Pandemic causing ongoing delays to delivery services

According to a Manhattan Associates report, 76 per cent of Australian shoppers indicate the ongoing pandemic has delayed delivery of goods they have ordered online in the past three months.

The research reveals multiple shipments for a single order is an issue for 66 per cent of Australian consumers. These delays and disruptions are resulting in customer dissatisfaction.

Shoppers have stated their items have arrived in different deliveries although ordering their goods from one retailer, according to the report.

Despite this, 70 per cent of shoppers say they prefer to receive their purchases later if that means everything they have ordered arrives in a single delivery or shipment.

Raghav Sibal, Managing Director of ANZ Manhattan Associates says, “given the pressure that Australian retailers are under to meet customer demands in a challenging market, it is understandable that brands want to get their goods to customers as fast as possible.”

He says this is the case even if it means orders arrive in multiple shipments with “goods from one order coming in different deliveries on different dates.”

“However, new research shows that this approach is actually causing friction with the customer, many of whom would prefer options to receive their goods in one delivery,” Raghav says.

Forty-one per cent of shoppers indicated they waited on average more than a week between their first delivery and subsequent deliveries. This has led to them becoming confused and frustrated, with 63 per cent of shoppers contacting the retailer thinking there was a problem (such as their purchase not being accurately recorded) with their order.

“Such is the issue of online delivery delays and multiple shipments today that 75 per cent of shoppers said that the delivery reliability of a retailer would impact on their willingness to shop with them in the future.

“Not only is the issue of multiple shipments for a single order causing confusion and frustration amongst Australian shoppers and impacting on the reputation of the retail brand, it also comes at a real financial cost to retailers,” he adds.

“Every time an online order is split over two or three different shipments, there is extra cost to the business for handling, packaging, and transport, which can all add up at a time when many retailers are already under financial pressure.”

Retailers only contacted 50 per cent of customers when deliveries were delayed or notified the delivery would come over multiple shipments. Sixty-seven per cent of shoppers feel businesses could have communicated better with them about delivery delays.

“In a disrupted operating environment, retailers must not only improve their communication with customers, but they must also intelligently manage order fulfilment across their complete omnichannel network to minimise multiple-shipment issues and meet shopper expectations,” Raghav says.

“Retailers need to manage stock across distribution centres, stores, and transportation, along with optimising order-routing to reduce costs while ensuring customer promises are always kept.”

For more information on Manhattan Associates, click here.

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Pandemic causing ongoing delays to delivery services

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