The continued rise of online shopping has boosted ecommerce shipping alongside it. Just in the last decade, the industry saw 48% growth over two years and is projected to rise between 17% and 28% each year through 2021. This is not a surprise, as ecommerce itself is a $3.5 billion industry that is experiencing a major uptick in 2020 due to store closures amid the COVID-19 global pandemic.
As the growth continues and ecommerce becomes even more integrated into daily life, shipping professionals should stay up-to-date with the latest statistics so they can be better prepared for the future. Don’t ignore these statistics on ecommerce shipping; they’re priceless.
According to this report, that percentage is even higher for younger consumers. Half (50%) of those aged 18-25 receive at least one Amazon package per week, and it’s 57% of those aged 26-35.
Consumers don’t want surprise fees to appear in their shopping carts, and they include shipping costs in that category. They don’t assign value to shipping because they are not getting anything tangible by paying for it. This is easy for e-tailers to get around—simply build shipping costs into the price of the product or set a minimum spending threshold to access free shipping.
Specifically, 54% said it is their number one purchase driver. Because Gen Z has grown up in the age of instant gratification, it should come as no surprise that they value same-day shipping so highly.
Online retailers simply aren’t meeting the expectations of their customers. Only 15% of respondents said that e-tailers “always” offer shipping options that meet their delivery speed expectations. That number doubles when asked about Amazon, meaning even the ecommerce behemoth falls short.
It is safe to say that most shoppers want to be updated about their purchases, and this is easy to accomplish. Be transparent about any changes or shipping delays (due to coronavirus or otherwise) and provide tracking information so the customers can get an on-demand look at where their orders are.
Consumers want transparency when they’re shopping online. Even if the product in question is on backorder or will not be restocked for a long time, it is important to make that clear so shoppers can decide if they want to move ahead with their purchases.
According to a recent PayPal study, 43% of shoppers abandoned their carts because of high shipping charges. Again, they’re expecting free shipping and don’t want to see surprise fees in their carts right before clicking “Order Now.”
Online retailers are working to meet consumer expectations regarding communication about delivery expectations, package tracking and resolution of delivery options, which are all part of the post-purchase experience.
People are not pleased when unexpected obstacles appear, especially when they were promised a smooth process of placing an order and receiving the item(s) that were ordered. Package exceptions are shipments that have an impacted—typically delayed—delivery, and nearly all consumers expect retailers to resolve these exceptions while the packages are in transit.
Specifically, 38% of retailers have concerns about how quickly consumers expect orders to be delivered. Additionally, 36% are concerned about the expectations surrounding free and low-cost shipping.
Setting a spending threshold is a great way to keep total shipping costs low and increase your average order value. It also appeals to consumers, who, as it’s been established, want and expect free shipping. If they must spend more to access it, nearly one-quarter of them will.
The shipping, fulfillment and logistics landscape is becoming ever more complex and expensive for ecommerce sellers who are trying to manage it all on their own. Instead, leave it to the professionals so you can focus on other areas of your business.
Visible Supply Chain Management has thousands of satisfied customers and clients that rely on our company for their various shipping and logistics needs. We’re here to help you today. Contact us at 877.728.5328 to start the conversation about how we can help your company.