Parcelhub, the leading provider of multi-carrier delivery management and proactive tracking support, has surveyed 100 UK B2B and B2C mid-market retailers to understand how they are responding to the demands customers place on them for flexible delivery options.
The key findings:
Delivery timescale: 68 per cent offer 48-hour delivery and 61 per cent offer next day delivery
Purchase return option: only 55 per cent offer returns as standard
Customer flexibility: 51 per cent offer leave parcel in a safe place; 31 per cent offer Collect+, only 25 per cent offer tailored delivery windows
Delivery management: 40 per cent use a third-party delivery company with 60 per cent working directly with carriers
Carrier choice: 37 per cent Royal Mail; 35 per cent Hermes; 22 per cent Parcelforce, 20 per cent DHL, 20 per cent DPD
Carrier satisfaction: 88 per cent are satisfied with carrier collections and 83 per cent with delivery service
Customer acquisition: 56 per cent offer free returns; 46 per cent offer free delivery; 31 per cent loyalty points; 22 per cent free international shipping; 12 per cent friend referrals; 13 per cent none
Delivery developments: 41 per cent will adopt a green focus; 35 per cent will offer additional delivery options; 29 per cent a returns solution; 27 per cent proactive tracking technology; 24 per cent introduce new delivery regions; 13 per cent outsourced fulfilment
Customer service: 69 per cent struggle to manage their customer service queries to the required level
Ticketing software: 51 per cent use ticketing software, of which 72 per cent measure the impact of failed deliveries to control costs and improve customer service and retention
Customer service investment: 39 per cent plan to expand internal customer service operations; 32 per cent invest in AI; 29 per cent in customer experience management; 24 per cent outsourcing customer service operations; 18 per cent none
International operations: 47 per cent deliver to both the UK and internationally
Challenges to international delivery: 33 per cent uncompetitive delivery costs; 19 per cent introducing new marketplaces as channels; 14 per cent overheads; 12 per cent language barriers
Marketplaces: 55 per cent use Amazon; 48 per cent eBay; 17 per cent own website
Item tracking: 90 per cent believe they have good parcel tracking visibility with 72 per cent considering outsourcing delivery tracking to a third party, with those who already use a carrier management company, 84 per cent are willing to outsource tracking to a third party
Order management: 29 per cent use a multi-channel order management system, of which 95% consider the process efficient
Commenting on the findings, Simon Wright Marketing Manager Parcelhub said:
“Our research shows that the delivery landscape is increasingly complex as consumers are becoming more sophisticated in their demands for flexible delivery services. Larger retailers have the size and scale to be able to adapt to these needs but smaller retailers do not have the critical mass to be able to directly manage these complex carrier relationships.
“At Parcelhub we are well placed to work with mid-market retailers who are looking to diversify their delivery capabilities yet want to do so within one carrier management system and outsource customer service. Our research shows this is exactly what mid-market retailers are looking for with 69 per cent struggling to manage their customer service queries and 84 per cent are willing to outsource the delivery tracking component of their customer service to a third party; this means our unique offering is really relevant and has broad appeal.”
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