SME retailers losing sales due to shipping options

A new survey has revealed that SME retailers are losing sales because customers are baulking at the cost and limited range of shipping options.

A new survey has revealed that SME retailers are losing sales because customers are baulking at the cost and limited range of shipping options.

The first annual report from logistics company Temando, which surveyed 1,000 consumers and 200 Australian SME retailers, detailed a gap in the delivery options provided by retailers and the expectations of their customers.

According to the survey, 85 per cent of shoppers expect to see multiple shipping options when they go to check out their purchase online.

However nearly three quarters (70 per cent) said they abandoned purchases because they felt the cost of shipping to be overly expensive, while 34 per cent had second thoughts about a purchase because free shipping was not offered at all.

It was also not the cost of delivery that was turning consumers off but also delivery convenience. Four out of five shoppers preferred a specified delivery time, yet only 31 per cent of retailers admitted to offering such a service.

“The gap between consumer expectation and retailer capability is growing. The future belongs to retailers who capitalise on this opportunity and use shipping and fulfilment as a retail weapon. Only half of retailers are offering the full range of services customers expect, which opens up a potentially huge competitive advantage,” said Carl Hartmann, CEO and co-founder of Temando.

“Convenience for the customer is key and businesses have the opportunity to re-imagine their supply chain and create meaningful, cost-effective customer experiences. Agile fulfilment remains a crucial challenge to overcome but with smart investments in technology, especially the automation of multiple shipping options, to help personalise the customer experience, many small and enterprise retailers can transform their business.”

Other findings of the survey included a lag between the proportion of retailers willing to use drones to deliver packages versus consumers willing to receive goods delivered by drone (31 per cent to 44 per cent), while just 21 per cent of retailers admitted to having a fully automated process for booking couriers.

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