E-commerce
Most big e-commerce retailers focused on 2-day delivery
June 28, 2023
In response to consumer expectations around fast and dependable delivery, a good majority, 72%, of large online retailers plan to invest in two-day delivery in the next two years.
In addition, more than half, 59%, are aiming to leverage faster delivery as a brand differentiating strategy.
Those are findings from an OnTrac study conducted by Hanover Research that polled 160 leaders at large retailers regarding current challenges and investment plans.
Additional insights, according to a press release, include:
- In the short-term, nearly two-thirds (60%) plan to offer two-day shipping as their standard delivery commitment during the 2023 peak season, up 11% from 2022.
- Eighty-nine percent of retailers are using alternative carriers: Initially fueled by the pandemic, retailers continue to rely heavily on alternative carriers, citing faster delivery (66%) and cost savings (36%) as the top reasons for using alternative carriers. The carrier diversity trend is expected to keep pace, with 53% of retailers indicating they will use alternative carriers in the next 12 months.
- Ninety-eight percent of retailers are already using buy online, pick up in-store and click-and-collect: Despite its growth, retailers are still grappling with significant challenges created by BOPIS. Retailers surveyed expressed numerous concerns largely stemming from the physical stores themselves, including operational and staff challenges (55%), fulfillment struggles due to high volume (51%) and lack of store availability (51%).
"As we move into the post-pandemic era, retailers must take proactive measures to meet consumer expectations and drive growth, or else lose business and fall behind," Josh Dinneen, chief commercial officer of OnTrac, said in the release. "This study provides actionable recommendations to help retailers build supply chains that create competitive advantage through faster home delivery, greater flexibility and cost savings."
