Retail supply chains are under greater pressure than ever before due to the ongoing impacts of COVID-19. 76% of Australian shoppers indicate that they have experienced unusual delays in receiving goods they ordered online in the last three months.
New research undertaken by Manhattan Associates has identified that a major source of customer dissatisfaction and delays in receiving goods today was multiple shipments for single orders. 66% of shoppers stated that when ordering online, items commonly arrived in separate deliveries – even though they ordered their goods all-in-one shop.
This is despite 70% of shoppers saying that they would prefer to receive goods at a later date if that meant everything they ordered arrived all in one delivery/shipment.
Given the pressure that Australian retailers are under to meet customer demands in a challenging market, it is understandable that brands want to get their goods to customers as fast as possible, even if this means that orders arrive in multiple shipments.
However, new research shows that this approach is actually causing friction with the customer, many of whom would prefer options to receive their goods in one delivery.
Alarmingly, 41% of shoppers indicated that they waited on average more than one week between their first delivery and subsequent other deliveries of goods from the one order.
This has led to confusion and frustration amongst consumers, with 63% of shoppers contacting the retailer thinking there was a problem (such as their purchase not being accurately recorded) with their order.
75% of shoppers said that the delivery reliability of a retailer would impact their willingness to shop with them in the future, indicating that the issue of online delivery delays and multiple shipments is significant.
The issue of multiple shipments for a single order is not only causing confusion and frustration amongst Australian shoppers and impacting the reputation of the retail brand, but it also comes at a real financial cost to retailers.
Every time an online order is split over two or three different shipments, there is an extra cost to the business for handling, packaging, and transport, which can all add up at a time when many retailers are already under financial pressure.
Only 50% of shoppers were contacted by the retailer when their delivery was delayed or notified that their delivery would come over multiple shipments. An overwhelming 67% feel that the business could have better managed the process around communicating likely delays in receiving goods.
In a disrupted operating environment, retailers must improve their communication with customers and intelligently manage order fulfilment across their complete omnichannel network to minimise multiple-shipment issues and meet shopper expectations.
Retailers need to manage stock across distribution centres, stores, and transportation and optimise order routing to reduce costs while ensuring customer promises are always kept.
Article by Manhattan Associates ANZ managing director, Raghav Sibal.