Many SME retailers in the UK plan to offer additional delivery services, better returns solutions and more parcel tracking along with ‘green’ delivery options in future, according to a survey by multi-carrier delivery management Parcelhub.
These were some of the main findings of a survey of 100 British B2B and B2C mid-market retailers to understand how they are responding to the demands that customers place on them for flexible delivery options.
Asked about their future delivery developments, 41% of respondents said they will adopt a ‘green focus’, while 35% will offer additional delivery options. Another 29% want to work on returns solutions and 27% want to implement proactive tracking technology.
Additionally, 24% of the B2B and B2C retailers plan on introducing new delivery regions, with 13% wanting to push for the outsourcing of fulfilment in future.
In terms of delivery timescales, 68% of the interviewees provide 48-hour delivery, while 61% offer next day delivery. In contrast, only 55% allow returns of their products as standard.
Regarding customer flexibility, surprisingly, only 25% of the retailers offer tailored delivery windows. Another 51% offer the option of leaving parcels in a safe place and 31% provide parcel collection through the Collect+ network. Respondents that use third-party delivery companies amount to 40% while 60% work directly with carriers.
Their carrier of choice is predominantly Royal Mail with 37%. The second most used carrier is Hermes with 35%. Parcelforce follows with 22%, while 20% work with DPD or DHL. Carrier satisfaction is rather high, with 88% of the retailers satisfied with carrier collections and 83% pleased with the delivery service.
Roughly half of the retailers (46%) offer free delivery, while even more provide free returns options (56%). Providers of loyalty points programmes are 31% of the retailers. Only 22% provide free international shipping options.
In terms of international operations, only 47% of the UK retailers deliver both domestically and internationally, as international delivery is costly and complicated. Often international delivery costs are uncompetitive (33%) and 19% of the retailers struggle with introducing new marketplaces as channels. Additionally, 14% see obstacles in overheads and 12% find themselves confronted with language barriers.
As a whole, a large number of respondents use marketplaces such as Amazon (55%) and eBay (48%). Another 17% run their own websites.
Moreover, 69% of retailers struggle with managing their customer service queries to the required level. Ticketing software is used by 51%, of which 72% measure the impact of failed deliveries to control costs and improve customer service and retention.
In future, 39% plan to expand internal customer service operations, while 32% will invest in AI. In addition, 29% plan on expanding customer experience management and 24% want to outsource customer service operations. Only 18% plan on not investing into customer service investment.
In terms of parcel tracking, 90% believe they have good tracking visibility with 72% considering outsourcing delivery tracking to a third party. Amongst those who already use a carrier management company, 84% are willing to outsource tracking to a third party.
Lastly, 29% use a multi-channel order management system, of which 95% consider the process efficient.
Simon Wright, Marketing Manager at Parcelhub, commented on the findings: “Our research shows that the delivery landscape is increasing complex as consumers are becoming more sophisticated in their demands for flexible delivery services.
“Larger retailers have the size and scale to be able to adapt to these needs but smaller retailers do not have the critical mass to be able to directly manage these complex carrier relationships. At Parcelhub we are well placed to work with mid-market retailers who are looking to diversify their delivery capabilities yet want to do so within one carrier management system and outsource customer service.
“Our research shows this is exactly what mid-market retailers are looking for with 69% struggling to manage their customer service queries and 84% are willing to outsource the delivery tracking component of their customer service to a third party; this means our unique offering is really relevant and has broad appeal.”
