Delivery is a critical differentiator for e-commerce success
Finding the right delivery partners and offering easy website navigation with multiple shipping options are critical success factors for eTailers, according to a new study from Accenture. The study, Differentiating Delivery: How to Win the eCommerce Battle, examines the highly competitive delivery market that caters to the online shopping boom and identifies strategies to help postal organizations and shipping companies retain and gain market share.
“eTailers are chasing a rapidly expanding market, in which delivery is becoming a critical differentiator and a strategic priority,” said Brody Buhler, who leads Accenture’s global post and parcel business. “There is no doubt that eTailers are getting strategic about delivery and so should parcel delivery organizations.”
The study showed that two-thirds (66%) of consumers have chosen a retailer based on the number of delivery options and three-quarters (76%) look at a retailer’s return policy before completing an order.
More than one-quarter of respondents (26%) said they use at least three parcel providers to ensure the best price and to mitigate the risk of lost packages or delayed delivery that might result from relying on a single provider. Despite the possibility of one individual shipper providing all required services, a majority of eTailers (79%) still would prefer working with multiple providers.
According to Accenture: “While an overwhelming majority (83%) of businesses survey reported being satisfied with their current primary delivery provider – most likely to be USPS, DHL, UPS and FedEx – the study found that many eTailers are turning to marketplaces like Amazon and eBay to reach more consumers and increase revenue, increasing competition in an already crowded marketplace. In fact, the research found that 69% of eTailers reported earning 41% of eCommerce revenue through an online marketplace.”
Buhler added: “Not only are marketplaces moving into the delivery space, but major retailers are now sidestepping delivery providers in favor of their own services.
“Digital is dramatically blurring the boundaries between eTailers, marketplaces and delivery providers. Adapting to these new threats as well as new opportunities is not only urgent but critical to future growth of parcel organizations.”
The study indicates that to remain competitive within a rapidly changing global eCommerce market, delivery companies and postal organizations should focus on five key areas: keeping customers happy; better return options services; price intelligence; developing targeted products to address customers’ specific needs (segmentation); and offering cross-border solutions.
