One of eCommerce’s biggest opportunities to improve profitability is better delivery management, according to a new report from nShift. The report shows how a typical European retailer could unlock more than €2 million a year by running deliveries more efficiently and improving the customer experience.
nShift’s report pinpoints the four most common sources of margin leaks and explains how the right delivery management platform can help stop them. Abandoned shopping carts, customer service time and resource requirements, returns processing and failed deliveries can erode more than 60 per cent of the profit margin on a typical online order. This margin leakage breaks down as follows:
- 24 per cent due to abandoned shopping carts for slow delivery
- 18 per cent on customer service and “where is my order” calls
- 12 per cent in returns processing
- 8 per cent because of failed deliveries
Done right, the delivery management platform can transform eCommerce performance, the report shows. This can include:
- Increases of up to 20 per cent in checkout conversion rates
- Improved warehouse picking efficiencies of up to 40 per cent
- Lower customer service costs for order tracking
- Reduced carrier costs from using the best carriers for each delivery
Jurgen Leijdekker, CEO of nShift, said: “Retailers scrutinise every penny they spend acquiring customers, yet many still accept avoidable losses throughout the delivery journey. Every abandoned basket, unnecessary support call and inefficient return quietly chips away at margins.
“Last-mile deliveries are the costliest part of the supply chain. With the right delivery management strategies in place, businesses can increase their profits, retain customers and accelerate growth.
“The ROI of delivery management” provides a clear roadmap for retailers to improve every stage of the delivery journey, including interactive tools and checklists. It shows how leading retailers are using deliveries to drive eCommerce success.”
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