Delivery will make or break many retailers over the next two years. While all ecommerce retailers offer delivery, consumers are demanding high speed, flexible, transparent and free delivery.

The three F’s are critical; fast, free and flexible. If retailers cannot offer this level of delivery service with transparency so that shoppers can track the progress of their delivery and the location and time it is going to arrive, then they are going to lose sales and disappoint their customers.

Shoppers are astute online and they take their time to research which products they buy and for what price. Competition is now so high that the new factor for decision-making is delivery. If retailers can win the war on delivery, they can win the sale and retain customers.

Here is an overview of the criticalities for retailers:

Consumer expectations

Shoppers want instant gratification.  With some brands already setting high standards, consumers expect fast, often same-day or next-day delivery. Retailers who can’t meet these expectations are likely to lose customers to competitors.

Shoppers also value the convenience of having products delivered to their doorstep. Retailers that offer seamless delivery options can attract and retain more customers. This includes not only fast and free delivery, but also flexible delivery. If a shopper has nominated a delivery point and needs to adjust it, retailers that are able to offer flexibility within the delivery journey are more likely to surprise and delight customers – meaning higher levels of customer retention.

Increased online shopping

The shift towards online shopping, accelerated by the COVID-19 pandemic, has made efficient delivery services more crucial than ever. Retailers must ensure their delivery systems can handle increased online orders

Retailers can’t afford fluctuations in sales volume to impact delivery times. Delivery times must meet a constant minimum level of service excellence.

Globalisation and ecommerce are allowing retailers to reach a global audience and they want minimum delivery guarantees as well. This is important for Australian retailers as effective international delivery can open up new markets and revenue streams. The ability to be ‘constantly excellent’ is imperative.

Competitive advantage

Retailers that offer superior delivery services can differentiate themselves from competitors. Features such as same-day delivery, easy returns, flexible delivery, free delivery and real-time tracking provide an important competitive edge.

Reliable and efficient delivery services build customer trust and loyalty, leading to repeat business and positive word-of-mouth. Shoppers want to be able to engage with their shopping journey to the point where they can see their package moving from one location to another along its delivery journey to the nominated doorstep. This adds to the experience and joy of shopping.

Cost management

Efficient delivery operations can help retailers manage costs better. Conversely, poor delivery systems can lead to high return rates, increased customer service costs and lost sales. Outsourcing logistics and delivery to a third-party provider can reduce these costs by up to 80%, which often means the difference between thriving and failing.

Retailers that optimise their delivery networks can achieve economies of scale, reducing per-unit delivery costs and improving profitability. This enables service excellence for a reduced cost which is a win-win for everyone.

Technological advancements

Technologies like drones, autonomous vehicles and advanced logistics software are transforming delivery. Retailers that leverage these innovations can enhance their delivery capabilities and stay ahead of the curve.

Using data analytics to optimise delivery routes and predict demand can improve efficiency and customer satisfaction. Partnering with a respected third-party logistics provider can deliver these benefits as organisations such as B dynamic Logistics invest heavily in technology to optimise operations, minimise the cost for retailers and achieve service excellence for retailer customers.

Sustainability

Consumers are increasingly concerned about the environmental impact of their purchases. Retailers that offer eco-friendly delivery options can appeal to this growing market segment.

Sustainable delivery practices can enhance a retailer’s brand image and align with corporate social responsibility goals.  Unfortunately, some retailers think they can get away with ‘greenwashing’ by making clever statements and creating clever marketing content. However, they are being found out and penalised by the ACCC.   

Third party logistics providers like B dynamic Logistics invest heavily in sustainable business practices. In fact, we have received industry awards for our commitment to sustainability. By utilising green delivery services, retailers can genuinely showcase their commitment to sustainability in a real and genuine way. 

Retailers who are able to meet the three F’s of delivery are likely to thrive, while those that fail to adapt may struggle to compete. The ability to deliver products efficiently and effectively is becoming a crucial determinant of retail success.

Mal Siriwardhane is CEO of B dynamic Logistics.