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ShipStation: 2020’s Impact on Consumer Shipping Expectations

By Chris Dawson October 15, 2020 - 2:40 pm

ShipStation have released new findings from their second annual national consumer study, which outlines how consumer shopping habits and Consumer shipping expectations impact on brand perception has changed over the past year. According to the report, “Last Touch, Lasting Impact: The 2020-2021 Edition” North American consumers said they have increased online shopping by 33% over the past year, with nearly two-thirds agreeing that the majority of their shopping is now done online as a result of the pandemic. And, supply chain challenges due to the sharp increase in online shopping have only made the delivery experience more influential in 2020. As the final touchpoint with the retailer, 84% of shoppers say it stands out most in the e-commerce customer experience — up from 80% in 2019.

“As the pandemic forced nearly every industry to shift to digital operations, the retail industry saw a massive surge in e-commerce purchases followed by major strain on the supply chain. Our data shows that while consumers have become a bit more patient as a result, shipping still plays a critical role in converting and retaining customers. In fact, 92% agree that knowing their order will arrive when expected is a key factor in their online purchase decisions.”
– Cindy Schulz, General Manager, ShipStation

The Pandemic’s Effect on Shipping Expectations

Cost and speed of shipping are non-negotiables for online shoppers, as nearly all (97%) say shipping costs are important and 92% say shipping speed is important when making an online purchase decision. While efficiency remains key, the study reveals that the pandemic contributed to a temporary reset in consumer expectations of shipping speed, with the window in which consumers expect to receive online purchases increasing to eight days — up from a five-day window in 2019. Although 79% agree that they are okay with slower shipping as a result of the pandemic, six in 10 reported that lowered expectations and understanding of longer delivery times are only here for the short-term. The study shows that greater understanding comes with greater costs, with two out of three consumers now expecting all brands to provide free shipping options in light of slower-than-normal shipping speeds.

Returns Are No Exception

More than half (54%) of online shoppers are also influenced by retailers’ return policies, with free and easy topping the list of consumer requirements. In fact, while down 5% from 2019, a whopping 89% believe that retailers should offer free returns. Additionally, 85% expect the process to be self-service, requiring no contact with customer service. And in light of recent safety precautions, 67% of shoppers say they plan to steer clear of in-store returns, opting instead for mailbox drop-off (67%) or porch pick-up (66%) options.

Delivery’s Impact on Brand Perception and Long-term Loyalty

While 79% have no preference when it comes to which carrier delivers their order, 80% of consumers believe that it is ultimately the responsibility of the retailer to ensure products are delivered on time and as expected. And brands face major risks if they get shipping wrong, with 90% of consumers saying a bad shipping experience negatively impacts their overall shopping experience, and 87% saying that it makes them less likely to shop with that retailer again in the future.

A Lasting Impression: Getting it Right

While mistakes are bound to happen, 93% of shoppers say that if a retailer acknowledges a poor delivery experience, they would still shop with them in the future. In order to maintain brand loyalty, 60% say that retailers offering discount codes for future purchases will keep them coming back. Lastly, customers want to stay informed more than ever with 79% agreeing that their experiences this year have increased expectations around brand communications when it comes to delays or cancellation updates. More specifically, 89% expect brands to proactively address potential shipping delays prior to checkout.

Lockdowns due to the pandemic forced retailers to pivot nearly overnight. However, as more shoppers continue to move online, retailers still have a massive opportunity to not only capture new customers but also increase customer retention. While consumers are understanding, their trust still lies with the retailer. With tailored shipping options and increased transparency, smart brands can turn shipping into their secret weapon for success.

You can download the full ShipStation report “Last Touch, Lasting Impact: The 2020-2021 Edition” from the ShipStation website.

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