Customers Value Convenience Over Speed for Deliveries

Delivery can make or break the relationship retailers have with their customers. Conventional wisdom says shoppers want everything they order as fast as possible—not necessarily. Unlike retail giant Amazon, most retailers aren’t equipped to offer same-day or free next-day delivery. While customers often view receiving merchandise the day after orders are placed as the accepted norm, they understand there are more options to consider when ordering online. 

With so much emphasis on fast delivery, retailers may lose sight of delivery methods that can increase store traffic and are better suited to their business model. It’s also essential to watch emerging trends in shopping behavior to indicate what customers value in delivery. Many consumers prioritize convenience and the ability to pick up orders at a time and place that fits their busy schedules. Perhaps, that’s why to click and collect is increasingly popular with Gen Z and Millennial shoppers.

Why Click and Collect?
Many retailers already offer curbside pickup or Buy Online Pickup in Store (BOPIS) service. Click and collect allows shoppers to choose between the two options when they order online through the store’s website or mobile app. Curbside pickup helps customers avoid going into the store, while in-store pickup lets them collect their merchandise in-store and carry them out at their leisure. Click and collect services have steadily grown throughout the pandemic. New users are added to the list daily since shoppers prefer to control the delivery experience.

According to Steve Rivers, Co-founder and CCO of Intelligent Reach, “Click and collect not only simplifies life for the customer, but it is also cost-efficient for the retailer, environmentally friendlier, reduces returns and increases upsell opportunities. The Wall Street Journal reported that 50 percent of shoppers opt for click and collect and that 45 percent also purchased something else during the visit.”

Benefits for Retailers
Many new shoppers opting to use click and collect typically prefer shopping in physical stores. They select specific brands and products and buy from familiar retailers. These customers don’t mind hopping in their cars and driving to the store for a pickup. Research indicates orders placed with click and collect methods are twice the size of other ordering options. Retailers also have higher customer retention rates since people who use curbside pickup or BOPIS are more satisfied with the overall shopping experience.

  • Two-thirds of new users plan to continue using click and collect
  • Forty-eight percent of Millennial shoppers and 39 percent of Gen X shoppers have used 
  • Click and collect delivery methods
  • Overall, 56 percent of U.S. shoppers use click and collect

Growth Potential for Hardware Stores
Retailers look for opportunities to increase foot traffic and generate add-on sales—click and collect deliveries are good options for hardware stores that sell hard-to-find items and want to give shoppers cost-effective and convenient alternatives. Andrew Norman, General Manager at ShipStation, commented, “Click and collect is an option that has a lot of growth potential—particularly if you sell items that are harder to buy in the stores that they’ll collect their orders from. This option of click and collect offers customers more peace of mind. Not only are porch pirates less likely to steal their order, but it also helps an easier returns process. Finding economical ways to encourage customers to buy from you while also demonstrating brand loyalty can be tough when they quickly turn to titans like Amazon to get their items shipped free. But adding value and support to your customers can be just as enticing.”

Shoppers willing to Pay for Convenience
Yes, people like free delivery. However, they want to know the exact date when merchandise will be delivered. Shoppers are afraid they will miss the delivery and wish to avoid the hassle associated with tracking packages. Dan Ennor, Commercial Director at GFS, states, “Forty-eight percent of consumers were happy to pay for convenience, showing a preference for the likes of nominated time delivery; dispelling the myth that “fast and free” delivery trumps all.”

Offer Customers Options
Customers want options to determine the best delivery method for their purpose. In most cases, shoppers don’t mind waiting a few days for their merchandise. While free and same-day delivery is popular, it is not a practical option for most small businesses. Owners should consider their profit margins before deciding the types of delivery they should offer. The options should be sustainable for the long-term and make it easy for customers to do business with your establishment.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.