Contributed by SUBTA Bronze Partner, Quickbox
As eCommerce continues to shape the global retail economy, consumer expectations and behaviors have dramatically shifted. eCommerce statistics show that vital online retailers, such as Amazon, have primarily contributed to this shift. Consumers have grown accustomed to the Amazon model of speed, delivery, ease in return, and exceptional customer service.
Businesses engaged in eCommerce need to meet higher customer expectations than ever before to gain and retain customers. After price, shipping speed and cost are the most critical factors in a consumer’s decision to purchase. In turn, they are making quality order fulfillment a priority to maintain a successful e-commerce experience.
Thankfully, eCommerce allows us to know more about consumers than ever before due to the robust consumer data that can be analyzed through online behaviors. By analyzing the eCommerce statistics currently controlling the eCommerce market, you can better understand your online consumer’s needs to improve your order fulfillment process.
A look at the most recent eCommerce statistics can prioritize what’s most valuable when considering order fulfillment in your retail eCommerce experience.
- 38% of orders are abandoned if their estimated delivery exceeds a week. As estimated delivery time decreases, cart abandonment does as well, with 16% of online consumers abandoning orders with 6-7 days delivery time, 15% abandoning orders with 4-5 day delivery time, and just 8% of consumers abandoning their orders with a delivery estimated at three days or less. Consumers have grown accustomed to the promise of fast, guaranteed shipping. Fast shipping is no longer seen as a deal, but an expectation. This model can be seen in the Amazon Prime membership and Wal-Mart’s two-day online shipping guarantee. If the consumer’s demand for delivery cannot be met, they’ll find the product elsewhere. The use of 3rd party logistics providers, or fulfillment centers, allows brands to strategically position their inventory in distribution centers closer to their customers. That way, products can be delivered quicker than when stored in one centralized location.
- Additionally, 69% of online shoppers are less likely to repeat shop with a retailer who does not deliver a product on the date promised. Guarantee delivery, and make sure your order fulfillment operations are set-up to match your guarantee. By leveraging the infrastructure of a 3PL provider such as Quickbox Fulfillment, you can guarantee delivery with less risk due to increased proximity to your customers.
- Global B2C eCommerce sales are projected to exceed $4.5 trillion in 2021, an almost 250% increase compared to the $1.3 trillion in 2014. The eCommerce retail market is on a fast growth curve, and will only continue to increase as technologies improve. The opportunity for growth as an eCommerce retailer is significant. As more consumers turn to eCommerce, over brick-and-mortar, retailers will continue to see increases in online sales, demanding more efficient processes to meet high order demands.
- The average cost to fulfill an order in-house is 70% of the average order value. Labor costs, facility overhead, inefficient order splits, low ship velocity, and returns all contribute to the high cost of order fulfillment. To minimize costs, online sellers must effectively manage data and inventory to deliver customer’s products as efficiently as possible. Additionally, online sellers must be equipped to meet the demands of peak ordering seasons within their industry. Optimized processes, enhanced automation, right-sizing for business ebb and flow, and controlled warehousing and logistics costs through 3PL partners can result in significant cost savings for your e-commerce order fulfillment.
- In 2017, Amazon sold more than five billion items through the Prime program. This impressive number is isolated only to Prime member orders. In 2018, Amazon alone accounted for a staggering 40% of all U.S. online retail. (Source) With ordering numbers of this magnitude, one thing is clear; Amazon isn’t going anywhere anytime soon. This means you can continue to look to this e-commerce giant to set the standards for what customers expect in their online shopping experience.
As Your eCommerce Business Continues to Grow
As your e-commerce business continues to grow in the fast-paced market, it’s crucial to align yourself with a partner that can help you effectively do what matters most, get your product in your consumer’s hands quickly with a seamless experience. Contact us to learn more about how QuickBox Fulfillment can help you meet your customer’s needs while minimizing order fulfillment costs.