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Why delivery options can make or break a sale

Adam Zuchetti
Adam Zuchetti
26 July 2016 1 minute readShare
Woman signing for a parcel delivery

Taking an inflexible approach to your delivery options could be costing you business. Consider these options for improving your delivery service for your customers.

“It’s not a one-size-fits-all approach,” Australia Post’s Jonathan Gaynor told a gathering at the Online Retailing Expo.

According to Mr Gaynor, Australia’s online shopping penetration lags behind that of many other countries, meaning that the local market is ripe for change.

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A key part of being successful in this space, he said, is the delivery options you make available to your customers.

Why offer more delivery options? It gives customers more choice and flexibility; drives repeat sales; improves net promoter score; and reduces the cost of doing business.

 

“Australia Post research suggests 66 per cent of consumers have chosen one retailer over another because they provided more delivery options,” Mr Gaynor said.

Even more alarming for business owners is that 85 per cent of customers surveyed expect to see multiple delivery options offered, yet only half (54 per cent) of businesses actually do so.

Mr Gaynor said that having multiple, flexible delivery options not only increases choice for customers, but also drives repeat sales and improves your net promoter score.

He recommends examining these three delivery options to determine exactly what best suits the needs and desires of your customer base, as well as your own business:

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1. Awareness of cost-effective receiver-led models, which involve service registration for planned deliveries. Some can be carrier-agnostic, others are carrier-specific.
2. Merchant-led models provide seamless integration, by not sending the customer elsewhere mid-transaction to arrange delivery. However, using multiple carriers obviously increases complexity, especially for the business.
3. Carriers operate between the receiver and the merchant, developing solutions that answer the needs of both. These collaborative approaches generally require no service registration for buyers and impose no cost of integration to retailers, with lots of flexibility options. 

Why delivery options can make or break a sale
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Adam Zuchetti
Adam Zuchetti

Adam Zuchetti is the former editor of MyBusiness and a senior freelance media professional, specialising in the fields of business, personal finance and property. In 2020, he also embarked on his own business journey – inspired in part by the entrepreneurs and founders he had met through his journalistic work – with the launch of customised pet gifting and subscription service Paws N’ All.

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