Temando 2017 State Of Shipping Report Reveals Misalignment Between Cost-Sensitive Online Shoppers and UK Retailers

 

Appetite for low cost, high value shipping experiences high for British consumers in the era of Brexit

 

London, UK: 27th July, 2017 – Temando, a leading shipping and fulfilment technology company for commerce, today announced the findings of its annual State of Shipping in Commerce report which collected survey data from 275 retailers and 1298 online shoppers in the United Kingdom this year. The data reveals that 86% of shoppers prefer free to fast delivery, yet retailers assume the preference is more evenly split at 43% and 57% respectively. At the same time, convenience plays a key factor in conversion with 54% of shoppers stating they would buy from a competitor when the delivery service they seek isn’t provided - 10% more than U.S. shoppers.

“Recent upheavals in the local market such as the uncertainty of Brexit may have impacted the buying behaviour of consumers, who we see to be far more conservative than their American counterparts when it comes to how much they’re willing to part with for Prime-like shipping services,” said Carl Hartmann, co-founder and CEO of Temando.

The report indicates that while some retailers are responding to customer demands with free standard shipping every day (27%), free shipping with minimum spend (32%) and free shipping for new customers (11%), almost a quarter of retailers admitted that that they don't use free shipping as a promotional tool. Yet 58% of shoppers stated that they’ll shop more online if free shipping was offered, while 54% would consider increasing their basket size to qualify for free hyperlocal delivery (1-3 hours).

“Consumers are pushing for ultimate value, with almost 60% indicating that they’ll abandon cart due to high shipping costs. Local retailers are left scrambling to find the right balance between addressing shoppers’ demands and preventing rising carrier-related costs from cannibalising their bottom line,” said Carl.

Key findings:

·        Retailers look at investing in CX

With 69% of shoppers stating that they don’t feel the cost of shipping fees justifies the quality of service that comes with it, it reflects the concerns that enterprise retailers have on the lack of customer-centric carrier services (45%) and rising cost of carrier services (58%). While almost all retailers acknowledged the value of shipping to enhancing customer experience (CX), only 29% are planning to invest in it in the next 12 months while 16% admitted that they struggle with it. 32% of retailers saw an uplift in CX when they introduced better shipping options.

“A positive or negative shipping experience has a larger impact in the UK compared to the U.S. as a higher share of shoppers here will decide if they’ll either be a repeat customer or never shop again with a retailer based on the quality of their delivery experience.” said Carl.

·        Convenience, alongside cost, is a key conversion metric

Although cost plays a key role, up to 58% of shoppers will abandon their cart and buy from a competitor if a premium delivery service they are seek isn’t provided. Only 27% of shoppers would visit the same retailer’s physical store upon abandoning cart and 16% would visit the mall to complete the purchase.

“Rather than offering a single, generic shipping option, retailers need to map their delivery experiences to the lifestyle of today’s customers. Dynamic choices such as hyperlocal or same-day delivery for those with inner city postcodes, or specified time-slot delivery for busy families based in suburban neighbourhoods are options that retailers may want to consider. This way shoppers will be less inclined to seek alternative ways to purchase products and will continue on the buying path as intended,” said Carl.

·        Internationalisation brings threats and opportunities

Although 60% of enterprise retailers are focused on expanding into new markets with international shipping, a third struggled with the complexity, while 56% of mid-market retailers struggled with the accuracy of international shipping costs.

“The rise in international shipping reflects the borderless nature of ecommerce. No longer are shoppers tied to spending their dollars at a small selection of stores, they can easily access the endless aisles of global sites with a few clicks – with some offering a more superior shipping experience at a better price compared to what local retailers can offer,” said Carl.

“As the trend of uncertainty continues, retailers need to shake off old habits and misconceptions so that they can continue to retain and grow market share in these changing times. Depending on the severity of Brexit, what may seem like a challenge for retailers today is likely to get a whole lot harder in the future.” concluded Carl.

Download the complete 2017 State of Shipping in Commerce UK report: http://bit.ly/2uKCNX8

 

 

Methodology

Temando commissioned Research Now to conduct a survey targeting UK-based online shoppers and retailers across a variety of categories in February 2017. In total, the company received responses from a sample size of 1298 online shoppers and 275 retailers. This data is compared against data gathered for the 2016 State of Shipping in Commerce report where possible, with patterns and differences outlined. Based on these findings, the research can predict a pattern of outcomes based on the theoretical propositions we come across in the data analysis process.

 

About Temando

Temando (“I send you” in Spanish) is a global technology company that exists to connect the world’s logistical resources into a single intelligent software platform and to make commerce universally accessible to everybody. The company’s solutions give merchants the power to move goods from anywhere they are to wherever they need to be, no matter how they need to get there. Temando is a Neopost Company headquartered in Australia, with offices in Brisbane, Sydney, San Francisco, London, Paris and Manila. For more information, please visit temando.com.

 

About Research Now

Research Now is an independent, single source for international online research across Europe, the Middle East, the Americas and Asia-Pacific.  The company, which is ISO 20252 accredited, has been providing proprietary, high-quality online research panel samples since 2001. Research Now’s panels are used for market research purposes only and comply with or exceed all applicable industry standards published by ESOMAR, the MRS, the AMSRS (Australia). The company manages about 2,000 research projects per month, which are executed by industry-leading programming and project management teams. Research Now is comprised of multi-lingual, online research experts working with its clients across 22 offices worldwide.

 

UK Media Contact

Richard Wolfe

R Wolfe Associates

T: + 44 (0) 7980 676139

E: richard@rwolfeassociates.com