Temando – gap between delivery supply and demand

Parcel fulfilment and shipping software company Temando has released a the results of a UK Commerce Survey, showing a widening gap between supply of delivery and customer demand for faster, more flexible delivery models.

The 2016 State of Shipping In Commerce looked at over 200 UK micro, small, mid-sized and enterprise retailers, as well as 1000 consumers. It found some disconnects between what customers want and what suppliers are ready to offer.

One of the biggest gaps was on the subject of time-slot deliveries. The study showed that 86% of consumers have used or would like to use time-slot delivery options at checkout but only 38% of the companies surveyed have this option available.

78% of UK customers would like a same-day delivery option and only 47% would pay a premium for it, where 53% of retailers can currently offer this service.

Temando said, “Same day delivery options are still more popular than hyper local delivery in the UK, but the findings suggests retailers would be well advised to start including it as a premium option as 59% of customers would consider using it.”

With in-store collection options, 88% of customers would like to collect their goods from shops and ¼ will actually pay a premium for this. Only 55% of retailers offer the option.

Customers want to know about delivery and shipment costs upfront, something shown in nearly every e-commerce study that has been released to date. 2/5ths of customers abandon their carts because shipping costs were communicated too late in the purchasing process.

60% of customers highlighted shipping costs as a major reason for abandoning their shopping carts. Temando’s research showed that, “many are hampered in their desire to offer more flexible and affordable delivery options because of high courier rates, with almost a third citing this as a major problem”.

Commenting on the report, Carl Hartmann, CEO and co-founder of Temando, said: “Shipping and fulfilment are very complex and important processes that are traditionally viewed as a cost centre for many businesses.

“But with smart investments in software and hardware technology, especially the automation of multiple shipping options, many large and small retailers can transform shipping and fulfilment into a bonafide sales tool, a competitive advantage, and a key way to build customer loyalty.”