E-commerce Delivery Compass - 2021/2022 The latest European insights to turn e-commerce logistics into your competitive advantage - Sendcloud
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2021/2022 E-commerce Delivery Compass — The latest European insights to turn e-commerce logistics into your competitive advantage
Introduction Introduction About the study Study design E-commerce is one of the fastest-growing and most Online retailers need to understand what consumers want Consumer characteristics important industries in the world. This was even before if they hope for success. While that seems simple enough, Key insights: expectation vs. reality the period of hyper-growth caused by the pandemic. This paying attention to all the latest shipping trends and knowing hyper-growth created a steep rise in parcel volumes. Which exactly what a consumer wants takes an extraordinary Study findings not only changed how delivery companies think about amount of time. Part 1: Checkout e-commerce logistics but also how European consumers Part 2: Shipping & Delivery view delivery in general. But, fear not. We’ve got your back. This report provides you Part 3: Tracking with in-depth insights into the expectations of European Part 4: Returns At a time when delivery companies are having to innovate consumers regarding shipping. We unravel the secrets of Part 5: Cross-border shipping their methods of shipment and distribution of parcels, e-commerce logistics and explore the differences between Part 6: The future of e-commerce online shoppers have acquired new behaviours and countries and even generations. new expectations. This gives independent retailers an Market guide & profiles opportunity like never before. The United Kingdom The Netherlands Let’s be honest. Logistics isn’t the most exciting part of an Belgium e-commerce business. However, it’s in the spotlight. Yes, Germany the pandemic brought unprecedented growth and a record Austria holiday season in terms of sales but there were also huge France disruptions and challenges to overcome. Spain Italy Conclusion Review Tips & Tricks About Sendcloud & Nielsen 2 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction Study design About the study Study design This report is the result of a cross-national study conducted In order to better compare the generations Consumer characteristics by Sendcloud in cooperation with Nielsen in May 2021. A total in the study findings, a division is made into Key insights: expectation vs. reality of 7,873 consumers contributed. From the United Kingdom the following age groups: Generation Z (18 to (1,003), Germany (1,002), the Netherlands (1,002), France 24 years old), Millennials (25 to 40 years old), Study findings (1,001), Italy (1,001), Belgium (1,001), Spain (1,000) and Austria Generation X (41 to 56 years old), and Baby Part 1: Checkout (863). boomers (57 to 65 years old). Part 2: Shipping & Delivery Part 3: Tracking All respondents are online shoppers who ordered at least The data has been collected through a 15-minute Part 4: Returns 1 product online in the past 3 months, are either male or online survey consisting of 42 questions and Part 5: Cross-border shipping female, and are aged 18 to 65 years old. The online purchase statements. The European data was weighted Part 6: The future of e-commerce of services such as tickets, digital downloads, and holidays based on population size per country to was excluded from the research. reflect the right proportion of European online Market guide & profiles The United Kingdom The Netherlands Sample sizes Age Gender Belgium Germany 18 - 29 16% 51% Austria France 30 - 39 21% 49% Spain Italy 1,003 1,002 1,002 1,001 40 - 49 20% Conclusion 50 - 59 26% Review Tips & Tricks 1,001 1,001 1,000 863 60 - 65 17% About Sendcloud & Nielsen Female Male 3 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction Consumer characteristics About the study Study design What are online shopping behaviours that are Where do you order online products? Consumer characteristics becoming the “new normal” after more than 1.5 Multiple responses allowed Key insights: expectation vs. reality years of a global pandemic? Let’s take a look at Europeans’ most preferred shopping channels, the Marketplaces 90% Study findings frequency of online purchases, the most frequently Website online retailer 68% Part 1: Checkout ordered product category and the average value Part 2: Shipping & Delivery spent for the last product purchased online. Social media 20% Part 3: Tracking European consumers shop online almost twice Part 4: Returns a month, most often on marketplaces such as Part 5: Cross-border shipping In which product category did you order Amazon and eBay, spending an average of €110.30, Part 6: The future of e-commerce most often in the past 12 months? mostly in the Fashion & Accessories category. Market guide & profiles Electronics 15% The United Kingdom On average, how often do you Fashion & Accessories 29% The Netherlands order products online? Belgium Food & Drinks 9% Germany Once a week or more 18% Health & Care 10% Austria France Once every 2 weeks 28% Home & Gardening 10% Spain Once every month 30% Pet supplies 4% Italy Once every 2 months 10% Sports 4% Conclusion Once every 3 months 6% Toys, Books & Games 12% Review Tips & Tricks Less often 7% Other 7% About Sendcloud & Nielsen 1.7 times per month on average 4 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction How much did you spend on the last product you ordered online? About the study Study design 0 to 10 euros 8% Consumer characteristics 11 to 50 euros 45% Key insights: expectation vs. reality 51 to 100 euros 25% Study findings 101 to 150 euros 8% Part 1: Checkout Part 2: Shipping & Delivery 151 to 200 euros 5% Part 3: Tracking 201 to 300 euros 3% Part 4: Returns Part 5: Cross-border shipping 301 to 400 euros 1% Part 6: The future of e-commerce 401 to 500 euros 1% Market guide & profiles 501 to 1000 euros 1% The United Kingdom More than 1000 euros 0% The Netherlands Belgium I don’t remember 2% Germany Austria €110.30 per product France Spain Italy Conclusion Review Tips & Tricks About Sendcloud & Nielsen 5 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction Key insights: expectations vs. reality About the study Study design Let’s have a look at the key insights of European consumer’s Free shipping: curse or blessing? Consumer characteristics needs and expectations when it comes to e-commerce Key insights: expectation vs. reality logistics. Plus, how the current behaviour of online retailers Consumers have been fortunate in recent years when it reveal the discrepancy between consumer’s expectations comes to shipping costs. For a long time, free shipping was Study findings and the reality of what retailers offer. the standard. However, more e-commerce giants are saying Part 1: Checkout goodbye to free shipping. Major names such as ASOS, Part 2: Shipping & Delivery Amazon and Zalando have all introduced a free shipping Part 3: Tracking In order to reveal the retailers’ reality, a survey threshold in recent years. But what do consumers think Part 4: Returns among online retailers that use Sendcloud has been about this? And how do online retailers respond? Part 5: Cross-border shipping conducted to show the other side of the coin. 1,723 Part 6: The future of e-commerce online retailers in the Netherlands, Belgium, Consumers’ expectations Germany, Austria, France, Italy, the United 68% abandons their shopping cart when confronted with Market guide & profiles Kingdom, and Spain have participated to shipping costs that are deemed too high during checkout. The United Kingdom get a better understanding of online While 40% is not willing to pay for shipping at all when the The Netherlands retailers throughout Europe. order value exceeds €150. Belgium Germany Retailers’ reality Austria France Only 23% of e-commerce stores generally offer free Spain shipping. With 7% only for certain products and 46% above a Italy certain order value. Introducing a threshold for the masses could provide a long-term solution for online retailers. Conclusion Review Tips & Tricks About Sendcloud & Nielsen 6 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction Expected delivery times Multi-carrier shipping and delivery flexibility About the study Due to the rise in parcel volumes, many consumers faced In the not-so-distant past, online retailers often settled for Study design delays during the pandemic. Delivery companies couldn’t one delivery company. However, we are increasingly seeing Consumer characteristics handle the parcel volumes which meant delivery times online stores offering a mix of delivery companies with Key insights: expectation vs. reality increased. How patient are consumers today? And how are different shipping methods. Zalando for example works delivery times communicated by online retailers? with Budbee for flexible delivery in addition to DHL and Study findings DPD. A multi-carrier strategy can help save costs, but more Part 1: Checkout Consumers’ expectations importantly, is a great way to boost conversions. Part 2: Shipping & Delivery Almost every second, a European consumer abandons their Part 3: Tracking Consumers’ expectations shopping cart when the estimated delivery time is unknown Part 4: Returns or too slow. If standard delivery is selected, consumers One of the reasons European consumers choose one online Part 5: Cross-border shipping expect to have their order delivered in about 3 days, while store over another is flexible delivery options (71%). The Part 6: The future of e-commerce the maximum amount of days they are willing to wait is most preferred options are standard home delivery (57%), close to 5. nominated day delivery (39%), and next day delivery (35%). Market guide & profiles The United Kingdom Retailers’ reality Retailers’ reality The Netherlands Belgium Only 20% says they provide information about the The top 3 most offered shipping methods by online retailers Germany expected delivery time during checkout. They mostly are standard home delivery (59%), service point delivery Austria communicate about it on product pages (36%). Shoppers (36%) and nominated day delivery (35%). Online retailers still France are patient with delivery times and value clear and have a lot of room for improvement, especially in the area of Spain transparent communication from retailers. Therefore it is flexible delivery options. Italy time to become proactive and be upfront about delivery expectations. Conclusion Review Tips & Tricks About Sendcloud & Nielsen 7 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction Track & Trace of shipments Handling of returns About the study Waiting ages for an order that ends up being delayed is How easily do consumers want to be able to return Study design fun for no one. With more consumers ordering online, it’s products? What is most important to them? And how do Consumer characteristics important to keep them informed about the shipping status. online retailers currently handle the return process? Key insights: expectation vs. reality You don’t want shoppers waiting for nothing. But how important is shipment tracking to the consumer really? Consumers’ expectations Study findings 52% of European consumers return a product if not satisfied. Part 1: Checkout Consumers’ expectations More than half always check the return policy before they Part 2: Shipping & Delivery 20% would not re-order at an online store at all if the decide to buy a product from an online store. Part 3: Tracking possibility to track the shipment is not available or limited. Part 4: Returns The majority (72%) expects to receive updates via email. Retailers’ reality Part 5: Cross-border shipping Part 6: The future of e-commerce An increasing number of online retailers offer digital return Retailers’ reality solutions, so consumers can arrange the return themselves. Market guide & profiles Only 16% of online retailers indicate that automated track Next to that, some create return labels manually when they The United Kingdom & trace notifications and a branded tracking page are very receive a return notification. And, although being one of The Netherlands important to them. The tracking part is still an underutilised the easiest consumer-friendly ways to offer returns, almost Belgium opportunity for online retailers to increase customer loyalty, none add a return label directly to the box when packing an Germany considering that tracking emails have a higher open rate order. Surprisingly, 3 out of 10 online retailers state that they Austria than any newsletter can ever achieve. hardly receive any returns at all. France Spain Italy Conclusion Review Tips & Tricks About Sendcloud & Nielsen 8 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction Green delivery and environmental impact About the study The member states of the European Union have agreed Study design in the Green Deal to reduce emissions by at least 55% Consumer characteristics by the end of 2030 compared to 1990. This also has an Key insights: expectation vs. reality impact on the field of e-commerce logistics. Therefore, you might wonder: how important is sustainable delivery for Study findings consumers? And are online retailers offering green delivery Part 1: Checkout options in their checkout? Part 2: Shipping & Delivery Part 3: Tracking Consumers’ expectations Part 4: Returns More than half of online shoppers say they are concerned Part 5: Cross-border shipping that the rise of e-commerce is a problem for the Part 6: The future of e-commerce environment and 52% claim to choose to purchase from one online store over another if its environmental impact of the Market guide & profiles delivery is lower. Nevertheless, the majority is not willing to The United Kingdom pay more for CO2-neutral delivery. The Netherlands Belgium Retailers’ reality Germany Austria Less than 1% is currently offering green delivery options France in their checkout. Potential explanations could be that the Spain environment is not yet a big concern for them. Or that Italy delivery companies do not offer additional green delivery services. So there are big wins still to achieve in terms of Conclusion environmental awareness in the world of e-commerce Review logistics. Tips & Tricks About Sendcloud & Nielsen 9 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Part 1 Checkout — The checkout process in e-commerce is one of the crucial success factors for online retailers. And yet, this is when many online stores lose a large number of their customers. There are plenty of shipping-related preferences, wants, and needs for a checkout that drives conversion.
Introduction High shipping costs still a deterrent About the study Study design Europeans are very price-sensitive customers when it Of all reasons stated below, choose the shipping- Consumer characteristics comes to online shopping - a nightmare for any online related reasons to stop purchasing a product that Key insights: expectation vs. reality retailer. This is largely due to how easy it is to compare was initially added to your shopping basket? multiple sellers in just a few clicks. It might not be a big Multiple responses allowed Study findings surprise that once again this year high shipping costs in the Part 1: Checkout checkout will scare off European consumers most. Part 2: Shipping & Delivery Stated shipping Part 3: Tracking It’s important to take into account that slow delivery, lack of costs are too high Part 4: Returns the preferred delivery methods, and a bad experience with Part 5: Cross-border shipping the delivery company offered also have a negative effect on Part 6: The future of e-commerce the e-commerce conversion rates. Estimated delivery 68% time is too slow Market guide & profiles The United Kingdom Past bad experience The Netherlands 44% with offered delivery Belgium 78% When comparing online shoppers company 68% Germany 58% per country, consumers from France are most prone to cancel an order Austria 20% France because of too high shipping costs Spain stated in the checkout, while Spanish Italy consumers bring up the rear for this. Less popular reasons: Conclusion 18% Preferred delivery method unavailable Review Tips & Tricks 11% Preferred delivery company not available 8% Green (CO2-neutral) delivery not available About Sendcloud & Nielsen 10% Other reason 12 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction Acceptable shipping costs depend on the order value About the study Study design Two-thirds of consumers abandon their shopping cart when Consumer characteristics confronted with shipping costs during checkout that are Key insights: expectation vs. reality deemed too high. But what exactly is “too high” and what is Study findings Part 1: Checkout When you spend 15, 50, or 150 euros on an order from your Surprisingly, the average shipping costs consumers Part 2: Shipping & Delivery country of residence, what are the maximum shipping are willing to pay decreased drastically compared to Part 3: Tracking costs you are willing to pay for next-day delivery? 2020 for all order values: Part 4: Returns Part 5: Cross-border shipping € 15 € 50 € 150 € 15 € 50 € 150 € 4.20 € 4.80 € 6.20 Part 6: The future of e-commerce € 3.40 € 4.10 € 5.20 Market guide & profiles Source: Sendcloud E-commerce Delivery Compass 2020/2021 The United Kingdom The maximum shipping costs that European consumers are The Netherlands willing to pay for next-day delivery depends on the amount Belgium of money spent on an order. The more expensive the order, Germany the more shoppers are willing to pay for delivery. Austria France In this context: Spain Italy 40% of online shoppers are not Conclusion willing to pay for shipping at all when Review the order value exceeds € 150 Tips & Tricks About Sendcloud & Nielsen 13 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction Home gardeners and sportspersons most generous When comparing individual product categories, two of About the study them stand out in particular and lift the general average Study design significantly: Sports and Home & Gardening. Consumer characteristics Key insights: expectation vs. reality Sports: Study findings € 15 € 50 € 150 It is noteworthy that especially in the Sports Part 1: Checkout € 3.40 € 4.90 € 6.80 category, the average shipping costs that online Part 2: Shipping & Delivery shoppers are willing to pay for an order value of €150 Part 3: Tracking is a whopping €6.80, €1.60 above the pan-European Part 4: Returns average and the highest among all product categories Home & Gardening: Part 5: Cross-border shipping and corresponding order values. Part 6: The future of e-commerce € 15 € 50 € 150 € 3.60 € 4.70 € 5.80 Market guide & profiles The United Kingdom The Netherlands Belgium Germany Austria France Spain Italy Conclusion Review Tips & Tricks About Sendcloud & Nielsen 14 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction The good news is that 69% of European online shoppers are likely to add another product to their shopping basket About the study to reach a free shipping threshold. Adding a free shipping Study design threshold is therefore key to shipping strategies in 2021 to Consumer characteristics increase both sales and conversions. Key insights: expectation vs. reality Study findings How likely are you to add another product to your shopping basket to reach a free shipping threshold? Part 1: Checkout On a scale from 1 ‘Very likely’ to 5 ‘Not likely at all’ Part 2: Shipping & Delivery Part 3: Tracking 24% 45% 18% 10% 3% Part 4: Returns Very likely Not likely at all Part 5: Cross-border shipping Part 6: The future of e-commerce Market guide & profiles The United Kingdom When comparing online shoppers per country, Spanish (73%) The Netherlands and Italian (78%) consumers are most likely to add another Belgium Germany product to their order to reach the free shipping threshold, while German (61%) and Dutch (60%) consumers bring up the 60% 69% 78% Austria rear for this. France Spain Italy Conclusion Review Tips & Tricks About Sendcloud & Nielsen 15 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction Is delivery running out of time? About the study Study design Almost one half of European consumers abandon their Dutch consumers have the highest expectations when it Consumer characteristics shopping cart when the estimated delivery time is unknown comes to the delivery time of their order, while shoppers Key insights: expectation vs. reality or too slow. But what exactly is “too slow”? from Austria are the most patient. Study findings If standard delivery is selected, European consumers expect When it comes to delivery times, the highest flexibility can Part 1: Checkout to have their order delivered in 3 days, while the maximum be found within the Fashion & Accessories, Toys & Part 2: Shipping & Delivery amount of days they’re willing to wait is close to 5 days. Books & Games and Home & Gardening categories. A Part 3: Tracking possible reason might be that these are not products that Part 4: Returns When an online store states Standard Shipping you need immediately, whereas this is different for Food Part 5: Cross-border shipping as their main delivery option, how long do & Drinks, for example, for which online shoppers are least Part 6: The future of e-commerce you consider this service to take? willing to wait. Market guide & profiles 1 day 4% The United Kingdom Average expected maximum delivery times 2 to 3 days 58% The Netherlands Belgium 4 to 5 days 33% Germany longer than 5 days 5% Austria France 4.2 4.7 5.3 Spain What is the maximum amount of days you want to days days days Italy wait for an online purchase to be delivered? Conclusion 1 day 2% Review 2 to 3 days 22% Tips & Tricks 4 to 5 days 32% 4.4 days 4.7 days 4.9 days About Sendcloud & Nielsen longer than 5 days 31% 16 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction High expectations for cut-off times About the study Study design As seen before, the expected time for standard delivery is What is the latest time you expect to be able to order to Consumer characteristics not as fast as consumers would like, but it does depend on still be eligible for next-day delivery and for same-day Key insights: expectation vs. reality how quickly their products are ready to go. So, what are the delivery? expectations for cut-off times when the delivery method Study findings offered is either next-day or even same-day delivery? 6% 10:00 Part 1: Checkout 32% Part 2: Shipping & Delivery Online retailers are continually prolonging their cut-off times Part 3: Tracking to increase their conversion rates, up to the point where it 17% 12:00 Part 4: Returns does not even seem to be a luxury anymore. Larger online 22% Part 5: Cross-border shipping stores offering next-day delivery is pretty standard these 17% 14:00 Part 6: The future of e-commerce days and even same-day delivery is getting increasingly 11% common in major metropolitan areas like London, Paris, and Market guide & profiles Berlin. 18% 16:00 The United Kingdom 8% The Netherlands 18% 18:00 Belgium 10% Germany Austria 15% 20:00 France 11% Spain 6% 22:00 Italy 6% Conclusion 3% Next day delivery 23:59 Review 0% Same day delivery Tips & Tricks About Sendcloud & Nielsen 17 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction On average, consumers in Europe believe that orders made just after 4pm should still be eligible for next-day delivery, About the study while for same-day delivery this is shortly before 2pm. Study design Consumer characteristics Key insights: expectation vs. reality Average expected cut-off times for next-day delivery Expectations vary greatly throughout Europe though. Study findings Expected ordering time for next-day delivery Part 1: Checkout is latest in the Netherlands with 7pm and Part 2: Shipping & Delivery earliest in France ( just before 3pm), while Part 3: Tracking the expected ordering time for same- Part 4: Returns day delivery is latest in Italy and Spain Part 5: Cross-border shipping (4pm) and earliest in France (12pm). Average expected cut-off times for same-day delivery Part 6: The future of e-commerce Market guide & profiles The United Kingdom The Netherlands Belgium Germany Austria France Spain Italy Conclusion Review Tips & Tricks About Sendcloud & Nielsen 18 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction Flexible delivery methods matter About the study Study design We have seen before that almost every fifth European What delivery methods would you like to choose from Consumer characteristics consumer (18%) abandons its shopping cart during the in a checkout when ordering products online? Key insights: expectation vs. reality checkout process when the preferred delivery method Multiple responses allowed is unavailable. Let’s take a look at European consumers’ Standard home delivery Study findings preferred delivery methods for online orders. Part 1: Checkout 57% Part 2: Shipping & Delivery Nominated day delivery Part 3: Tracking 39% Especially popular shipping options across Europe Part 4: Returns Next-day delivery Part 5: Cross-border shipping Standard home delivery in German and the UK Part 6: The future of e-commerce Next-day delivery in the Netherlands and UK 35% Mailbox delivery in the Netherlands Pick up at a local store Market guide & profiles Service point delivery in France 23% The United Kingdom Weekend delivery The Netherlands Belgium 22% Major differences between boomers and millennials Germany Same-day delivery or evening delivery Austria It is interesting to note that delivery method 19% France preferences vary greatly between generations, Service point delivery or CO2-neutral delivery Spain especially between boomers and millennials. While Italy two-third of Boomers prefer standard home 16% delivery, only 51% of Millennials do this too - as Mailbox delivery or parcel locker delivery Conclusion flexible delivery methods like weekend delivery, same- 15% Review day delivery and evening delivery are significantly Delivery on Sunday Tips & Tricks more popular among millennials than boomers. 14% About Sendcloud & Nielsen 19 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction The product category influences the preference Keep in mind... Interesting to note is that even if standard home delivery About the study is the most preferred delivery method across all product Using a single delivery method with high shipping Study design categories, there are delivery methods for certain product costs can be problematic. The only thing you could Consumer characteristics categories which are significantly higher preferred by “win” from this is basket abandonment. The solution is Key insights: expectation vs. reality European online shoppers. quite simple: offer different methods of delivering your products in order to keep up sales and develop them Study findings While weekend and evening delivery has a relatively high even further than they are now, It is not necessary for Part 1: Checkout share in the Fashion & Accessories and Food & Drinks every type of product or service that exists - the most Part 2: Shipping & Delivery category, parcel locker delivery has a significantly higher important part is adapting it to local preferences so Part 3: Tracking share of 21% within the Electronics category. customers get what best suits their needs as well as Part 4: Returns matching the types of items sold online. Part 5: Cross-border shipping Part 6: The future of e-commerce What delivery methods would you like to choose from Market guide & profiles in a checkout when ordering products online? The United Kingdom Multiple responses allowed The Netherlands Belgium Germany Standard home 56% 52% 61% 51% 59% 61% 63% delivery Austria Nominated day delivery 41% 38% 42% 31% 40% 40% 47% France Spain Next-day delivery 37% 38% 36% 32% 33% 35% 36% Italy Weekend delivery 24% 23% 25% 18% 20% 20% 22% Conclusion Evening delivery 21% 20% 25% 16% 13% 17% 18% Review Parcel locker delivery 14% 21% 13% 14% 14% 14% 14% Tips & Tricks About Sendcloud & Nielsen 20 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Part 2 Shipping & Delivery — Shipping can be a hassle for consumers. But it’s also an opportunity for your business to set itself apart. Every delivery company has its own strengths. Give online shoppers a choice of delivery flexibility with different delivery methods, prices and services so they have the perfect option according to their need or budget. Almost one in two European consumers have clear preferences when choosing a delivery company based on its services offered. Let’s dive into the factors that are important to take into account when it comes to shipping & delivery.
Introduction Turn delivery aspects to your competitive advantage About the study Study design As we now know, shipping is often a reason consumers Consumer characteristics leave the checkout. But what is most important when it When comparing online shoppers per country, Key insights: expectation vs. reality comes to product delivery? Assuming there are two online Italian and Spanish consumers most stores selling the exact same product for the same price, strongly agree with cost, speed of delivery Study findings the following delivery aspects are the ones that influence a and past delivery experience as the Part 1: Checkout European consumer’s purchase decision. main reasons for choosing a particular Part 2: Shipping & Delivery online store over another. Part 3: Tracking The main reasons are delivery costs (91%), speed of delivery Part 4: Returns (78%), and the delivery experience in the past (77%). Part 5: Cross-border shipping Part 6: The future of e-commerce Market guide & profiles How important are the following aspects to choose to purchase from one online store over another? The United Kingdom On a scale from 1 ‘Very important’ to 5 ‘Not important at all’ The Netherlands Belgium Costs of delivery 56% 34% 9% Germany Austria Speed of delivery 31% 47% 18% 3 France Spain Delivery experience in the past 29% 48% 19% 3 Italy Flexibility in delivery options 25% 46% 22% 5% 2 Conclusion Review Flexibility to change delivery timeslot 19% 38% 28% 11% 4% Tips & Tricks Environmental impact of delivery 16% 36% 33% 8% 7% About Sendcloud & Nielsen Flexibility to change delivery address 18% 33% 28% 14% 7% Very important Not important at all 22 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction Speed of delivery as a premium service About the study Study design European consumers mention speed of delivery as one of Consumer characteristics the most important factors when shopping online. But to Rrrrrápido! Key insights: expectation vs. reality what extent do these preferences exist and what exactly Of all countries surveyed, it is Spanish matters when it comes to speed of delivery? consumers who generally consider Study findings delivery times to be the most Part 1: Checkout Across all countries, the ability to choose the time frame of important factor. Part 2: Shipping & Delivery delivery (76%) is considered most relevant. While changing Part 3: Tracking the delivery time when the parcel is already on its way (57%) Part 4: Returns is of least importance. Part 5: Cross-border shipping Millennials are most demanding when Part 6: The future of e-commerce it comes to premium service To what extent do you agree with the following statements? One generation in particular stands out when it comes Market guide & profiles On a scale from 1 ‘Completely agree’ to 5 ‘Completely disagree’ to premium services: millennials. 66% of Millennials The United Kingdom want to be able to change the delivery time when the The Netherlands I want to be able to select a time frame for my delivery package is already on its way, and 59% want to have Belgium 30% 46% 18% 4 the flexibility to change the delivery address - even Germany after the product has been shipped. Millennials also Austria I want to be able to choose the prefer to have their delivery status at their fingertips: France exact day of my delivery 72% would like to manage all incoming orders through Spain an app, while only 45% of Boomers have a need for Italy 29% 42% 22% 5 this. Conclusion I want to be able to change the delivery time Review of my parcel when it’s already on its way Tips & Tricks 19% 38% 27% 12% 4 About Sendcloud & Nielsen Completely agree Completely disagree 23 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction Preference for delivery companies About the study Study design Does it matter to European online shoppers which company How strong is your preference for a specific Consumer characteristics delivers their order? For most it doesn’t, but 40% do have delivery company to deliver your product? Key insights: expectation vs. reality a preference when it comes to the delivery company. In 2020, for almost half of European online shoppers (47%), 11% 29% 42% 10% 8% Study findings the delivery companies offered by an online store had an Very strong Not strong at all Part 1: Checkout influence on the purchase decision. Part 2: Shipping & Delivery Part 3: Tracking It’s interesting to note that with a share of 46%, consumers Part 4: Returns who mainly order in the Electronics category show Part 5: Cross-border shipping a significantly higher preference for a specific delivery Part 6: The future of e-commerce company. One possible reason for this could be the higher 51% 40% 32% order values spent for electronics with an average amount Market guide & profiles of €154 on the last product (compared to the pan-European The United Kingdom average amount of €110.30 spent on the last product). The Netherlands Belgium Other countries, other customs - that also goes for Germany preferences for delivery companies. While the Austria Generation Z and millennials are preference for a specific delivery company France the pickiest consumers is the lowest in France, Spanish shoppers Spain While 46% of Generation Z and 50% of Millennials have the highest preference for a Italy have a preference when it comes to the delivery delivery company. company, only 30% of Boomers are influenced by Conclusion the delivery companies offered. Review Tips & Tricks About Sendcloud & Nielsen 24 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction Most preferred delivery companies throughout Europe 4 out of 10 European consumers have a strong preference About the study for a specific delivery company. When shoppers have to Study design choose one favourite delivery company, they prefer their Consumer characteristics parcels to be delivered by their national postal service. Key insights: expectation vs. reality Interesting to note is that subsidiaries of DPD are among the Study findings top 3 preferred delivery companies in the Netherlands, the Part 1: Checkout United Kingdom and Austria. Part 2: Shipping & Delivery Part 3: Tracking Part 4: Returns Part 5: Cross-border shipping Part 6: The future of e-commerce Market guide & profiles The United Kingdom The Netherlands Belgium Germany Austria France Spain Italy Conclusion Review Tips & Tricks About Sendcloud & Nielsen Preferred delivery companies throughout Europe 25 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction Delivery companies have the greater responsibility It’s no surprise that European consumers favour certain Country-specific preferences can also be seen in this About the study delivery companies. In the context of lost or damaged point. German consumers assign significantly higher Study design packages, half of European online shoppers blame responsibility to the delivery company, while British Consumer characteristics both the online shop and the delivery company. When consumers blame the delivery company only slightly Key insights: expectation vs. reality viewed separately, delivery companies bear the greater more. responsibility for a quarter of consumers. Study findings Part 1: Checkout Part 2: Shipping & Delivery Imagine you order a product online and the package is Part 3: Tracking damaged or you did not receive the package at all. Who Part 4: Returns do you believe should take responsibility for that? Carrier Who is more responsible? Shop Part 5: Cross-border shipping 1. Both the online shop and the delivery company Part 6: The future of e-commerce 50% Market guide & profiles 2. The delivery company The United Kingdom 25% The Netherlands 3. The online shop Belgium Germany 23% Austria France Spain Italy Conclusion Review Tips & Tricks About Sendcloud & Nielsen 26 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Part 3 Tracking — It’s clear that consumers want to know where their order is once it’s been processed. This provides opportunities for online retailers to increase customer satisfaction and repeat purchases by being proactive with communications during all stages of an order’s progress. From processing through delivery in a creative way while keeping a realistic outlook on how long delivery may take for each delivery company (and incorporating limitations). What do most consumers want when it comes to communicating about the status of their order? Let’s find out!
Introduction Tracking influences repeat purchase decision About the study Study design A bad experience with the delivery company is one of the Consumer characteristics main reasons for European consumers to choose one online While for 29% of German consumers and for 24% Key insights: expectation vs. reality store over another. The ability to track shipment plays a of French consumers shipment tracking is a major role here. One-fifth of European consumers would not must-have to re-order at an online-store, Study findings re-order at an online store at all if the possibility to track the Spanish (14%) and British consumers Part 1: Checkout shipment is not available or limited. (11%) significantly bring up the rear here. Part 2: Shipping & Delivery Part 3: Tracking Interesting to note is that these consumers would only Part 4: Returns re-order at an online store with limited tracking if it offers Top 5 product categories where European consumers Part 5: Cross-border shipping unique products or better prices than its competitors. Once see shipment tracking as a must-have to re-order Part 6: The future of e-commerce again, price is the most important factor when it comes to In descending order decision making. Market guide & profiles Pet supplies The United Kingdom The Netherlands Would you re-order at an online store if the possibility Fashion & Accessories Belgium to track the shipment is not available/limited? Germany Austria Yes I would, I don’t care much about tracking my shipment Health & Care France 19% Spain Yes I would, if the store offers unique products Electronics Italy 28% Conclusion Yes I would, if the store offers better prices than its competitors Home & Gardening Review 32% Tips & Tricks No I wouldn’t, being able to track my shipments is important to me About Sendcloud & Nielsen 20% 28 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction The right message through the right channel About the study Study design Tracking updates are an important part of the customer How do you want to receive updates Consumer characteristics experience, so it is no surprise that European consumers about the status of your order? Key insights: expectation vs. reality like being updated about the delivery status of their orders. Multiple responses allowed There is still much to gain for online retailers in this area 1. Email Study findings as tracking updates are often being very standard and Part 1: Checkout impersonal nowadays. This is a shame as this is exactly 72% Part 2: Shipping & Delivery when consumers are most engaged with their orders! 2. SMS Part 3: Tracking 44% Part 4: Returns Most preferred communication channels 3. WhatsApp Part 5: Cross-border shipping European consumers expect to receive tracking updates 21% Part 6: The future of e-commerce mainly via email (72%). SMS (44%) is a good second service 4. Carrier tracking app to offer, followed by carrier tracking apps (28%) and Market guide & profiles 28% WhatsApp (21%). The United Kingdom 5. Facebook Messenger The Netherlands Belgium 5% Germany 6. Telegram When comparing online shoppers per country, email Austria 3% as the tracking channel has the highest share for France consumers from Germany (79%) and from the Spain Netherlands (79%). SMS plays a relatively Italy important role for 71% of French consumers, while WhatsApp is significantly more Conclusion relevant for 41% of Spanish and 37% of Review Italian consumers. Tips & Tricks About Sendcloud & Nielsen 29 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction Increasing interest in tracking apps 28% of all European consumers want to receive updates About the study about the status of their order via a tracking app from the Study design carrier. This has slightly increased compared to 2020 (24%). Consumer characteristics Key insights: expectation vs. reality Overall, a growing interest in tracking apps can be seen. 60% of European online shoppers say that they’d be interested in The greatest interest in single tracking Study findings using a single app on their smartphone to keep track of all applications is in Italy (68%), followed by Spain Part 1: Checkout their parcels from different delivery companies. (68%), Belgium (65%) and the United Part 2: Shipping & Delivery Kingdom (63%). Part 3: Tracking Part 4: Returns Part 5: Cross-border shipping Part 6: The future of e-commerce How interested would you be in using a single app on your smartphone to keep track of all your parcels from different delivery companies? On a scale from 1 ‘Very interested’ to 5 ‘Not interested at all’ Market guide & profiles The United Kingdom 22% 38% 20% 11% 9% The Netherlands Belgium Very interested Not interested at all Germany Austria France Spain Italy Conclusion Review Tips & Tricks About Sendcloud & Nielsen 30 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Part 4 Returns — Returns are always a hassle. Whether they cost you time or money, the result is usually less-than-ideal for both online retailers and customers alike! But what about return policies? Is it worth making your policy more lenient to avoid losing potential sales from people returning goods that do not fit them right away? It pays off in one way: repeat purchases! Can your return policy really make a difference when it comes to conversion and repeat purchases? We’ve got the answers.
Introduction Europeans love to return About the study Study design If you want to make the process of returns as simple and Consumer characteristics efficient as possible, it is important that one thing remains It all depends on the assortment Key insights: expectation vs. reality certain: returns are inevitable. The current state of returns shows that over half of European online shoppers typically On average, the share of European consumers who Study findings return a product if they are not satisfied. Almost a third only typically return products when not satisfied is 52%. Part 1: Checkout return sometimes and 16% do not return a product at all But, there are major differences between the product Part 2: Shipping & Delivery when dissatisfied. ranges. In the Fashion & Accessories category, the Part 3: Tracking average return rate is significantly higher than the Part 4: Returns Do you typically return a product when you are overall rate, while European online shoppers typically Part 5: Cross-border shipping not satisfied with the product (quality)? return the least in Toys & Books & Games and Part 6: The future of e-commerce Food & Drinks categories. 52% 32% 16% Market guide & profiles Yes, I typically return products Sometimes No The United Kingdom The Netherlands 58% 56% 55% 53% Belgium Germany Austria France Spain 51% 48% 47% 43% Italy Conclusion Review Tips & Tricks About Sendcloud & Nielsen 32 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction No surprise: Returns continue to be a big hassle for all parties About the study Study design As we have seen before, almost a third of European Consumer characteristics consumers only sometimes return a product and 16% do Key insights: expectation vs. reality not return a product at all when dissatisfied. The most A relatively high share of German frequently cited reasons are that returns are too much of a shoppers (65%) typically return Study findings hassle and the cost of returning is out of proportion to the a product if not satisfied. If not Part 1: Checkout Part 2: Shipping & Delivery value of the product. 65% returning, the reasons are: a big hassle (47%) and returning is more Part 3: Tracking Why don’t you return your products? expensive than keeping the product Part 4: Returns Multiple responses allowed (38%). Part 5: Cross-border shipping 1. Returning is a big hassle to me Part 6: The future of e-commerce 48% About 4 out of 10 French shoppers (relatively lower share with 43%) Market guide & profiles 2. Returning the product is more expensive than keeping it typically return a product if not 43% The United Kingdom 44% satisfied. If not returning, the main The Netherlands 3. There is no possibility to return reason is that returning is more Belgium 12% expensive than keeping the product Germany (highest share in Europe). Austria 4. I tend to forget to return my product in time France 10% Spain About half of Spanish shoppers Other or unknown reason Italy typically return a product if not 21% satisfied. If not returning, the reasons Conclusion Review 49% are: a big hassle (51%) and returning is more expensive than keeping the Tips & Tricks Austrians are the most forgetful shoppers when it product (second highest share in comes to returning a product on time, as almost one- Europe). About Sendcloud & Nielsen fifth (17%) cite this as a reason not to return. 33 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction Take responsibility over returns About the study Study design Who is responsible for returns? European online shoppers You think no one checks your return policy? Consumer characteristics believe that online retailers (60%) are mainly responsible for Like it or not, the facts do not lie: 52% of European Key insights: expectation vs. reality arranging and paying for the return shipment of their order. consumers always check the return policy before they Only a fraction sees the responsibility in themselves (15%). decide to buy a product from an online store. Study findings Part 1: Checkout Who do you think is mainly responsible for arranging Do you check what conditions you can Part 2: Shipping & Delivery and paying for the national return shipment? return a product before buying it? Part 3: Tracking 1. The online retailer (store) Part 4: Returns 60% 52% 33% 15% Part 5: Cross-border shipping Part 6: The future of e-commerce 2. Both the online retailer and the customer Yes, I check the return policy Sometimes No 20% Market guide & profiles 3. The customer The United Kingdom The Netherlands 14% In Italy, a massive 69% of online 69% Belgium I don’t know shoppers always check the return Germany 6% policy before ordering. Spain comes Austria in second place with 65%. France Spain Compared to the European average, a significantly Italy higher percentage of online shoppers in the Consumers from the UK seem to 43% Netherlands (19%), the United Kingdom (19%), care less about the return policy, as Conclusion Germany (17%) and Austria (17%) consider only 43% indicate checking it before Review themselves responsible for arranging buying from an online store. Tips & Tricks and paying the return shipment. About Sendcloud & Nielsen 34 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction Key ingredients for a converting return policy About the study Study design More than half of European consumers check return policies What are the most important elements of Consumer characteristics before placing an order. But what are the key elements they a return policy for an online store? Key insights: expectation vs. reality want to find in the policies? Multiple responses allowed 1. Costs of the return Study findings Consumers mainly want to be informed about: Part 1: Checkout 67% Part 2: Shipping & Delivery 2. Ready to use return label Part 3: Tracking The cost of the return 59% Part 4: Returns 3. When to expect the refund Part 5: Cross-border shipping How to return the product 46% Part 6: The future of e-commerce 4. Return period (numbers of days, after delivery, to return the product) Market guide & profiles When to expect the refund 43% The United Kingdom 5. Being able to submit a return online The Netherlands How long the return period is 40% Belgium Germany 6. Contact details of the online store in case of any problems Austria 37% France 7. Tracking the status of a return shipment Spain Italy 36% Conclusion Review Tips & Tricks About Sendcloud & Nielsen 35 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction What to offer to keep customers coming back? 2 Free returns Most online retailers already know that a good return policy About the study can stimulate repeat purchases, but what do consumers Free returns almost always increase purchases. It is up Study design really find important? to you to test if this results in a larger profit in the end. If Consumer characteristics you insist on letting consumers pay for returns, give them Key insights: expectation vs. reality a discount coupon for your online store with the value of Study findings 1 Alternative refund options the return costs for their next order. Reduce the chance of getting returns by paying extra attention to your product Part 1: Checkout The EU law for online returns states that refunding returns pages and carefully packaging orders. Part 2: Shipping & Delivery is allowed to take a maximum of 14 days after receiving a Part 3: Tracking return notification. However, 46% of consumers still want to Part 4: Returns Part 5: Cross-border shipping know when to expect the refund before buying. In addition 3 Easy and fast return process to the refund to be legally offered, providing online shoppers Part 6: The future of e-commerce an instant voucher as a “fast track” refund option for your It sounds logical and it is, but consumers find an easy to find online store once you have received a return notification and clear return policy extremely important. However, many Market guide & profiles is a good strategy to keep your customers happy without online stores are already going wrong here, which is a pity, The United Kingdom making them wait too long for their refund, while increasing because 85% of consumers sometimes or regularly check The Netherlands your sales and repeat purchases. the return policy before they purchase. Belgium Germany Austria France Spain Italy Conclusion Review Tips & Tricks About Sendcloud & Nielsen 36 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction Return costs are decisive for a purchase About the study Study design Europeans are very price-sensitive customers when it Consumer characteristics comes to online shopping and paying for both shipping and Price sensitivity increases with age Key insights: expectation vs. reality return costs. So it might not be a big surprise that 74% of It is interesting to note that the older online shoppers European consumers would not order at an online store if are, the more price-sensitive they become when it Study findings they had to pay for the return themselves. comes to paying return costs. Boomers are the Part 1: Checkout generation least willing to pay return costs and, with Part 2: Shipping & Delivery I would not order at an online store if I 76% agreement, have the significantly highest share Part 3: Tracking had to pay for the return myself not to order from an online store if they had to pay for Part 4: Returns On a scale from 1 ‘Completely agree’ to 5 ‘Completely disagree’ the return themselves. Part 5: Cross-border shipping Part 6: The future of e-commerce 40% 34% 20% 5 Completely agree Completely disagree Market guide & profiles 67% 73% 74% 76% The United Kingdom The Netherlands The curse of free returns for the fashion industry Belgium Generation Z Millenials Generation X Boomers Germany Of all product categories analysed, online shoppers show Austria the significantly highest agreement for free returns as a France must-have (76%) when ordering online in the Fashion Spain & Accessories category. With these numbers, it is not Italy surprising that fashion retailers have the highest return rates compared to all other product categories. Conclusion Review Tips & Tricks About Sendcloud & Nielsen 37 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction Psychological return tactics About the study Study design Especially during the initial lockdowns, many online retailers Consumer characteristics extended their return deadlines to ensure consumers could Key insights: expectation vs. reality safely return their orders. A smart move that works two ways, as consumers indicate a short return period is an Study findings important reason not to order at a particular online store, Part 1: Checkout while longer return periods lead to fewer returns, because Part 2: Shipping & Delivery customers because customers tend to forget the product or Part 3: Tracking get more attached to it over time. 42% 27% Part 4: Returns 24% 14% Part 5: Cross-border shipping 31% Part 6: The future of e-commerce 36% Offering a longer return period could 17% 23% kill two birds with one stone: increase Market guide & profiles conversion and cause fewer returns. The United Kingdom 35% The Netherlands 38% 19% Belgium 28% Germany 30 60 Austria France Spain Italy 40% 26% 51% 49% 38% 35% Conclusion Would not order at an online Would not order at an online Review store if the return period is store if the return period is less than 30 days less than 60 days Tips & Tricks About Sendcloud & Nielsen The attitude towards longer return policies seems split across Europe however, probably making this tactic Percentage of consumers that would not order at an online store if the return more powerful in Spain, followed by Italy and the UK. period is less than 30 vs. 60 days 38 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
Introduction Flexible return options matter About the study Study design We have seen before that there are plenty of shipping- The product category influences the preference Consumer characteristics related preferences among European consumers for a Interesting to note is that the highest preference to take the Key insights: expectation vs. reality checkout that drives conversion. 90% of online shoppers package to a drop off point can be found for products in the also show a clear preference when it comes to returning a Fashion & Accessories category, while most of European Study findings package. consumers prefer the return package to be picked up from Part 1: Checkout their home / work if it is a product in the Food & Drinks Part 2: Shipping & Delivery How do you prefer to return a package? category. It should be noted that in some cases you can add Part 3: Tracking conditions to returns and refunds. For example, perishable Part 4: Returns 1. Take the package to a drop off point (post office, parcel shop) goods like fresh food and dairy products are often excluded Part 5: Cross-border shipping 45% from the right to return. Part 6: The future of e-commerce 2. Return package to be picked up from my home / work Market guide & profiles 36% Millenials stand out once again The United Kingdom 3. Bring the package back to a local shop of the online retailer The Netherlands 10% At a significantly higher share than Generation Belgium X and Boomers, Millennials prefer to return a Germany package by bringing it back to the local shop of an Austria online retailer. One possible reason for this could be Taking the package to a drop-off point is the most France that millennials like to have immediate access to return popular return option across Europe (especially in Spain a product and get a refund. Austria and Germany) except in Spain and Italy, Italy where having the package picked up at home Big fashion players like H&M show the way: Online or at work is preferred. Bringing the package Conclusion shoppers can return or exchange their online orders back to a local shop of the online retailer is Review for free in any H&M store. It is a smart move, as it not especially preferred in Spain and the UK. Tips & Tricks only saves the company the cost of returns, but also attracts climate-conscious consumers to the store to About Sendcloud & Nielsen generate new potential sales. 39 Sendcloud E-commerce Delivery Compass 2021/2022 European cross-national study
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