Parcelhub, a multi-carrier delivery management and proactive tracking support provider, 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.
Flexible delivery options are ever changing for the better, with safe places, timed deliveries and notifications both the day before and on the day of delivery, but the challenge for many online retailers is how to provide this to customers. Marketplaces have their own solutions and many, for instance, make offering a nominated day delivery almost impossible. Even on your own website there may be a certain amount of integration needed to offer the service you might wish to offer.
What are your bug bears with being able to offer flexible delivery options – is it integration, service offered vs cost from your carriers, or something else?
Parcelhub flexible delivery options survey results
Delivery timescale
68% offer 48-hour delivery and 61% offer next day delivery
Purchase return option
Only 55% offer returns as standard
Customer flexibility
51% offer leave parcel in a safe place; 31% offer Collect+, only 25% offer tailored delivery windows
Delivery management
40% use a third-party delivery company with 60% working directly with carriers
Carrier choice
37% Royal Mail; 35% Hermes; 22% Parcelforce, 20% DHL, 20% DPD
Carrier satisfaction
88% are satisfied with carrier collections and 83% with delivery service
Customer acquisition
56% offer free returns; 46% offer free delivery; 31% loyalty points; 22% free international shipping; 12% friend referrals; 13% none
Delivery developments
41% will adopt a green focus; 35% will offer additional delivery options; 29% a returns solution; 27% proactive tracking technology; 24% introduce new delivery regions; 13% outsourced fulfilment
Customer service
69% struggle to manage their customer service queries to the required level
Ticketing software
51% use ticketing software, of which 72% measure the impact of failed deliveries to control costs and improve customer service and retention
Customer service investment
39% plan to expand internal customer service operations; 32% invest in AI; 29% in customer experience management; 24% outsourcing customer service operations; 18% none
International operations
47% deliver to both the UK and internationally
Challenges to international delivery
33% uncompetitive delivery costs; 19% introducing new marketplaces as channels; 14% overheads; 12% language barriers
Marketplaces
55% use Amazon; 48% eBay; 17% own website
Item tracking
90% believe they have good parcel tracking visibility with 72% considering outsourcing delivery tracking to a third party, with those who already use a carrier management company, 84% are willing to outsource tracking to a third party
Order management
29% use a multi-channel order management system, of which 95% consider the process efficient
“Our research shows that the delivery landscape is increasing in complexity 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% struggling to manage their customer service queries and 84% 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.”
– Simon Wright, Marketing Manager, Parcelhub
