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Radial: Fulfillment Improvement Critical To E-Commerce Success

Omnichannel consultant and services provider Radial has conducted a study, “The Everyday Essentials of Successful E-commerce Fulfillment,” which highlights some dissatisfaction with delivery services.

The study, which involved more than 3,000 online shoppers in the U.S., United Kingdom and Canada, demonstrated that just under 40% of consumers report challenges receiving online orders and that related cost and speed issues were the biggest factors impacting satisfaction.

Millennials who grew up during the e-commerce age, were particularly critical about delivery satisfaction. The study recorded a significant disparity in satisfaction between 18 to 24 year olds and those individuals older than 55. Given the Millennial attitude, it will be important for e-commerce companies to analyze the expectations and prioritize the needs of younger shoppers as they seek to gain market share.

Radial pointed out other highlights of the study including:

  • In the U.S., 33.5% of 18 to 24 year olds reported frustration with the length of time it took to receive their online orders, while 20.6% indicated that high costs for priority delivery were not worth the convenience and 12.6% reported that their items had been stolen.
  • Respondents across all ages and regions, including 74.9% for the U.S., prefer that their packages arrive at their doorsteps versus allowing access to their home for delivery, locker pick up or relying on a nearby proxy signer.
  • In terms of communications, 44.1% of respondents in the U.S. expressed the need for proactive updates on the status of their orders throughout the shipping process.
  • An average of 36.8% of study respondents prefer retailers that ship goods in environmentally friendly packaging.
  • Only 8.7% of Americans said they would consider automated delivery if it was based on IoT tracking devices, but Millennials proved most willing to consider using emerging technology, at 35.2%.
  • Consumers in the U.K. were the most likely to say they picked up at least some of their online orders in stores, at 54%, followed by Canada, at 40.7%, and the U.S., at 37.7%.
  • The major reason consumers opted for in-store pickup was to avoid expensive shipping costs, 36.7%, followed by matters of convenience/delivery time, 29.8%.

“Fulfillment is one of the biggest elements impacting customer experience today but unfortunately many businesses still approach it as an afterthought,” said Sean McCartney, evp/operations services, Radial. “To execute a successful door-to-door strategy, companies must shift their mindset to be channel agnostic, offer seamless execution and real-time communication across any commerce medium. It is essential to create a solid foundation through an integrated e-commerce framework that taps resources like artificial intelligence and machine learning to optimize delivery processes and deliver savings straight to the consumer.”