Study: One-in-three online orders delivered late; shoppers want compensation
Shoppers are growing increasingly frustrated with home delivery to the point of demanding compensation for orders that arrive late.
More than half (53%) of U.S. orders arrive late, damaged or at wrong address, causing frustration among U.S shoppers that risks lost sales and loyalty, according to a report from e-commerce software company HubBox. Only 47% of online orders to home addresses were delivered without any issues.
One-in-three (27%) online orders are delivered late, and one-in-six (15%) packages are sent to the wrong address.
Frustration with home delivery failures has reached the point where nearly half (49%) of shoppers are considering out-of-home delivery collection points to overcome poor delivery service, according to the survey. Also, more shoppers now expect compensation for late deliveries: Over half (53%) expect money off their next order if a delivery is delayed, while 63% expect delivery charges to be waived and another 54% expect a free delivery code for their next order.
[READ MORE: Survey: Younger shoppers, those in cities more likely to experience package theft]
According to the HubBox study, shoppers’ top five home delivery pain-points are:
- Orders delivered to the wrong house or block — 37%;
- Packages left with neighbors they don’t like or don’t speak to — 30%;
- Item arriving damaged — 28%;
- Delivery is late — 27%; and
- Having to wait at home for deliveries — 25%
In other findings:
•Two-thirds (66%) of U.S. shoppers accept that late deliveries are just an inevitable part of the online shopping experience, but 25% will return an item if it is delivered late, rising to 37% of millennials and 34% of Gen Z.
•Additionally, (41%) question their loyalty to a retailer if they experience late deliveries and a further 39% are less likely to shop with that brand again, risking lost future revenues.
“Late deliveries don’t just erode hard-won customer loyalty. Increasingly, as retailers are having to compensate customers for delayed orders, they eat away at already slim margins – and this at a time when the cost of fulfilment is rising and some carriers are charging additional fees for home deliveries,” said Sam Jarvis, CEO of HubBox. “By diversifying fulfilment options, such as adding local pickup, retailers can ensure demand can be met across their network even during peak trading periods such as Black Friday and the Christmas holidays while ensuring consumer experience is maintained.”
The HubBox findings are based on original research of over 1,000 U.S. shoppers by HubBox
