lot harder in the future.”

Download the complete 2017 State of Shipping in Commerce UK report: http://bit.ly/2uKCNX8