Consumers want their deliveries to be free and fast
Consumers are becoming ever more demanding when it comes to getting their purchases delivered, with growing numbers demanding a service that is both free and fast.
According to a AlixPartners survey, the maximum delivery time the average shopper will accept has fallen to 4.5 days, down from 5.5 in 2012.
The finding underscores how strongly market leaders such as Amazon and Walmart influence shopper expectations, said the company.
AlixPartners said that to satisfy them, retailers are scrambling to expand their networks of warehouses and distribution centres with a focus on those near large population centres to facilitate rapid order fulfilment and delivery, relying on third-party carriers to handle the last leg of the delivery route.
In addition, the survey revealed that free shipping can make or break a retailer, with 96% of survey respondents saying that the availability of free shipping impacts their purchase decision, and 73% said that it has a great impact on their decision.
More than 70% of shoppers decide their shipping preference before checkout, and nearly 60% of shoppers browse for products based on their preferred shipping options.
About a quarter of shoppers (26%) will buy from a retailer that offers free shipping, even if they would pay a bit less to buy the same item from another retailer that imposes shipping charges.
AlixPartners said these findings strongly support the conclusion that delivery options, and specifically the availability of free shipping, drive online purchase behaviour.
But shoppers also expect their deliveries to be fast; figures show that the average consumer expects delivery within 4.5 days, and Amazon Prime members are even more demanding.
The 56% of survey respondents who have signed up for Amazon Prime expect their deliveries to arrive within 3.8 days— nearly a day less than non-Prime members will accept.
Demand for same-day delivery is increasing, but at 4.1% of online purchases (up from 2.7% in 2016), goods for same-day delivery still account for only a small share of total purchases.
DHL partners with Riversimple in sustainability move
Riversimple Movement, a Welsh hydrogen vehicle manufacturer, has found a new partner in the world's 11th largest employer: DHL Supply Chain. The two companies, who have recently signed an MoU, pledge to bring sustainable zero-emission vehicles to the UK, and their targets don’t stop there. The duo looks to be busy, with their sights set on developing sustainability initiatives, securing the necessary finances required to achieve the volume production of hydrogen vehicles, and designing and subsequent trialling of zero-emission transport.
DHL has already begun assisting its new partner in preparing for its first full-scale manufacturing facility, which will house the production of hydrogen-electric vehicles.
“It’s exciting to be partnering with a highly innovative company like Riversimple, which has sustainability at the heart of its mission,” says Managing Director of DHL Manufacturing Logistics UKI, Mike Bristow. “As the world’s leading logistics company, it is our responsibility to guide the industry to a sustainable future.”
DHL has recently launched “The Sustainability Playbook”, designed to create a roadmap to implement the next generation of global supply chain.
“Excellence. Simply delivered. In a sustainable way.”
As one of the leading drivers in global trade, DHL claims to be aware of its immense responsibility to steer innovation. Conscious of the impact their global operations have on the environment, the company initiated “Strategy 2025” - delivering excellence in the digital world. The goal: to focus increasingly on harnessing the potential for sustainable long-term growth and expanding the already-underway digital transformations within the business.
“Strategy 2025” aims to cumulatively invest €2bn in digitalisation through to 2025, in the hope that this will enhance customer experiences. They also predict a €1.5bn yearly run rate by FY’25.
Currently, DHL boasts a large green logistics portfolio, including carbon offsetting, green optimisation, and clean fuel and energy products, all as available ways to make the supply chain industry more sustainable.
“We have repeatedly redefined logistics, from introducing the industry’s first green product to becoming the first logistics company to commit to a zero-emissions target,” says DHL.
“In the past 15 years, we have continuously improved our carbon efficiency while introducing innovative green logistics solutions to make supply chains more sustainable and help our customers achieve their environmental goals.”
DHL move to lead supply chain sustainability
As the world’s 11th largest employer, and with around 570,000 employees worldwide, DHL is in a position to lead the supply chain towards a greener future. Its recent partnership with Riversimple hopes to inspire other companies within the industry to follow.
Hugo Spowers, Founder and Managing Director of Riversimple, acknowledges DHL’s commitment to sustainability.
“We’re very pleased to be collaborating with DHL to help us achieve mass production in the UK in the near term, and hopefully partner with us on a global level as we deliver our goal of systematically eliminating the environmental impact of personal transport.