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Stellar Shipping Solidifies Customers

Posted on 11.26.2012

Although not always top of mind, logistics are among the most important aspects of e-commerce – especially during the holiday season.

In fact, a recent Voxware study reveals that late or inaccurate deliveries drastically impact consumers’ future decisions to shop with a retailer, with 29 percent of the study’s respondents stating that they will abandon shopping with a retailer if they receive an incorrect delivery. Furthermore, the study found that 68 percent of respondents say their expectations for correct and on-time delivery is higher during the holiday season.

“For a retailer to be successful, it is absolutely essential to get the right product to the right customer in a timely manner – delays and inaccuracies will have a disastrous impact on customer satisfaction, brand image, and bottom lines,” said Keith Phillips, President and CEO, Voxware. “With this survey, we wanted to better understand consumer expectations for correct and on-time deliveries. The results prove that with just one error or delay, many consumers will abandon shopping with that retailer not only online, but in-store as well. Efficiency and accuracy are more critical than ever as consumer expectations rise in parallel with their increase in online shopping.”

It is also important to note that the 43 percent of the survey respondents expect retailers who use standard shipping to deliver packages within 3-4 days, while 40 percent expect their packages to arrive in 5-6 days. And retailers who repeatedly don’t meet these expectations will undoubtedly lose customers, because 55 percent of respondents claim that they will abandon shopping with a retailer altogether after receiving a late delivery two to three times.

However, late deliveries are better than incorrect deliveries, because the study shows that 59 percent of respondents won’t shop with a retailer if they receive two to three incorrect deliveries. And with 30 percent of respondents stating that they intend to have more or significantly more holiday gifts delivered directly to them this year compared to last holiday season, it is more important than ever for merchants to ensure that their deliveries are efficient and correct.

“As the popularity of online shopping has exploded, retailers have not given enough attention to optimizing their supply chain for multi-channel distribution,” said Phillips. “Many still have an out-dated distribution center infrastructure in place and as a result, order fulfillment is often suboptimal. Most inefficiencies and errors occur in the distribution center at the moment of order selection, which has the largest impact on ensuring timely, accurate customer fulfillment. This is why voice technology can bring tremendous benefits to a retail organization. Because voice software lets retail warehouse workers remain hands-free, they can move more quickly, process more orders, and easily scale to address seasonal demands.”

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