Consumer-centric delivery: The next frontier of retail success

Customer expectations and habits have never altered as dramatically as they have in recent years. Highstreets closed, shoppers flocked online, and networks were filled with an astonishing volume of deliveries. Commerce, once considered a "nice to have" has become critical. According to Australia Post data, Australians spent $63 billion online in 2023,  with one in seven households making weekly online purchases. While eCommerce experiences and online stores are now better than ever, the delivery experience often falls short of expectations. 

The delivery experience is becoming a crucial - but often overlooked - part of keeping dollars spent online. According to Shippit and Jarden research, nearly two thirds of Australian shoppers said that they would avoid purchasing from a brand again if they had experienced a subpar delivery. Their expectations are being driven by the growing influence of Amazon, which is setting a standard that is difficult to replicate. In fact, according to our research with Jarden, one in three consumers said that their expectations had been directly impacted by Amazon - along with Temu and Shein. 

For any business that sells goods online, a customer-centric delivery approach is crucial to maintaining relevance in 2024 and beyond. It should be treated not as the final stage of customer acquisition, but the first stage in retention. 

What are customers looking for?
As more and more Australians shop online regularly, their expectations increase. They know what they want from their delivery experience, and will be loyal to the brand that provides that. So what does the optimum delivery look like? Above all else, consumers prioritise a delivery experience that is reliable. That means a delivery that arrives when a retailer says it should. If a retailer can consistently fulfil deliveries quickly and reliably, they're likely to stick with that retailer at the expense of others. 

If you're buying a last minute gift for a celebration, you'll do so from the retailer who, based on past experiences, you can rely on to deliver when it said it would. That's how Amazon has managed to lock in the lifetime loyalty of consumers in markets like the US and UK - and what it's likely to do here. The need for better delivery experiences was also validated by our research with Jarden, which indicated that only price has a greater impact on the choice of where to shop - and only marginally - than delivery. 

Amazon is able to seamlessly integrate the entire process, from the moment a shopper views a product online to the delivery promises it provides at checkout right through to the technology its drivers use to complete that delivery. Our goal is to help retailers connect these formerly disparate, siloed systems into one integrated process, which enables retailers to match online demand to logistics capacity as efficiently and reliably as possible. The result is a delivery that delivers on the customer's expectations. 

Collaboration over competition
Against deeply resourced competitors, Australian retailers and logistics providers working together and forming partnerships isn't just a choice, it's essential. Collaboration benefits everyone involved, from retailers to carriers to customers, by establishing networks and focusing on partnerships, new avenues for growth open up. If every carrier identified an area to exploit, and invested its CAPEX into being the best courier in, for example, metro Sydney or regional Queensland, it builds unbelievable efficiencies through what is known as route density. A concept whereby a courier can complete as many deliveries as possible in the shortest time frame due to all packages being dropped off in the same area. 

"Co-opetition" as we have coined, is an approach that other industries use to good effect when it comes to building efficient asset heavy businesses. Take Qantas, for example, which is very strategic in servicing the routes where it can fill its planes, and tapping into partners for the legs where it cannot. Therefore, when networks collaborate, not compete, they're better positioned to provide the delivery experience that shoppers demand, and that helps the industry incentivise loyalty. 

Data ties everything together, providing the insights the entire supply chain needs to reduce waste and maximise efficiency. Tools like Shippit's Smart Routing and NowGo enable precise delivery coordination, minimising waste, cutting costs, and improving the overall customer journey. After all, if a retailer can deliver more parcels in the same time, it's better for their bottom line and their customer satisfaction. 

Never before have customers had higher expectations and lower tolerance than they do today. Retailers don't have unlimited chances to make a good impression. Delivery is the next frontier and is exerting greater influence over shopper loyalty than ever before. Consumers today demand quick, convenient and, above all, reliable delivery. By understanding their needs and wants, tapping into data and optimising the entire supply chain, you'll be well-placed to win their loyalty long-term.