05/02/2024
You're ordering pizza for dinner. Unless you're a foodie, you choose a place with a 30-min delivery over a popular pizza joint that opens tomorrow noon. Imagine if e-commerce deliveries worked just the same.
We're entering the delivery-first era of retail. Consumers want (ultra) convenient deliveries when shopping online — and they want them today. They are more and more likely to go for products with a fast and flexible delivery over brand identity and prices, just as they do with restaurant and grocery deliveries.
It's Amazon Prime's doing. Same-day delivery marketplaces for food and household goods followed suit in the heat of the pandemic. Consumers are getting used to shopping based on delivery because they want it to fit their lives no matter what they do and where they are.
These emerging delivery preferences are contextual and dynamic. Contextual because consumer lifestyle, location, timing, retail categories, product specifications, carrier performance and parallel order deliveries shape the context of each delivery choice at checkout. Dynamic because it happens one order at a time.
A new couch? Delivered at the house. An emergency pair of AirPods? Picked up at the electronics store. Cold and flu medicine? Delivered at an evening hour. New book releases and evening skincare? Picked up at a parcel locker. Wrong shoe size? Exchanged online easily. All of it is one person on different days.
Carriers are seeing this shift in shopping behavior, too. Having evolved from last-mile generalists into last-mile experts, they are capturing consumer demand for (ultra) convenience. That's how we've got quick commerce, 24/7 parcel lockers, electric cargo bikes for cities, co-delivery with food trucks and newspaper networks, and many more instances of better deliveries.
Retailers, on the other hand, are witnessing the impact consumer deliveries have on key e-commerce performance indicators, such as average order value (AOV), conversion rate, delivery revenue, delivery cost, net promoter score (NPS) and 'where's my order' (WISMO) tickets.
They are the ones yet to leverage the market opportunity and make the shift to 'delivery-first' across all stages of the shopping journey — from product discovery to exchanges and returns.
Responding to consumer expectations for delivery-first shopping requires significant changes in technology, processes and partnerships, but that's what the future customer journey and sustainable business growth will be driven by.