Unraveling Delivery Preferences and Prioritizing Customer Needs

A customer’s wishlist extends beyond products to encompass the entire delivery journey – highlighting the criticality of order fulfillment and handling shipping issues and problems adeptly. The holiday season amplifies consumers’ demand for hassle-free delivery services, with a notable 78% of digital natives willing to pay additional charges for premium delivery. 

These insights underscore the urgency for online sellers to better understand how to prioritize customer needs and refine their strategies to address common delivery concerns during the Christmas season. ShipEngine’s Peak Season Report 2023 offers a glimpse into these trends, explaining how with the right knowledge, retailers can navigate delivery issues successfully and secure customer loyalty.

Closing the Delivery Expectation Gap

The gap between what customers want and what online sellers can deliver during the Christmas season is a prime concern in today’s e-commerce market. As retailers brace for the influx of holiday orders, they’re confronted with the stark reality of delivery issues that can tarnish the customer experience. While 74% of consumers plan to cut back spending, an overwhelming majority still prioritize swift and efficient delivery – underscoring a potential gap in merchant offerings. 

Retailers are often caught in a tug-of-war, managing operational challenges while striving to align with consumer demand for addressing shipping issues like lost parcels, missing parcels, or undelivered parcels, and a failure to deliver on these aspects can significantly impact customer loyalty. Online sellers need tactics that go beyond the surface to provide a deeper understanding of how to prioritize customers’ needs and mitigate the risk of failure to deliver.

The Peak Season Report by ShipEngine identifies late delivery as a primary concern for 40% of global consumers, highlighting the necessity of timely order fulfillment. Even more, 39% of shoppers feel the pinch of high shipping costs, and a significant 37% grapple with the anxiety of potentially stolen or missing parcels – a concern that can intensify amidst the festive flurry. So retailers face the critical task of planning against these shipping problems and delivery issues, and so the report offers a glimpse into strategies to mitigate these concerns, critical for aligning delivery services with what customers want.

Have a very Merry Shipping Experience

There’s a marked difference in delivery issues and priorities between consumers and merchants that becomes especially pronounced during the festive period. For instance, while 15% of consumers emphasize flexible returns, merchants seem to underestimate the importance of this when shopping online, pointing to a potential oversight in aligning services with customer needs. Additionally, the convenience of delivery, including factors like location and timing, is highly valued by 18% of consumers, as opposed to 12% of retailers, highlighting another area where companies may be undervaluing its importance and missing an opportunity to differentiate themselves.

Such insights indicate that consumers are placing greater value on aspects such as delivery visibility and tracking, which 15% of consumers prioritize during the peak season. Retailers are thus encouraged to consider incorporating a blend of delivery options, potentially introducing charges for premium services that guarantee speed, convenience and visibility.

It’s also worth noting that during the holiday season that free shipping incentives can be leveraged, as highlighted by Deloitte which says 8 in 10 people are willing to meet a minimum purchase threshold for free shipping. To navigate these pressures, ShipEngine suggests that online sellers must fine-tune their shipping tactics and carefully select their providers in order to meet expectations. Tools such as ShipEngine play a crucial role in optimizing operational workflows by offering seamless integration with over a hundred carriers worldwide. They facilitate the simplification of tasks like label generation, scheduling pickups, and adhering to compliance standards. This integration streamlines the shipping process, substantially reducing manual labour and improving precision, which contributes to a dependable and efficient shipping experience for both retailers and customers.

Be Guided Through Seasonal Challenges and Delivery Issues

Managing the holiday season successfully hinges on how well delivery issues are handled and general expectations are met. Peak Season Report 2023: Building a risk-resistant ecommerce strategy holds within its pages the strategies that resonate with today’s consumers, addressing their primary concerns like shipping costs, delivery speed, and the efficiency of order fulfillment, providing a path to navigate these challenges and maintain profitability amidst the festive season.

The post The Delivery Dilemma: Navigating Delivery Issues in the Holiday Season  appeared first on Shipstation API.

At the heart of this valuable report lies a crucial revelation for online retail success in 2023 – the undeniable importance of knowing which are the best selling platforms and how to utilise them to grow your business. Our research uncovers impressive numbers and expected results, suggesting billions in ecommerce marketplace sales during the holiday season. This shift undeniably signifies a notable change in consumer behaviour.  So as you read along and discover more about what the season holds, this blog will equip you with invaluable insights and strategies that are critical for steering your ecommerce venture towards success in the golden quarter.

Why Best Selling Platforms Matter

In the mass of online retail strategies out there, one beacon shines brighter than the rest – the leveraging of best selling platforms. Mastering the ins and outs of top performing channels is a necessity for online merchants eyeing success to close out the year. 

A staggering 88% of global shoppers intend to conduct their holiday shopping on ecommerce marketplaces this year. Adding to this momentum, leading retailers from across North America and Europe, including Macy’s, H&M, Decathlon, and B&Q, have recently launched marketplace propositions. By opening up their online storefronts to third parties, these retailers aim to attract shoppers and build brand loyalty.

Research shows that roughly one in every two online orders during the holiday season will happen via a marketplace. This includes not only the industry giants like Amazon and eBay but also specialised platforms like Etsy. Selling on marketplaces continues to boom, as the platforms are projected to account for almost £202 billion in sales over the peak season, outpacing the broader ecommerce market, according to Retail Economics. Notably, North America is set to claim the lion’s share, with £145.9 billion in sales, led by industry giants like Amazon, Walmart, and eBay which are among the largest marketplaces worldwide. The EU is also set to make a significant mark with £35.1 billion.

What’s Behind the Marketplace Growth for Consumers

Best selling platforms redefine the shopping experience through a harmonious blend of choice and convenience. According to our research, consumers identify 5 top benefits of shopping with online marketplaces. First, they offer a diverse array of products from many sellers, which simplifies the decision-making process for time-sensitive shoppers. Moreover, these platforms excel in delivering competitive pricing by capitalising on their extensive scale and promoting healthy seller competition. For those looking for even greater savings, specific platforms offer memberships encompassing perks like complimentary delivery and exclusive deals. We break down in detail these dynamic offerings and more that are pushing shopping trends so you can explore your options amongst the best selling platforms and make enlightened decisions.

Curious to know the other two top reasons why consumers are such avid users of marketplaces? Head to our Peak Season Report 2023 where you’ll find a more in-depth analysis and actionable strategies that will equip your business for a successful high season.

Revolutionise Your Approach

Marketplace growth results in heightened consumer expectations. Offering a wide array of products and competitive pricing isn’t enough, with delivery experience being a critical factor. 50% of shoppers expect an online purchase to arrive in under two days during peak season. Marketplaces must offer various delivery options and elevate their delivery experience to match consumer expectations, as well as retailers utilising them to grow their business. Outsourcing is a great way to build robust shipping functionality with less time and resources.

In this dynamic digital environment, tools like ShipEngine are pivotal in streamlining operations as it integrates seamlessly with 100+ carriers globally, simplifying label generation, pickups, and compliance. Ultimately, this reduces manual effort and enhances accuracy, ensuring a reliable shipping experience. With an overwhelming majority of global shoppers gravitating towards these online hubs for an extensive array of benefits, coupled with the growing popularity of second-hand marketplaces, this creates an ecosystem that caters to a diverse spectrum of shoppers who need a variety of shipping needs. Notably, there is ample room for growth and expansion, as over half (57%) of shoppers express a desire for their favourite brands and products to be more widely available on online marketplaces. This statistic highlights the significant potential for further growth and dominance of selling on marketplaces in the online retail landscape.

So, are you ready to take on the 2023 Peak Season? Dive deep into the complete report, Peak Season Report 2023: Building a risk-resistant ecommerce strategy. It offers practical, actionable advice on seamlessly integrating best selling platforms into your peak season strategy. From leveraging the power of choice and convenience to competitive prices and membership incentives, our guidelines are made to bolster your ecommerce journey.

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