A recent study by KPMG was largely based on an online survey of 18,430 consumers living in 50 different countries. The purpose of this study is to provide retail companies with global insights into customer behaviours and preferences. The study concluded that over 23% of millennials prefer to shop in-stores instead of online. Most often, it is because of “delivery”.
Real-time vehicle routing, low delivery times, clear estimated delivery dates, and competitive prices can be determining factors in deciding whether to purchase from a seller or not. Customers, both new and loyal, expect clear and accurate communication, with in-transit communication during last-mile delivery. A sure-fire way that an online retailer can remain competitive is to continually innovate, become more agile, and be efficient in meeting the growing demand of customer behavior.
Check out how California baby increased conversions by 7% by providing accurate delivery dates for their customers.
Unsatisfactory delivery experiences can cause a lot of problems for online retailers. In today's competitive eCommerce landscape, a great delivery experience is far more than simply sending something by post or courier. It is a chain of events filled with opportunities – some of which you may be missing out on if you don't have delivery value-adds like receiving an estimated delivery date, tracking number, and delivery notifications throughout the journey.
It is therefore important for a retailer to map out a defined fulfilment strategy.
Since the world of shipping and fulfillment can seem complex when you’re not familiar with it, we’ve referenced some studies that will help you plan out a delivery strategy for your store.
Remember, it can be a huge waste of your marketing dollars to bring traffic to your site, have the customers add the items to their cart, and then let them leave the site due to a lack of personalized delivery options and costs. Such a poor delivery experience can badly damage the reputation of your store and even break your customers’ trust. As a retailer, you need to put in place an advanced eCommerce fulfilment system that gives your shopper a high level of visibility into their orders, said Dave Weiner.
Dave Weiner - Founder and CEO of Priority Bikes increased conversion by 14% with FenixCommerce, the leading delivery intelligence platform.
After integrating FenixCommerce, Priority Bikes was able to provide accurate delivery options to their shoppers throughout the entire shopping journey and allowed them to take full advantage of their fulfillment and delivery capabilities.
In his interview, Dave said, “I nervously hit ‘launch’ on my first Kickstarter campaign for Priority Bicycles. My nervousness turned out to be unwarranted: within hours the campaign hit its initial goal, and by the time it was over, it had exceeded our goal almost 20-fold.
He added that it's a matter of setting expectations with customers during their shopping journey. The most unfortunate part is that retailers are doing a great job with their first online interaction, but fail to get the credit at the bottom of the funnel - when a customer actually browses the item and makes a purchase decision.
Consumers now expect faster and cheaper delivery, with more control over the experience. Effortless order tracking, timely notifications, seamless returns, and 24/7 customer care all play a key role in enhancing a customer’s experience. Leveraging our AI-powered platform can bring a lasting impact to your customer's experience. Our AI-powered delivery system not only saves time and labor costs, but also makes your processes far more effortless, transparent, agile, and efficient for your customer.
FenixCommerce, the leading AI-powered shipping, and delivery platform is helping retailers to improve their delivery timeline and provide a superior customer experience. Here are some of the benefits of AI-powered FenixCommerce that point to a great future for the on-demand delivery segment.
In addition, as a retailer, AI-based delivery options make your job even easier by providing a promotional opportunity to get the customer to do what you want them to do as cheaply as possible.
Thanks to the economic impact of COVID-19, businesses and consumers across the globe increasingly went online – according to UNCTAD global review report – raising the eCommerce share of global retail trade from 14% in 2019 to about 17% in 2020.
Even the 2021 data released by IBM highlighted that the pandemic has accelerated the shift toward eCommerce by roughly five years. With the acceleration of eCommerce, direct-to-consumer (DTC) business models are also gaining mainstream momentum.
As Amazon Prime Day is just around the corner, it’s a great opportunity for DTC brands to acquire new customers, which is vital for their growth. However, for brands to grow sustainably, it’s just not enough to acquire new customers through marketplaces.
According to Business Insider, 48% of eCommerce sales come from repeat customers who are twice as likely to make a purchase as first time buyers. Therefore brands need to have access to customer data to target repeat customers and maintain long-lasting customer relationships.
To make it a reality, smart DTC brands need to gear up to take back control and tap into their own channels to create compelling marketing experiences. Here are certain strategies that DTC brands need to adopt to make the most of this annual shopping extravaganza and drive some Prime Day traffic your way:
Amazon Prime Day debuted on July 15th, 2015 as a single-day event; but soon expanded in size and scope to become a marquee event to kick off a shopping spree during what is usually a summer season shopping lull. In 2021, Prime Day is slated to be held even earlier than usual: on June 21st and 22nd.
As shoppers will already be in a mood to purchase, it will be easy for you to drive traffic to your website, so long as you engage them proactively. Running personalized campaigns would certainly help to keep your products and deals on the top of their mind. You can also leverage your social media channels like Facebook, Instagram, etc. to drive sales.
There’s nothing more annoying than missing a sale for an inane reason, such as a product being out of stock. So be sure to forecast demand for your products, and ensure that you stock enough inventory to satiate the forecasted demand. Only promote such products that you know will be well-stocked.
It’s highly unlikely that a shopper who lands on a listing with incomplete product information and low-quality images will be converted into a buyer. So, ensure that your listings are up to par. Review and refresh your product listings.
Make sure that product titles, copy and descriptions are accurate, complete, and top-notch to clearly communicate the envisioned message to the consumers. High quality images can make the product more appealing to them. Adding interesting graphics and videos to the product listings is also a proven strategy to increase conversions.
Though many shoppers have been eagerly awaiting this season of sales, there will be quite a few who are averse to purchasing from big platforms like Amazon, to avoid any risk of getting poor-quality counterfeit products. This will prevent them from being able to cash in on the shopping bonanza like others. With a well-timed email or SMS notification, you can convert such shoppers into customers by offering unique, high-quality and limited-quantity products.
If your business focuses on local markets, this will be a good selling point to lure such shoppers who wish to spend their money on brands that contribute to the economic growth in their local markets. Leverage this opportunity to highlight your brand and convert such shoppers.
One of the common mistakes that brands make, after completion of Prime Day, is slowing down their marketing efforts. Nevertheless, it should be noted that even after the event is done and dusted, shoppers continue the shopping spree with high volumes, for at least two weeks afterwards.
Therefore, you should leverage this halo effect and promote flash sales or Missed Prime Day deals, etc. This will help your brand to re-engage with your new customers at scale for re-sell, cross-sell & up-sell opportunities; and to re-target lost customers. This will help you to bring those new and returning customers into the loyalty loop.
Getting ready to cash in on the biggest eCommerce events of the year with effective planning, is by itself half the battle. Additionally, DTC brands must be geared up to create a seamless customer experience throughout the customer’s journey from the website, to check-out, to the last-mile delivery. Brands who want to create their own “Amazon Prime-like” delivery experience can leverage our AI-Powered Shipping & Delivery platform. Drop us an email at firstname.lastname@example.org for an amazing order fulfillment experience.
FenixCommerce, the leading intelligent delivery platform, offers an Amazon-like shopping experience by providing accurate delivery dates & delivery options across the shopper’s purchase journey. By leveraging the data that already flows through your eCommerce platform, Fenix uses artificial intelligence and machine learning to calculate and display the most accurate, cost-optimized order cut-off and personalized delivery dates on the product, cart, and checkout pages. This allows eCommerce merchants to set clear expectations that improve the overall shopper experience. As a result, Fenix customers are seeing an average end-to-end conversion improvement that often exceeds 10%. How?
Many Retailers today still rely on a date range for standard ground shipping (you know, the old “get it in 5-7 business days” message) because they really don’t know exactly when orders leave their warehouses or will arrive at the customer’s door. So they provide ambiguous—and typically heavily padded—delivery timeframe estimates to be safe. And a lot can go wrong with this approach. As one of our clients, a $50M online retailer, told us “before Fenix, we knew that half of our deliveries arrive in less than 5 days, we just didn’t know which ones.” Now they do, and their conversion has increased 5% and AOV by 2.9%, as a result.
FenixCommerce is the only intelligent delivery platform to comprehend all of the data elements critical to the calculation of delivery dates, including inventory, product, operational, and carrier data all in real-time. The platform can even factor in data such as bad weather impacting carrier schedules or warehouse operations times.
What about improving the customer’s experience? From the moment a shopper lands on your product page, Fenix calculates and displays an accurate, personalized shipping date (not a range) and a dynamic order-by-time, optimized to criteria (e.g. cost, time, or both) you feel most important. At cart and checkout, Fenix can display multiple shipping options with exact dates, costs, and fully customizable messaging.
In a world where Amazon seemingly sets the standards for all things concerning eCommerce delivery, isn’t it time for merchants and DTC brands to provide their customers with a personalized, better delivery experience?
And what is it about fast delivery, anyway? When did we become so addicted to having things “right now!”? (That last question is perhaps better handled by anthropologists than eCommerce professionals.)
But in study after study, delivery issues rank among the top concerns with online shoppers. According to Metapack's State of eCommerce Delivery Report, 70% of shoppers are unlikely to return to a website after a poor delivery experience. So yes, delivery matters. I’d go so far as to say that most shoppers feel like the retailer has made them a promise the moment they submit their order—a promise that forms a key part of their experience with that brand. Such experiences can have a profound impact—positive or negative—on conversion.
Cart abandonment rates vary from an average of 69% to as high as 86% for mobile commerce and delivery issues are a leading reason for abandonment throughout the entire shopper’s journey.
To address shoppers’ frustration with poor delivery, Amazon offers Prime, spends billions on technology, and has built 100+ warehouses across the US, making it easier to provide accurate delivery promises—which often entail overnight arrival time frames. How can online merchants & DTC brands fight back? One straightforward way is to use FenixCommerce to calculate the most accurate delivery dates, using data you already have.
As you think about all the pieces impacting your customer’s experience with your brand, providing a personalized delivery experience is a key component. It’s a promise that you offer and one you can keep. This does more than just improve conversion: it reinforces your relevance to consumers as a brand they know and trust, helping you compete against Amazon and everyone else.