Home deliveries are becoming evermore popular in the age of e-commerce, but a new report by Descartes Systems Group suggests many delivery companies are falling short in related Final Mile deliveries.
“In our study, consumers indicated they will increase their e-commerce purchases in the future, but 73% of them said they experienced a delivery failure in the last three months,” said Chris Jones, executive vice-president – industry and services. “The results of poor delivery performance can be catastrophic for retailers, with almost one-quarter of the respondents in our study citing that they did not order from that retailer again.”
Descartes surveyed 8,000 consumers across Europe and North America for the findings published in Ecommerce: Is retailer fulfillment and delivery performance keeping up with sales growth?
The top delivery-related issue cited in the report included late deliveries (26%), followed by items arriving at a different time than expected (22%), and the length of time required to make a delivery (22%).
While 24% or respondents lost trust in a carrier because of an inadequate delivery, retailers are also paying a price. When the deliveries failed, 23% of those who were surveyed said they stopped ordering from the retailer, 21% lost trust in the business, and 16% shared the poor experience with friends and families.
Negative delivery factors cited by one in five respondents included the fact that deliveries are not environmentally friendly (20%), unreliable deliveries (19%), bad delivery experiences (19%), and delivery experiences that left them dissatisfied (16%).
But the report findings demonstrate the growing trend in e-commerce continues. Forty-eight percent of respondents say they plan more online purchases and deliveries in the future – up 2% from current levels and 13% above pre-pandemic totals.
When asked why they’ll have more online purchases delivered than prior to Covid-19, 34% said delivery processes have improved, and 20% cited reliable regular delivery drivers.
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