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Online retail growth drives innovation in delivery modes

May 16, 2014 (Global)

The researchers at Hamburg-based secondary research organization yStats.com report in their new publication, “Global B2C E-Commerce Delivery 2014“, that demand by consumers for free and convenient delivery is driving online retailers and delivery service providers to look for a wider range of delivery methods.
 
Among the trends on the market are intensified competition for quick delivery, growth of the free delivery option, and a movement of some retailers to establish their own logistics and delivery services.
 
Since Amazon.com introduced same day delivery in the USA 2009, many E-Commerce players and multi-channel retailers have followed, such as Google Shopping, Nordstrom, eBay and Wal-Mart in the USA, online luxury retailer Net-a-Porter in the UK, online merchants Snapdeal in India and Jingdong in China. However, global surveys show that many online shoppers value free delivery over same-day delivery.
 
Shoppers also want other delivery options such as delivery at an appointed time, or pick-up in-store or at another arranged location.  Another trend is that retailers are developing and strengthening their own delivery networks, moving fulfillment centers closer to customers and increasing delivery from nearby stores rather than logistics centers where possible. By intensifying these activities, online and multi-channel merchants are entering the province of fulfillment companies and parcel carriers such as DHL, UPS, FedEx, DPD and others.
 
In the North American E-Commerce market, more merchants in the USA offer free and same-day delivery options, while the larger ones are developing their own delivery fleets. The same-day delivery became a trend among cross-channel and online merchants, even though less than 10% of shoppers say that same delivery is a top factor in shopping.
 
More than three quarters of online shoppers value free delivery more than same day delivery. Free or low cost shipping was the most important aspect of the online shopping experience for majority of online shoppers in Canada, also.
 
The B2C E-Commerce market in Latin America faces other issues. In Brazil, the major challenges are high consumer demand for free shipment and consumer frustration with delays in delivery. The postal system accounts for the largest share of the B2C E-Commerce delivery in Brazil. In Argentina, over half of online shoppers had their online purchases delivered to their homes in 2013, while a quarter picked them up in store.
 
Online shoppers in Mexico value free shipping, as more than half are ready to add items to the cart in order to qualify for free shipping, and online retailers who have offered free shipping promotions note significant increase in sales.
 
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yStats.com
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