Are budget delivery options a false economy for e-commerce companies

In the last few years, review portals have been flooded with customers complaining about poor delivery services. From packages left in bins to companies failing to attempt delivery at all, the stories are adding up. Poor delivery occurs for many reasons, but the primary reason is companies try to find ways to cut costs. However, these same companies soon realise the only cuts come in the form of fewer repeat customers.

Are budget delivery options a false economy for e-commerce companies2

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Everyone knows your name

We won’t mention them here, but several national and international delivery companies have become associated with bad delivery. In a survey conducted by distribution company Descartes, a fifth of respondents admitted closing the site at the delivery options page due to the named delivery service.

A Mintel Report replicated these finds, finding almost a third of potential customers changed their minds about ordering for fear that the product wouldn’t arrive, would be damaged or would require them to visit a third party location to retrieve the parcel. The customers who abandoned their shopping carts at the last hurdle were also much more likely to be high earners.

Next day delivery

While next day delivery was once an amazing feat of logistics, today it is the expected norm. Reading couriers such as provide this service as a matter of course because, for e-commerce companies, it is a must. However, the next day delivery option is only seen as a valid option once it is completed. If a package is returned to the depot because the recipient was not available to take delivery, the customer associates the issue with the e-commerce company and not the invisible delivery service.

 Are budget delivery options a false economy for e-commerce companies

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Success is appreciated

On the other hand, studies show, 75% of customers will order with the same company again as long as they are satisfied with the delivery service. This says a lot for Amazon’s market dominance. Delivery is key. In fact, many people who take to Amazon to leave a negative review, do so because they were unhappy with the delivery and not the product.

While many e-commerce companies claim that for financial reasons, next day delivery isn’t an option for them, it would be more accurate to say, for financial reasons, it is a must. The online giants have raised the delivery bar and this shows in their success.

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