Nearly a third of Brits expect retailers and supermarkets to deliver their online shopping the same day, according to research from GBG, the experts in digital identity. The findings in the research report Fixing Failed Deliveries: Responding to the Rise, suggest that increasing consumer demand could lead to a rise in ‘rapid retail’ – where online shopping is delivered hours after the order is placed.
The research – commissioned by Loqate, a GBG solution, and conducted by Censuswide – reveals how the Covid-19 pandemic is continuing to shift customer expectations. The vast majority (72 per cent) of consumers admit to developing a greater dependence on online shopping since the start of the pandemic. Pre-pandemic, people completed around 5 (5.13) shops per month online, but this had risen to 6.35 trips per month between May and June this year – an eCommerce increase of 24 per cent. During the same period, in-store shopping decreased by 15per cent.
Online shopping may have increased but consumer expectations have increased in tandem, the research reveals.
When asked whether the choice of delivery slot and timescale would influence whether they shopped in-store or online, 39 per cent of people want next-day delivery, with 31 per cent demanding same-day delivery. Interestingly, leading retailers – including Tesco with its one-hour option, branded Whoosh – are beginning to experiment with rapid delivery, and the research suggests that this looks set to become a major battleground in the future.
Is the online surge here to stay?
Simply offering same-day delivery will not be enough to satisfy consumer demand, the research suggests, with potential issues caused by failed deliveries and delivery costs.
The survey of 1,029 UK consumers reveals that the average price Brits are willing to pay for online delivery is £3.30, although around one in seven (17 per cent) stated any delivery cost might be enough to drive them back in-store. Brands failing to deliver goods when promised is also a major concern, with half (51 per cent) of respondents hesitant to shop with that same retailer again and nearly a fifth (18 per cent) vowing never to return.
Two-thirds of respondents said their online goods delivery driver has trouble locating their delivery address at least some of the time. And more than one-in-ten (12 per cent) of respondents aged 25 to 34 claim it happens with every order they place online.
Matthew Furneaux, director, Location Intelligence at GBG, said: “We’re entering a new phase in the retail economy. eCommerce will continue to thrive and grow, but the success of retailers will depend, more than ever before, on delivering a great user experience and delivering goods quickly and efficiently. Consumers will no longer accept clunky websites or failed deliveries, in the world of rapid retail. The trouble for many retailers, however, is that they do not have the correct technology in place to verify the addresses of customers. This can cause delivery drivers to struggle to find an address and can even cause deliveries to be unfilled completely – a major problem when customers are increasingly demanding same-day delivery. If failed deliveries aren’t fixed, deliveries won’t be the only thing left unfulfilled. Customers will bear the brunt of late or lost packages, and their upset will undermine eCommerce companies at a time when they should be thriving.”
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