How Retailers Can Stay Ahead of Consumer Expectations

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Exhibit 1 – Pre-Pandemic vs During Pandemic Percentage of Purchases Made Online Exhibit 2 – US E-Commerce Penetration Shipping Costs Remains Paramount Free or low-cost shipping remains the most important shipping consideration when shopping online. Delivery Satisfaction Has Decreased During the Pandemic Consumers are less satis�ed with their delivery experience during the pandemic citing late deliveries and slow delivery times as the main causes. Baby Boomers Are Adopting E-Commerce The coronavirus has forced consumers to adapt, and Baby Boomers are no di�erent. 47% of Boomers plan to increase their online shopping after the pandemic. The Continued Need For Speed Consumers want their merchandise to arrive faster, and GenZ and Millennial shoppers are willing to pay for expedited delivery options. Key Takeaways 0% 10% 20% 30% 40% 50% 60% 70% Pre-Pandemic During Pandemic 32% 58% Exhibit 3 – Likelihood to Shop at New Retailers During Pandemic Exhibit 5 – Reasons For Shipping Dissatisfaction During COVID-19 Deliveries arrived late Slow delivery time/ Lack of options Expensive shipping cost 32% 27% 19% Exhibit 6 – Reasons for Increasing Online Shopping After the Pandemic 80% 60% 40% 20% 100% 0% 46% 41% 36% 35% 32% 3% 6% I �nd it more convenient to shop online I �nd it is more time-saving to shop online Shopping online will still be a safer option for me / my family I have become used to shopping online My trust in shopping online has increased Other None of the above Exhibit 7 – Likelihood of Shopping at New Retailers by Generation & Shipping Preferences Free standard shipping Gen Z Millennial Gen X Baby Boomer or older Free return shipping Ability to track order in real-time In store pick up Ability to pick ideal shipping time on website Next day shipping (at an additional cost) Two-day shipping (at an additional cost) Same day shipping (at an additional cost) 58% 59% 57% 40% 46% 40% 39% 36% 71% 66% 62% 51% 44% 37% 37% 39% 74% 69% 62% 46% 44% 30% 30% 31% 83% 70% 63% 34% 29% 13% 13% 11% Exhibit 4 – Online Shipping Satisfaction 0% 20% 40% 60% 80% 100% Pre-Pandemic During Pandemic 80% 15% 5% 67% 20% 14% Neutral Satis�ed Dissatis�ed Free standard Shipping 73% 67% 61% 42% 40% 28% 28% 28% Free return Shipping Ability to track order in real-time In-store pick up Ability to pick ideal shipping time on website Next day shipping (at an additional cost) Two-day shipping (at an additional cost) Same day shipping (at an additional cost) Exhibit 8 – Percentage of Gen Z and Millennials Paying for Faster Delivery During COVID-19 Gen Z Millennials Next-Day Delivery 31% 39% 32% Two-Day Delivery Same Day Delivery Next-Day Delivery 26% 22% 21% Two-Day Delivery Same Day Delivery LaserShip 0% 5% 10% 15% 20% 25% 30% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 APR 2020 10 YEARS 8 WEEKS 5.6% 6.4% 7.2% 8.0% 8.8% 9.7% 10.7% 11.8% 13.2% 14.4% 16% 27% COVID-19 has dramatically accelerated e-commerce’s percentage of overall retail sales to 27% through April 2020. However, the pandemic has also exacerbated the decline of department stores and specialty retailers. Has the pandemic a�ected consumers’ shopping behaviors and expectations about the ecommerce delivery experience? LaserShip commissioned a study from Hanover Research to survey over 1,000 online shoppers in the US. 47% of Boomers plan to increase their online shopping after the pandemic. Acquire new customers by o�ering free shipping and returns Build loyalty and lifetime value with expedited delivery options Improve the delivery experience by diversifying your carrier mix Recommendations How Retailers Can Stay Ahead of Consumer Expectations After COVID-19 Paying for faster delivery is generational. 40% of Gen Z consumers and 37% of Millennials surveyed would increase their probability of shopping at a new retailer if they o�ered next day delivery service at an additional cost, a stark contrast to their parents and older generations. 73% of consumers are more likely to purchase from a new retailer that o�ers some type of free shipping while 28% are more likely to shop at new retailers with expedited same day, next day, or 2-day shipping and are willing to pay for it. How Retailers Can Respond to Changing Shopping Behaviors About the Author Josh Dinneen is the Senior Vice President of Commercial Development at LaserShip, the leader in last-mile delivery and largest regional ecommerce parcel carrier in the US, where he oversees revenue strategy, sales, marketing, account management, and call center operations. Josh has over 18 years of experience in the industry, and prior to his current role, he created LaserShip’s e-commerce hub and spoke delivery network as the Vice President of Supply Chain.

Transcript of How Retailers Can Stay Ahead of Consumer Expectations

Page 1: How Retailers Can Stay Ahead of Consumer Expectations

Exhibit 1 – Pre-Pandemic vs During Pandemic Percentage of Purchases Made Online

Exhibit 2 – US E-Commerce Penetration

Shipping Costs Remains ParamountFree or low-cost shipping remains the most important shipping consideration when shopping online.

Delivery Satisfaction Has Decreased During the PandemicConsumers are less satis�ed with their delivery experience during the pandemic citing late deliveries and slow delivery times as the main causes.

Baby Boomers Are Adopting E-CommerceThe coronavirus has forced consumers to adapt, and Baby Boomers are no di�erent. 47% of Boomers plan to increase their online shopping after the pandemic.

The Continued Need For SpeedConsumers want their merchandise to arrive faster, and GenZ and Millennial shoppers are willing to pay for expedited delivery options.

Key Takeaways

0%

10%

20%

30%

40%

50%

60%

70%

Pre-Pandemic During Pandemic

32%

58%

Exhibit 3 – Likelihood to Shop at New Retailers During Pandemic

Exhibit 5 – Reasons For Shipping Dissatisfaction During COVID-19

Deliveries arrived late

Slow delivery time/Lack of options

Expensive shipping cost

32%

27%

19%

Exhibit 6 – Reasons for Increasing Online Shopping After the Pandemic

80%60%40%20% 100%0%

46%

41%

36%

35%

32%

3%

6%

I �nd it more convenient to shop online

I �nd it is more time-saving to shop online

Shopping online will still be a safer option for me / my family

I have become used to shopping online

My trust in shopping online has increased

Other

None of the above

Exhibit 7 – Likelihood of Shopping at New Retailers by Generation & Shipping Preferences

Free standard shipping

Gen Z Millennial Gen X Baby Boomer or older

Free return shipping

Ability to track order in real-time

In store pick up

Ability to pick ideal shipping time on website

Next day shipping (at an additional cost)

Two-day shipping (at an additional cost)

Same day shipping (at an additional cost)

58%

59%

57%

40%

46%

40%

39%

36%

71%

66%

62%

51%

44%

37%

37%

39%

74%

69%

62%

46%

44%

30%

30%

31%

83%

70%

63%

34%

29%

13%

13%

11%

Exhibit 4 – Online Shipping Satisfaction

0%

20%

40%

60%

80%

100%

Pre-Pandemic During Pandemic

80%

15%

5%

67%

20%

14%

Neutral Satis�edDissatis�ed

Free standard Shipping 73%

67%

61%

42%

40%

28%

28%

28%

Free return Shipping

Ability to track order in real-time

In-store pick up

Ability to pick ideal shipping time on website

Next day shipping(at an additional cost)

Two-day shipping(at an additional cost)

Same day shipping(at an additional cost)

Exhibit 8 – Percentage of Gen Z and Millennials Paying for Faster Delivery During COVID-19

Gen Z Millennials

Next-Day Delivery 31%

39%

32%

Two-Day Delivery

Same Day Delivery

Next-Day Delivery 26%

22%

21%

Two-Day Delivery

Same Day Delivery

LaserShip

0%

5%

10%

15%

20%

25%

30%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 APR 2020

10 YEARS 8 WEEKS

5.6% 6.4% 7.2%8.0%

8.8%9.7%

10.7%11.8%

13.2%14.4%

16%

27%

COVID-19 has dramatically accelerated e-commerce’s percentage of overall retail sales to 27% through April 2020. However, the pandemic has also exacerbated the decline of department stores and specialty retailers.

Has the pandemic a�ected consumers’ shopping behaviors and expectations about the ecommerce delivery experience? LaserShip commissioned a study

from Hanover Research to survey over 1,000 online shoppers in the US.

47% of Boomers plan to increase their online shopping after the pandemic.

Acquire new customers by o�ering free shipping and returns

Build loyalty and lifetime value with expedited delivery options

Improve the delivery experience by diversifying your carrier mix

Recommendations

How Retailers Can Stay Ahead of Consumer Expectations After COVID-19

Paying for faster delivery is generational. 40% of Gen Z consumers and 37% of Millennials surveyed would increase their probability of shopping at a new retailer if they o�ered next day delivery service at an additional cost, a stark contrast to their parents and older generations.

73% of consumers are more likely to purchase from a new retailer that o�ers some type of free shipping while 28% are more likely to shop at new retailers with expedited same day, next day, or 2-day shipping and are willing to pay for it.

How Retailers Can Respond to Changing Shopping Behaviors

About the Author

Josh Dinneen is the Senior Vice President of Commercial Development at LaserShip, the leader in last-mile delivery and largest regional ecommerce parcel carrier in the US, where he oversees revenue strategy, sales, marketing, account management, and call center operations. Josh has over 18 years of experience in the industry, and prior to his current role, he created LaserShip’s e-commerce hub and spoke delivery network as the Vice President of Supply Chain.