Ware2Go Merchant Survey: The Delivery Experience Matters, Making Faster Shipping a Competitive Advantage
21 Octobre 2020 - 3:00PM
Business Wire
Research From the Leader in On-Demand
Fulfillment Reveals Quick Shipment Guarantees Are More Powerful
Than Discounts, Driving eCommerce Cart Conversions
Ware2Go, the UPS (NYSE:UPS) founded on-demand fulfillment
network and integrated tech platform enabling merchants of all
sizes to offer one-to-two-day shipping, today announced results of
a new merchant survey focused on customers’ shipping preferences,
as well as their fulfillment strategies to meet evolving customer
demands.
The Need to Ship Faster
According to merchants, customer behavior shows that faster
shipping is more effective in driving conversions than discounts,
with 65% of merchants reporting an increase in eCommerce cart
conversions of up to 25% when they offer a one-to-two-day delivery
promise. In fact, merchants said that the most impactful tactics to
drive cart conversions involved shipping promise:
- 56%, free shipping
- 52%, 1-2-day shipping
- 29%, free gift with purchase
- 26%, in-cart discount
A significant majority of merchants (75%) believe that offering
two-day shipping makes them more competitive, with 60% of those
polled currently offering one-or-two-day shipping guarantees.
What’s more, fast shipping inspires customer loyalty,
particularly during a time when 87% of consumers are shopping from
home due to the global coronavirus pandemic.
- 71% of merchants find that customers are willing to pay extra
for one-to-two-day shipping to receive their products sooner
- 59% say that offering two-day shipping guarantees brought more
repeat customers
- 39% say it gets them better online reviews
- 22% view fast shipping as a way to beat out their
competitors
These insights demonstrate that as customers do more shopping
from home, the delivery experience becomes increasingly important
and that businesses hoping to compete in the eCommerce space must
build a fulfillment strategy to meet growing customer
expectations.
Evolving Expectations Mean Evolving Operations
Fully one-third of merchants (33%) characterized themselves as
B2E, or “Business to Everyone,” vendors, signaling the continued
need for merchants to deliver effective service across multiple
channels, including LTL and FTL shipments to wholesalers and
retailers, as well as small parcel direct-to-consumer.
“Meeting consumer expectations for fast shipping requires
powerful behind-the-scenes operations, from supply chain to
last-mile delivery,” commented Ware2Go CEO Steve Denton. “Merchants
who optimize those operations through strategic partnerships are
poised for success in today’s eCommerce-driven, B2E economy. This
research validates the need for the type of flexible and scalable
infrastructure Ware2Go’s model affords its merchant partners.”
Managing Warehousing and Fulfillment Workflow
Operationally, merchants do face several key challenges, most
notably:
- Insufficient inventory management (33%)
- Incorrectly filled orders (31%)
- Slow delivery speeds (30%)
- Lack of labor availability (30%)
Some 50% of merchants currently insource their warehousing and
fulfillment and plan to continue doing so, while 32% say they both
insource and outsource. Merchants do see positives associated with
outsourced warehousing and fulfillment providers, characterizing
outsourcing’s key benefit as reduced operational pain points, at
44%. Of those merchants who do insource, 21% say they recognize
they should move their operations to an outsourced provider.
When it comes to barriers to adopting an outsourced warehousing
and fulfillment provider, 34% of merchants cite difficulty finding
vendors with the flexibility to meet their unique requirements. In
this shifting economic landscape, many merchants have seen their
customer base shift, requiring them to pivot to a new B2E model of
business. These merchants would benefit from partnering with an
integrated fulfillment provider with technological capabilities to
connect all of their sales channels to their fulfillment operations
in order to automate complex processes.
About the Survey
The survey was conducted in August 2020 by Propeller Insights on
behalf of Ware2Go. It polled some 250 merchants operating both
online and brick-and-mortar businesses, with revenues ranging from
$2 million to $200 million.
About Ware2Go
Ware2Go, a UPS Company, operates a turnkey nationwide
fulfillment network designed to help merchants easily position
products closer to end customers for a fast, inexpensive and
reliable order-to-delivery experience. Ware2Go offers an integrated
solution for storage, pick, pack, and shipping services to
businesses of all sizes through an intuitive cloud-based technology
platform that makes it easy to extend your distribution footprint
and scale up and down as your operational needs change. Ware2Go
simplifies nationwide fulfillment to help you meet your customers’
needs and expectations.
For more information about this press release, please contact
Gabrielle Jasinski at gabrielle@bospar.com.
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Gabrielle Jasinski gabrielle@bospar.com
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