The future of e-commerce unfolded in double-time over the past two years as the world grappled with the juxtaposition of limited access to retail outlets and a burning need to purchase goods during the global pandemic.
E-commerce is big business and the increase in its uptake has been rapid. Online retail sales doubled from 10% in 2017 to 20.4% in 2022. In real figures, 2021 saw almost US$5 trillion spent online, a figure expected to exceed US$8.1 trillion by 2026.
Closer to home, a new report from FedEx shows Australia is the 11th largest market for e-commerce globally, with a revenue of US$31.3 billion in 2021.
One thing is for sure, as consumers continue to join the e-commerce revolution, maintaining customer service quality is critical. Research shows there is a significant gap between how customers and businesses rate a range of e-commerce service touch points.
Peter Langley, Vice President at FedEx Express, Australasia shares some areas to be on top of in the race for online customers.
Research from FedEx highlights a significant gap of 15% in the Australian market between how businesses rate their own customer’s experience and how those customers view it. Deliveries that take too long, and inadequate returns policies stand out as the main issues for customers.
In Australia, the majority (85%) of online orders typically take 3 days or longer to arrive, which can result in frustration for consumers. Yet, SMEs tend to overestimate how
quickly they are delivering with 36% reporting deliveries take 2 days or less. In reality, only 15% of customers receive online deliveries within 2 days and it typically takes up to a
week or even longer for almost 7 in 10.
Problematically, this links to further problems; having an inadequate returns policy and providing good customer support. If a parcel has taken a while to arrive, then needs to go back and there is no help at hand customers are going to shop elsewhere.
For returns, the difference in perception of the level of service provided between consumers and businesses is 23%, with 64% of SMEs rating their returns policy as effective versus just 41% of consumers agreeing. Customer support also shows a 14% gap.
This service mismatch is exacerbated by a skills shortage, with the number of e-commerce roles outstripping supply. Factor in the Great Resignation, which has seen droves move on to greener pastures after re-evaluating their priorities post-pandemic and it is clear businesses that want to grow and meet demand need to be adaptable and look for solutions.
While e-commerce saved many SMEs during the pandemic and opened up new growth avenues, it is now critical for those businesses to fine tune their operations so they don’t lose any ground.
Some ways of doing this include by integrating shipping services within e-commerce platforms. For example, through FedEx Compatible, businesses can generate shipping labels and use other FedEx features, without leaving platforms such as eBay, PayPal or Google Checkout. This means customers can access shipping options and rates without having to switch programs or re-enter information.
Research from Deloitte shows about 40% of consumers won’t complete checkout if the delivery costs are too high and 10% will abandon their cart if a package cannot be delivered on time or flexible delivery options are not available. The good news is, sellers in Australia and New Zealand can also now take advantage of FedEx® International Connect Plus (FICP), a value-for money international shipping service that takes between 1-3 business days for delivery.
Prioritising customer needs is a critical pillar of any effective business strategy and when it comes to satisfying their expectations for deliveries that may mean offering flexible options.
The FedEx Delivery Manager gives customers the ability to receive their shipments when and where they want them delivered. FedEx will send an email or text notification of the planned delivery day to the recipient. If the date is not convenient, the recipient can request a change of the planned delivery date and/or location and receive a reminder on the new date for delivery.
There is now also the option to use this service directly in WhatsApp, with recipients receiving a notification from FedEx once the delivery has been picked up, and then they can conveniently track the status and access the re-direct options from within the app.
The bottom line is, if customers expect deliveries to be prompt and for SMEs to have an effective returns policy and good customer support, then those SMEs must make sure they link with an innovative logistics partner that can help facilitate these aims and stake their spot in this high growth marketplace.
To discover more about how tech and innovation trends can change your business, read more here.
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FedEx Express is one of the world’s largest express transportation companies, providing fast and reliable delivery to more than 220 countries and territories. FedEx Express uses a global air-and-ground network to speed delivery of time-sensitive shipments, by a definite time and date.
