Research has revealed that new tech investments in the online order fulfilment space are high on consumer wish lists this Christmas.
It’s no secret that Australian consumers want their online orders delivered faster and more conveniently, with new research by SOTI confirming that the speed of online deliveries is a key part of online purchasing decisions. According to SOTI’s study, 61 percent of consumers consider delivery speed when deciding whether or not to make a purchase.
According to Michael Dyson, the managing director of Australia and New Zealand at SOTI, “Immediacy is an increasingly crucial aspect of the shopping experience… Consumers want their purchases straight away and expect retailers and e-commerce businesses to provide better delivery options.”
Fourty-nine percent of consumers also reportedly said that free returns ares a top priority, while 33 percent rate click-and-collect services highly and 30 percent like when an e-tailer can specify a delivery time during the checkout process.
“If retailers want their online delivery options to be in line with customer expectations, their supply chain and 3PLs need to provide a faster and more convenient delivery process,” Dyson said.
However, he does note that improved delivery services, like same-day shipping, are challenging for logistics providers, as companies struggle to update their fulfilment methods in-line with increased consumer demands due to high-costs and high travel distances that plague the Australian delivery industry.
“Some retail and e-commerce companies have started offering same-day delivery options. This adds pressure on logistics providers to ensure they are able to keep up with this, and often this option comes with restrictions such as customers being required to live within a particular area.”
Retailers and solution providers also need to overcome consumer expectations around the cost of delivery, as 39 percent of Aussies want a premium, high-speed delivery service, but don’t want to pay the hefty price tag associated with improved service offerings. According to Dyson, the supply chain industry is faced with the difficult decision of either making “new technologies affordable when they enter the market, or, convincing consumers that it is worth the slightly higher delivery price”.
However, one key insight revealed in SOTI’s research into consumer delivery expectations is that 53 percent of shoppers are interested in new technologies, like “self-propelled vehicles and drones”, and how these emerging technologies can speed up standard delivery times.
“Retail logistics providers need to understand and meet the demands of their customers or they will find themselves left behind. This means investing in new delivery methods and the technologies which support these approaches,” Dyson said.
“Consumers have become accustomed to getting free delivery, as so many retailers have offered it for years, so it has become de-valued in a way. The supply chain must add value back into delivery services and new technologies present an exciting future for e-commerce logistics.”