How to deliver on your customers’ delivery expectations this holiday season
The secrets to fast, efficient shipping during the festive season.
Three in four Australians now shop online every week, and whether they’re buying beds or beauty products, fitness equipment or flowers, online customers all have one thing in common: they want their purchases to be delivered quickly.
So, at the end of the year, when customers are purchasing seasonal gifts, it’s more important than ever for e-commerce retailers to meet customer expectations for shipping and delivery.
“A good shipping strategy is something that sets and meets customer expectations without impacting a business' bottom line,” says Brett Chester, the chief marketing officer of multi-carrier shipping platform Shippit. “It also empowers businesses by giving them back time that can be eaten up with administrative tasks [allowing them to] spend on more important things like innovation, product development and planning for the future.”
"A good shipping strategy sets and meets customer expectations without impacting a business' bottom line."
Here’s how to create an effective strategy that meets shipping expectations and delivers on customer satisfaction – without breaking the bank.
1. Communicate delivery times clearly
Despite retailers’ best efforts, there’s always the possibility that shipping delays will occur, especially during major shopping events like Black Friday and Cyber Monday in November, and Christmas sales in December.
To mitigate disappointment, it’s essential to communicate with customers about delays as soon as possible.
“One thing we know is that consumers don’t like a surprise,” says Brian Walker, CEO and founder of The Retail Group. “A lack of transparency and customers being caught by surprise can be pretty injurious to trust.”
To ensure communication channels are open, Walker says retailers should publish all shipping information – including approximate delivery times, prices and pre-Christmas purchase cut-off dates – online and let customers know about possible delays before they purchase.
And don’t forget to publish your return policy. Shoppers will want to know whether you accept returns or offer refunds, and whether they have to pay to return items.
2. Provide a range of delivery costs
Where possible, multiple shipping options should be provided. Don’t assume that all customers want the cheapest delivery option; some may be willing to pay a premium for speedy shipping (especially if they’re running late with their holiday shopping).
“Increasingly, we’re seeing retailers offering a choice of free, standard delivery or paid express delivery. The majority of customers will still choose the cheaper option, but having that optionality is becoming more important,” Walker says, reiterating, “it adds up to knowing your customer and providing them with the choices that are relevant to them”.
3. Offer super-speedy delivery
The concept of ‘fast delivery’ has been redefined in recent years, as more retailers, not to mention on-demand grocery delivery start-ups, seek to differentiate themselves with ever faster delivery times.
Today, many retailers are offering two-day, same-day or same-evening delivery times in addition to standard shipping options. Consider how quickly you can deliver shipments to customers – and remember that you can always offer same-day or next-day delivery to customers who live within a specified distance from your shop or warehouse.
If you do decide to offer super-fast shipping, ensure that your fulfillment, inventory and tracking processes are seamless and that your site and staff can handle large volumes of orders.
4. Offer collection services
Since COVID-19, when online shopping rates soared, consumer expectation has evolved; today, many buyers expect options like click and collect, which allows customers to find a product and pay for it online before heading in-store to pick it up themselves.
Studies have also shown that nearly 90 per cent of customers expect to use kerbside pick-up in the future, and that customers who enjoyed a positive experience with this option are more likely to ship with that brand again.
5. Keep communicating, post-purchase
Today, customers expect to know exactly where their parcel is as soon as they have pressed ‘purchase’. To offer customers reassurance – and a sense of control – consider providing real-time shipment tracking, SMS notifications (that alert customers when parcels have been dispatched or delivered) and email updates upon delivery.
When clothing retailer Cue partnered with Shippit, which offers real-time delivery updates to customers, the clothing brand saw a 70 per cent increase in sales conversions and an overall increase in sales of 130 per cent.
“The more information and the more options a consumer has, the more confidence they will have in making a purchase because they know what to expect – and that all comes back to communication,” Chester says.
Real-time delivery notifications can also be personalised so that they become part of the post-purchase customer experience.
"The more information and the more options a consumer has, the more confidence they will have in purchasing."
6. Consider free shipping
Offering free shipping is one of the top reasons customers decide to purchase, and many shoppers now expect free shipping, abandoning their cart to shop elsewhere if it isn’t available.
For retailers, while ‘free shipping’ carries a business cost, absorbing this cost may be worthwhile if it secures a sale. Find out more about how to offer free shipping without breaking the bank here.
7. Go green
Another factor to consider is the environment as there is a growing demand among younger shoppers for sustainable and compostable packaging. Many customers have come to expect ethical brands’ packaging to reflect their stance on the environment, while others may want to pay extra to offset carbon emissions (a service that can be implemented with apps such as Carbon Click.
8. Look at shipping as a long-term investment
While many retailers simply see shipping as the final step in a sales transaction, both Walker and Chester say good shipping experiences during peak sales time should be seen as a long-term investment in customer retention and growth.
Walker points out that most shoppers have pre-researched their purchases before they make them, and checking shipping times and costs is often part of this process. “In addition to price, offering a better shipping deal can be the thing that gets you across the line,” he says.
Holiday shipping checklist
Publish shipping guidelines, pricing and timeframes online and ensure they’re easy to find
Offer customers multiple shipping options to meet shipping expectations
Communicate cut-off purchase deadlines ahead of Christmas
Where delays are expected or occur, communicate clearly and quickly with customers to minimise disappointment or frustration
Ensure you have a customer-friendly returns strategy in place ahead of the sales period to meet shipping expectations
All references to any registered trademarks are the property of their respective owners. Afterpay does not endorse or recommend any one particular supplier and the information provided is for educational purposes only.
Categories