DC Velocity - November 2016

Integration GBI Intralogistic Solutions 1143 West Newport Center Drive Deerfield Beach, FL 33442 USA www.gbisorters.com Tel: + 1 (954) 596-5001

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HALL: W2 / Stand: B3-2

New Expo. Center (SNIEC) - Pudong

Shanghai, China

01 -04 November, 2016

Online shoppers show strong preference for specific parcel carriers

In choosing a carrier to provide e-commerce services, many retailers select the least expensive. However, a recent study shows that online shoppers have strong preferences when it comes to delivery service providers.

When given a choice at checkout, more than a third of online shoppers prefer one parcel carrier over another, according to the study from OSM Worldwide, a residential package- and parcel-delivery provider based in Bensenville, Ill. According to the “State of Online Shopper Expectations and Actions” study, 31 percent of customers who have a preferred carrier would choose not to shop with a retailer because of its choice of shipping service provider. In contrast, just 6 percent of online shoppers without a preferred carrier would make the same choice.

Who are these prized carriers? The OSM study showed that 39 percent of respondents listed UPS as their top preferred carrier, leading 35 percent who picked the U.S. Postal Service (USPS) and 23 percent who opted for FedEx.

SPEED IS NOT ENOUGH

In a separate survey, a research firm found that retailers
need to go beyond fast shipping to provide improved track-
ing and visibility during fulfillment if they want to gain
repeat business from online customers.

The survey, conducted by third-party logistics service provider and e-commerce fulfillment specialist Dotcom Distribution, showed that next-day delivery is only a starting point. Consumers demand transparency throughout the parcel’s journey from DC to doorstep and expect it to be wrapped in premium packaging when it arrives, according to the survey.

Skip any of those steps and you risk losing business, the survey showed. Almost half ( 47 percent) of shoppers said they had chosen not to buy from a retailer again because of poor visibility into the status of their order during the fulfillment and delivery process. And 40 percent of shoppers say that looks matter: They would be somewhat more likely or much more likely to purchase from a retailer again if they ordered a package online and it came in a gift-like or premium package.