Logistics as key marketing element in e-commerce

Logistics I have an e-shop

1

Someone buys

2

Need to ship this

3

Why do people buy online?

Offer: Not Availability off line (long tail)

Price

Convenience

Reasons to buy online

Convenience is the most important driver

56

52

52

47

42

37

36

34

32

23

23

11

2

1

Order 24 hours a day

Delivered at home

Easier, don't have to leave home

Lower prices than in regular shops

Opportunity to buy products that are not available in the regular shop

Less time-consuming

Greater choice

Easy to compare products

The speed of delivery

Ability to pick up goods at a convenient time and location

Ability to send products back

More environmentally friendly way of buying

Other

Don’t know

Base: Total sample (n=1321) Question: Q3.3 What are the most important benefits to you of online shopping compared to purchases in a regular shop? ABCD: 95% significance level

Convenience

Price

Long tail

The more they buy online

the more they value Convenience

Base: Total sample (n=1321) Question: Q3.3 What are the most important benefits to you of online shopping compared to purchases in a regular shop? ABCD: 95% significance level

Order 24 hours a day

Delivered at home

Easier, don't have to leave home

Lower prices than in regular shops

Opportunity to buy products that are not available in the regular shop

Less time-consuming

Greater choice

Easy to compare products

The speed of delivery

Ability to pick up goods at a convenient time and location

Ability to send products back

More environmentally friendly way of buying

Other

Don't know

47

50

44

38

34

31

24

27

29

21

18

9

1

1

53

52

49

46

39

34

34

31

29

22

23

8

2

1

62

54

57

51

47

41

43

39

35

24

25

13

2

1

LIGHT n= 271 (A)

MEDIUM n= 415 (B)

HEAVY n= 635 (C)

Base: Total sample (n=1321) Question: Q3.3 What are the most important benefits to you of online shopping compared to purchases in a regular shop? ABCD: 95% significance level

Order 24 hours a day

Delivered at home

Easier, don't have to leave home

Lower prices than in regular shops

Opportunity to buy products that are not available in the regular shop

Less time-consuming

Greater choice

Easy to compare products

The speed of delivery

Ability to pick up goods at a convenient time and location

Ability to send products back

More environmentally friendly way of buying

Other

Don't know

increases by age

57

46

52

46

46

37

39

38

29

22

22

9

1

2

58

51

53

46

43

38

37

36

31

28

21

11

2

1

56

53

52

50

41

40

40

37

33

25

22

14

2

1

18-34 Y n= 394 (A)

35-44Y n= 283 (B)

45-54 Y n= 304 (C)

53

61

50

45

37

32

30

26

35

18

26

10

1

0

55-70 Y n= 340 (D)

The importance of

Convenience

What is Convenience?

Convenience does NOT always mean quick delivery.

21%

79%

I want this article urgently, a fast delivery is important for me

Speed is not so

important,

I can wait

means being delivered

where and when the consumer wants

Convenience

Let the consumer choose

87

49

23

15

15

12

7

Home delivery

Pick up from a pickup point

Pick up from a post office

Pick up in the shops / web

shop Delivered to

another address specified

Delivery at work

Pick up from a pack machine

63

19

3

1

3

7

4

DELIVERY METHODS EVER USED

DELIVERY METHODS PREFERRED

What are the

preferred delivery methods

Delivery

Pickup

Base: Total sample (n=1321) Question: Q3.4 In which ways have you had your online purchases delivered?

Q3.5 If you could choose between all the following delivery options for shipping your online purchases, how would you prefer having your purchases delivered?

ABCD: 95% significance level

Avg. # of delivery methods used 2,1

is a key marketing element in e-commerce

Logistics

In one of the 1250 pick-up points, of which 80% is open on Sundays In one of the 150 parcel lockers available 24h/24 and 7d/7 At home or at the office

In your shop

4 ways for your customers to receive their parcels «wherever & whenever» they want

Delivery Methods

Home Work

Neighbour

Saturday Sunday

Evening Sameday

Post Point Parcel Locker Click & Collect

Pick up Methods

Post Office

The largest network: more than

1.250 pick-up points

Most important factor is distance between the pick-up point and their home or “on the way home-work”

(shops, pick up points, post offices, lockers) is good enough

Ensure the Pick up Network

Post Points Post Offices

Parcel Lockers

§  Located in high traffic zones §  Railway / Metro stations,

Supermarkets §  Petrol stations, … §  Easy-to-access §  Easy-to-park §  Accessible 24/7/365 §  Available for delivery & national drop

Parcel Lockers 150

Click & Collect Phygitalisation: Bring your e-consumers into your shop

Allow for online & offline interworking

Increase traffic in your Retail shop by delivering online orders to your shop

Is increasing in importance as marketing element in e-commerce

Logistics

bounce rate

Do you

convert 100% of your

visitors?

24

Lost sales …

Eliminate all the risks

How do you lower the risks

Offer all the shipping options

Brand of Transportation partner (logo = quality label)

Shipping Costs (free if possible)

Returns

Returns by purchased item

Clothing/shoes/access./jewellery/...

Books

Care products

CD/DVD/Blu-Ray/Games

PC/hardware/software/ink

Small household appliances

Electronic devices

Telecom products

Food

Pharmaceutical products

Toys

Animal products/accessories

Interior decoration

DIY and garden products

Sports products and apparel

Personalised photo products

Yes, already did

Yes, planning to No Dnk yet

Q1.2 Over welk(e) type(s) producten ging het? - Q1.15. Hebt u het/de bestelde product(en) uit het pakje teruggestuurd of bent u van plan dat te doen? Target: Received parcel < 7 days

15

7

8

14

10

8

10

5

5

7

9

3

11

2

15

3

6

7

9

14

13

20

13

5

10

9

6

4

6

7

4

3

77

83

82

68

75

70

75

88

83

80

82

92

77

89

80

94

2

3

2

4

2

2

2

2

2

3

3

2

5

2

1

n = 1166

n = 469

n = 369

n = 318

n = 224

n = 112

n = 169

n = 211

n = 146

n = 132

n = 112

n = 115

n = 117

n = 105

n = 103

n = 166

Make it

easier For your customer to

return Where? shops, home,

lockers

How? make labels

Free

Keep

the consumer “posted”

Online buyers expect information about their purchase

Base: Total sample (n=1321) Question: Q3.8 Which information do you wish to receive about your order and the monitoring of your delivery when you buy a product online? Please indicate to which extent you find it important to receive each of the following types of information. ABCD: 95% significance level

Desired information about order and delivery of online purchases

Confirmation of the order

Expected delivery time

When the product is available

When the product is shipped

Monitoring of the shipment

Estimated time of delivery after the shipment has left

Confirmation of the delivery

1

1

6

5

8

5

10

11

36

37

45

51

45

30

88

63

58

50

41

50

60

Unnecessary

Nice to have

Must have

Integration

Happy shopping ;-)

e-shop