The drivers/demands/behaviours changing this area of retail
The past year has seen a significant drop in the number of Top500 retailers offering next-day delivery
Is it cost, driver shortage, consumer behaviour or other factors that have been driving that change? In this podcast, we discuss the economics of delivery – from fast to free, to VIP and green.
The current state
Customer choice has been the ruling factor of ecommerce delivery for many years. Retailers have offered different services, varying charges to customers, minimum order levels for free delivery and speed of delivery from a week to 10 minutes. In-flight changes, mobile notifications, timed deliveries, telematics and route optimisation have all increased efficiencies and reduced costs, while third party ‘faster’ delivery companies and ‘green’ options have sprung up to change consumer expectations again.
Implications
- Increased efficiencies, reduced mileage and cost savings through first time deliveries
- Customer retention increased from subscription services
- Increased customer choice and convenience
- Delivery no longer a loss leader
Discussion points in the podcast
What impact do subscription delivery services have on customer acquisition and retention?
Do customers really want everything in ten minutes? Or is it just millennials? Are these rapid delivery companies becoming retailers in their own right – who owns the customer relationship?
Will next-day delivery rise again or has Covid and the driver shortage killed it off?
How to differentiate with a personalised VIP service
Will consumers pay for ‘green’ deliveries?
Click here to listen on Apple Podcasts
Click here to listen on Spotify
Information:
Behind the microphones:
Mike Hancox, CEO Yodel:
https://www.linkedin.com/in/mike-hancox-b57a883/
Katie Searles, Editor of DeliveryX:
https://www.linkedin.com/in/katie-searles-522451132/
Chris Hoskin, Regional Director of Marketing, EMEA at Narvar:
https://www.linkedin.com/in/chrishoskin/
Ian Jindal, CEO RetailX:
https://www.linkedin.com/in/ianjindal/
