During periods of low demand, companies strive to find ways to incentivize consumer purchases. For online retailers, one of the many levers that can influence customer sales is everything related to shipping. It’s well-known that most consumers prefer to not pay for shipping on their orders. According to the Digital Commerce 360 study, 70% of respondents considered free shipping the primary factor influencing their purchasing decisions in e-commerce. However, it’s surprising that the second reason for choosing online shopping was delivery times, said by 43% of consumers.
Is delivery speed so crucial that it should be considered one of the conversion factors? A debate is emerging within the industry, as offering fast deliveries involves a logistical effort that comes with a cost, and this effort doesn’t necessarily align with the free shipping that major players in the sector maintain.
Currently, opinions are divided into two groups: those who argue that consumers demand fast deliveries and those who believe that this factor doesn’t significantly influence customer purchasing decisions. Who will be proven right?
I Want It Now
The model of fast deliveries has sparked competition among e-commerce platforms to see who can deliver the fastest. Amazon is a prime example of this model, having invested billions in implementing a regional fulfillment model to reduce distance and increase delivery speed. According to logistics consultant Nate Skiver, it took retailers 15 years to match the average two-day delivery offered by Amazon Prime.
However, even Amazon is refining its network, improving efficiency, and speeding up deliveries. Recently, it announced that this reduction in delivery times has resulted in its shipments going through 12% fewer touchpoints before being delivered.
Is Fast Delivery Really That Important?
In recent times, voices are emerging that consider delivery speed not as crucial as it is commonly perceived. At least not as much as free shipping, order status information, and delivery certainty. In other words, for the end customer, it is more important to be regularly informed about the delivery process and to feel confident that the order will be received on the promised date than it is about speed.
Customers value free shipping costs more than fast deliveries as long as they have the certainty of a specific delivery date.
Fast, Free, and Predictable
Perhaps it’s necessary to rethink what we consider fast deliveries. Do we need to have 1 or 2-day deliveries for all products? Such fast deliveries should be reserved for exceptional cases and products, with an appropriate cost attached.
The solution to this debate might come from offering a combination of fast, free, and predictable delivery. Achieving this is not simple, and, if poorly executed, can lead to increased costs. However, it should not be dismissed as a goal. Today, technology is available to efficiently provide such services without significant investments.
Logistics software like Deliverea allows you to achieve lower transportation costs without extending delivery times. Additionally, it provides the necessary tools, such as personalized shipping notifications, to keep customers informed about the delivery process in real-time. Therefore, there’s no need to aspire to even faster deliveries when competing with industry giants. What matters most is offering an efficient and well-crafted delivery process that considers the customer’s experience and is manageable for the company.
Whether you want to speed up your deliveries or create a more efficient logistics process, Deliverea offers multiple tools to assist you. If you need guidance:
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