Online shoppers in the U.S. want more shipping options, and they want to receive their online orders faster than many retailers offer to deliver them, according to a survey from fulfillment software vendor Temando.
Temando’s data found that 80% of shoppers surveyed want same-day shipping, while 61% want their packages even faster—within 1-3 hours of placing an order. In the study, titled “State of Shipping in Commerce 2016,” Temando surveyed 1,000 consumers on their online shopping preferences and 214 retailers selling online and offline across various product categories in October 2015. Most retailers surveyed were in the small to midsized range, with 76% of all retailers surveyed shipping 1,000 or fewer online orders per week.
Temando CEO and co-founder Carl Hartmann says the study exposes a glaring problem: “Consumer expectations are increasing. Retailers still aren’t offering the full gamut of services that consumers are expecting.”
Temando’s data bears that out.
While 80% of shoppers surveyed want same-day shipping, only 53% of retailers surveyed offer it. Likewise, while 61% of shoppers want the option to receive their package within three hours of placing the order, just 20% of retailers offer that option.
Hartmann attributes this to what he calls “Uberization,” the expectations of individualized services created by companies like the ride-sharing app Uber, which lets consumers summon a ride when they want one.
“People want more precision,” he explains. “It’s about a need to control when I’m going to get (an online order), because if you’re constantly traveling for business, you might only have certain windows when you’re home to receive it.”
While consumers say they want faster shipping options, not as many are willing to pay extra for them.
Temando’s data shows only 31% of shoppers surveyed are willing to pay to receive an item within 1-3 hours, about half of the 61% who say they want such speedy delivery. Likewise, 55% are willing to pay for same-day shipping, but 85% say they want such service, and 60% are willing to pay for express shipping (defined as 1-3 days), yet 85% of shoppers surveyed want express service.
Also gaining popularity: More shoppers want to pick up their orders in stores.
Temando found that 82% of shoppers surveyed want the option to buy online, pick up in store, and just 50% of the retailers surveyed offering it.
Retailers with bricks-and-mortar locations can satisfy both—the faster delivery and the buy online, pick up in store shoppers—by using their stores as mini-fulfillment centers, Hartmann says.
“The multichannel guys, they know that if they leverage that correctly, it does give them a competitive advantage,” he says. “It’s about fitting into consumer convenience, meeting that instant gratification want.”
Hartmann says online retailers can boost revenue this year by offering shoppers more shipping options; he says three to four options is ideal so as not to overwhelm the consumer.
“Ultimately the customer cares about ‘if I order by now, what are my options for when I get it, and when I do receive it? Am I getting it straight from one of the carrier stores, and is there a locker option?’” he says. “They don’t want to see 20 (choices) at a checkout because it overwhelms the customer.”