Photo: Getty Image | Lawrence Glass
Are Consumers Willing to Wait Longer to Have Their Online Orders Delivered?
How fast do consumers want their online orders delivered? Perhaps not as quickly as retailers think, according to a Wall Street Journal article posted yesterday.
Jungle Scout’s Consumer Trends Report from July 2021 found 41 percent of consumers expect their online orders to be delivered within two to three days. Twenty-seven percent want their orders more quickly with same- or next-day delivery. That leaves 24 percent who can wait four to seven days for orders and four percent willing to wait for more than a week. The remaining five percent never shop online.
The Journal article points to several more recent developments as indicators that Americans’ need for speedy deliveries may be waning.
These include the growing popularity of apps such as Temu, where consumers are willing to accept slower deliveries in exchange for meager prices on clothing and other goods. Orders placed can take weeks to arrive.
The article also points to the unquantified growing popularity of Amazon.com’s Amazon Day option. Prime members choose to have all their orders delivered on a single day rather than getting numerous packages scattered throughout the week. Customers who choose the Amazon Day option may get a credit of up to $1.50 for going that route.
Studies cited in the Journal point to delivery speed declining as a factor in where consumers place online orders. Consumers typically wait when given a choice between paying for fast shipping or paying nothing and waiting a while longer.
Cost reduction is a primary concern for retailers delivering goods to consumers’ homes. A Bringg survey of 500 U.S.-based retail managers responsible for supply chain or digital functions found that 89 percent struggled with their last-mile delivery operations.
The respondents cited paint points in their operations including:
- Working with carriers (42 percent);
- Reliance on manual processes (41 percent);
- Driver retention (41 percent);
- Fuel costs (32 percent);
- WISMO (“Where is my order?”) calls (28 percent);
- Cost of returns (28 percent).
Discussion Questions
DISCUSSION QUESTIONS: Can retailers slow down days of delivery without putting themselves at a competitive disadvantage? What can retailers do to convince customers to wait longer for product deliveries?
Poll
Loading …BrainTrust
David Naumann
Marketing Strategy Lead - Retail, Travel & Distribution, Verizon
Jeff Sward
Founding Partner, Merchandising Metrics
A lot of the perceived elevated expectations on fast delivery times was probably created by retailers competing with other retailers to offer shorter delivery times. As consumers, we were delighted and often surprised with how fast some of our online orders arrive at our doorstep. That said, most things we order are not urgent and retailers often deliver products much faster than we expect or need them. A tiered approach where there is a charge for same-day or even next-day deliveries and slower deliveries will be less, or free, might be a good approach.
Retailers can slow down days of delivery without putting themselves at a disadvantage by continuing to leverage convenience and pricing, not to mention variety in the case of online retailers like Amazon. It is difficult to compete against a shopper’s ability to get in a car and drive themselves to satisfy the need for immediate gratification or for an emergency purchase. Plus many of us, as in the study, are happy to wait a few days for our online purchases. Thankfully, this likely means that the day the “dronesquitoes” rule our skies remains distant or at least gives us time to get the FAA squared away.
Fast + free was brilliant, and extremely effective, as a customer acquisition tool. And it quickly became table stakes just to stay in the game. Now retailers need slow + fee to improve their profitability. I can only hope that a whole bunch of customers will conclude that slower delivery over a vast array of products will fulfill their needs. Sure next-day delivery will sometimes be called for, but it doesn’t need to be table stakes.
We found the exact same thing when we surveyed consumers in 2021 — the majority of respondents said they expect packages to arrive within three to four days. Consumers simply want items when they need them, and often there isn’t that urgent of a need. It depends on the occasion and the category — there isn’t a universal expectation when it comes to timing.
It’s going to be incredibly challenging to change the delivery rules after so many years of training shoppers to expect fast and free, especially with so many retailers continuing to push a same-day delivery message. Consumers are quick to notice conflicting messaging and will discount a retailer’s attempts at re-education if that retailer doesn’t also walk the talk. Retailers are going to have to offer some real incentives to get shoppers to adopt new habits, which will impact revenue in the short term. But with consistency and persistence shoppers will come around.
Retailers can play the sustainability card as one option. Except for groceries, I see little need for super fast delivery. I think the Amazon Day option is a great move. The amount of gas and now electricity wasted on rushing small single packages around the country is insane. We need to do something now to stop this environmental catastrophe we are cruising towards.
Retailers can use the Amazon Day idea to turn delayed shipping into a discount for the shopper, instead of charging extra for faster delivery. “Ooh, I can save a dollar by getting this shipped to me at normal speed!”
Given the many dynamics in the market today, “quick” commerce is definitely slowing, giving retailers a window to re-cast their one-to-five day delivery options without suffering market erosion. I know I’m only a data point of one, but I’m less likely to want something same-day now, unless it’s an emergency situation. Otherwise, I’m perfectly fine with a two-to-four day delivery option. Amazon Prime has a nice option to “bundle” items into one shipment and we’ll see more retailers moving in this direction.
I think it depends on the products. For most items, I suspect if the retailers give customers a choice and perhaps offer incentives for consumers to opt for slower delivery, then there is a very good chance that customers will be willing to wait.
I have always felt that same-day/next-day delivery was a very, very niche space and sometimes think “Well, that’s why God made stores.”
With most products, as Gary said, the timing can be stretched. Sometimes you need it right away. That’s pretty rare.
To be honest, I’d rather wait a day than have Amazon come to my doorstep with a delivery at 4 am.
If consumers are offered an option to have stuff delivered quickly and for free, most will take it. Retailers have assumed that this means there is a desire for ever faster delivery and have trained consumers to expect much service, The problem is that fast, and especially super fast delivery, come with big costs attached for retailers. We’re now in a position where companies are trying to inject some realism into delivery, but it will be difficult to unwind consumer expectations.
We have said for a long time that very short delivery times was a thing created by marketing rather than consumer driven. It was a race to the bottom to have the fastest delivery time and took no account of the cost of the shipping or the damage to the environment of this type of marketing. It seems that at last people are beginning to speak the truth and hopefully online retailers will listen to what is the reality. Consumers would rather have better value and slower deliveries–that benefits the retailer, the environment and now seemingly the consumer too.
We all likely agree, and we’re supposed to be “influencers” but no one listens to us!
There is perceived value in quick delivery. Brands have used it as a competitive differentiator. In the old days, two weeks was considered speedy. That moved to seven days, two days, next-day, and now same-day. And in some cases, just two hours. In the end, the customer wants it when they want it. And part of it depends on when they need it. In other words, they may not need it in two hours. They may be happy with next-day. As a retailer, you must know and understand your customers’ expectations. Surround that with an easy experience that is consistent and predictable, and you’ll win the confidence of your customers.
All things being equal (product, price, availability) for an item or basket of items sold by multiple retailers/e-tailers, a consumer will likely choose the fastest option as the “deal breaker” if there’s nothing else to sweeten the deal. That would probably mean going with Amazon (especially if the buyer has a Prime subscription). Going forward, to win these customers over the name of the game will be differentiation. If as a retailer you can’t compete on delivery speed, then find another reason for the consumer to choose you. Could be a loyalty program (your own or a third party), a donation to a cause, a brand philosophy, your ESG, investing locally, etc. Change next-day delivery from a must-have to a nice-to-have.
The expectation of fast deliveries was created by retailers during the who can do it fastest “battle”. Retailers have since learned the sales gains they expected didn’t occur at the level they had hoped, and the cost was greater than they expected.
As the more and more retailers seek to lower their delivery costs, they are looking for ways to incentivize customer to change their delivery expectations whether it is bundling deliveries, so you don’t have someone coming to you home every day with deliveries or by adding a fee. As more retailers change their delivery practices the likelihood of losing a customer to another retailer over delivery speed diminishes.
The answer is choice. Provide consumers with choices on speed and service. Fulfillment is either fast and expensive or slower and less costly. It benefits the seller and the buyer to have a tiered choice system. We did project for a major apparel retailer a couple of years ago. They assumed they HAD to have 2 day and free on all purchases. Our consumer research and surveys show that not to be the case. Many were happy with 3-4 days on a Sweater and some desired 2 day for a party dress. We saved them a lot of money by not simply instituting 2 day and free across the board.
At the risk of stating the obvious, everyone doesn’t want the same thing: some people don’t care, some demand instant and free; slowing down will lose that last group (and for the most part retailers will discover the loss was a blessing!)
Offering a variety of timeframes – and, of course, actually abiding by them – would seem to be a simple remedy.
Absolutely consumers are willing to wait a bit longer for certain items (housewares, apparel, etc) but not so much for essentials like medication and food.
I believe the stats from the Consumer Trends Report suggest that the majority of customers want their items delivered soon. However when it comes to rapidly delivering online items, free shipping carries significant weight. It is understandable to charge for expedited or same-day/next-day deliveries, and customers will be willing to pay additional fees if there is a sense of urgency. However charging for standard delivery is unreasonable and may even discourage customers from making future purchases with the retailer.
In my opinion, a “threshold” method that sets a minimum order amount to be eligible for free shipping remains a viable option. Although retailers must not charge more than 10 percent of the purchase value for expedited deliveries.
Ultimately, retailers should understand that free shipping is all that customers desire for their orders. To find a mutually beneficial solution, there needs to be a middle ground established.