Online shipping technology company Neopost Shipping has published a survey report that highlights the need for shipping to contribute to ‘customer experience’ (CX), with 98% of young consumers abandoning their carts online due to shipping-related friction.
The report Great Expectations: Shipping, CX & Gen Z underlines the influence that shipping has on e-commerce conversion and retention. It features survey data from retailers and online consumers in four countries: United States, United Kingdom, France and Australia.
“Gen Z is changing the e-commerce playbook by challenging retailers to elevate the customer experience. Shipping is a key element of online shopping, so retailers who are adept at working through its complexity to leverage it as a revenue-driving CX tool will reap great returns,” said senior vice president Americas at Neopost Shipping Matthew Mullen.
Key findings of the report include:
- Cart abandonment strongly influenced by the lack of shipping options: 98% of Gen Z consumers have stated that they will abandon cart if a preferred shipping option is unavailable to them at checkout, with 44% opting to then buy from a competing online brand, 33% attempting to visit the brick and mortar store of the same brand, and 21% planning to visit a mall to buy the items.
- Retailers are not keeping up with Gen Z shipping demands: Compared to the previous year, Gen Z’s willingness to pay for new types of shipping services such as hyperlocal (1-3 hours), same-day and weekend or after-hours delivery has increased. Additionally, Gen Z’s demand for these consumer-centric shipping services is significantly higher compared to the average consumer, yet only up to a fifth of retailers offer them.
- Strong appetite by Gen Z for speed-based delivery services: Gen Z is more committed compared to the average consumer to shop online if retailers can have their orders shipped faster. 71% of Gen Z versus 56% of average consumers will increase their basket size to meet the spend threshold for free hyperlocal delivery (1-3 hours), while 44% of Gen Z versus 25% of average consumers will shop more online if next-day delivery was available.
“Gen Z is instant gratification personified,” said Mr Mullen, “In a market where the likes of Amazon are pushing the boundaries on what a great shipping experience looks like, retailers rarely get a second chance with young and savvy consumers who won’t think twice about abandoning brands that cannot provide the shipping choice and convenience they desire.
“It’s a known fact that shipping and fulfillment can be operationally challenging for many retailers. Instead of taking on the burden of building everything from the ground up, (retailers should) leverage the supply chain innovations that are in the market – such as updating your technology stack with a shipping software platform, trialling smart parcel lockers, and accelerating the process of getting online orders out the door with automated packing machines,” Mullen said.
The Great Expectations report includes new insights on how shipping can motivate or detract Gen Z from online shopping, why shipping can drive Gen Z to abandon cart and buy from a competing retailer, what retailers can do to convert and retain Gen Z through shipping, and how marketplaces like Amazon are winning Gen Z over with their approach to shipping.