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Amazon Prime Day has officially kicked off Peak 2020, but it’s safe to say that this year it will be unlike any other.
The Coronavirus pandemic has led to unprecedented eCommerce growth with consumers now buying more online than ever. This volume uplift looks set to continue, with UK online spending expected to reach £73.4bn by the end of 2020 (+18.1% post-Covid), and it’s estimated Black Friday will be 14% bigger than the last.
These are big figures, especially when retailers and carriers have been managing peak-level volumes throughout the year already. So, could we be seeing a “peak on top of peak”?
But while Covid has helped some businesses thrive, 2020 also saw some of our favourite retailers and brands sadly collapse into administration. It’s also thought that almost 3 million people will be unemployed by Christmas, so consumers may well be more reluctant to spend.
So, are retailers set for a bumper Q4 or will Covid steal Christmas?
We think so, yes. Although consumer confidence could be shaky, online will rule supreme as local lockdowns and social distancing continue to keep people away from the high street.
At GFS, our customers have consistently seen an increase of +50% in volume compared to the same period last year – and there appear to be no signs of this slowing down.
Each year peak sets new highs but it feels as though the peak will be turned all the way “up to 11” this year.
This may sound like a dream from a profit perspective, but it could quickly turn into a nightmare if retailers are operationally unprepared to fulfil these kinds of volumes, amid the unpredictability of peak and the uncertainty of a global pandemic.
The sudden impact of Covid exposed some major weaknesses in eCommerce business supply chains, and really highlighted the importance of having flexibility and contingency to adapt at short notice. Any retailers that haven’t taken heed will only continue to stumble through peak in crisis mode, leaving themselves vulnerable and exposed to risk.
So sales may not be a problem, but getting orders delivered to customers in the way and time they want will be more of a challenge.
It is worth noting that carriers have invested millions in expanding their networks this year, opening more depots, procuring more vehicles and hiring more staff to ensure they are match-fit and ready to support what looks set to be a particularly challenging peak.
But – and it’s a big but – carriers are reporting that their anticipated volume forecasts have been supercharged by 5 years, so this peak, carriers are going to be really strict in how they manage volumes through their network.
This means you should be prepared for:
It’s critical that your forecasts are as accurate as possible to lock in the right capacity with your carriers, BUT we also know that things don’t always go to plan. So, it’s also vitally important to have access to multiple carriers, to give yourself a ‘Plan B’ if things go wrong.
While consumers were reasonably understanding of the challenges that retailers faced throughout lockdown, 9 months later they’re not going to be so forgiving – especially as we head closer to Christmas when timing is everything.
Now consumers are expecting to be able to order and receive their delivery when they expect it – virtual queuing and 10-day lead times are just not going to cut it. After all, retailers have had all that time to prepare and fix any operational, technological and logistical issues that were highlighted by Covid – right?
Actually, in a recent study carried out by Brightpearl, 54% of retailers have not made any changes to their fulfilment model since the pandemic.
This Christmas, it won’t just be a battle for the best products or most attractive promotions, but the most reliable delivery. With the spotlight firmly on customer service, combined with the huge hike in parcel volumes, this will naturally result in more inbound customer service queries, which will need to be resolved quickly to minimise any impact on the customer experience and on CS team workloads.
Peak is a time when brand loyalty is really put to the test, and at a time when the patience of the general public is wearing thin. Delivering on your promises will be a key differentiator that will not only win new business but solidify repeat custom through peak and into the New Year.
2nd January is National Returns Day, the day that sees 72% more returns than on an average day in December.
Often businesses forget about returns because the focus is on peak. But with 78% of consumers looking at the returns process before choosing where to shop, they are hugely important. With more people buying online, we can expect to see more returns than ever come January 2021.
An online paperless returns portal is the best way to get visibility of all your inbound returns so they’re easier, faster and more cost-effective to process.
Peak is likely to throw up a lot of surprises, and at GFS we love surprises!
We’ve been protecting peak for retailers for the last 20 years, and we actually look forward to it every year because it’s when GFS really comes into its own and when customers are reminded of why they chose us.
“Our only regret after experiencing our first peak with GFS was that we had not done this 10-years earlier!” hampers.com
This year, we’ve invested heavily in increasing our capacity and ramping up our operation. We’ve opened new depots, added new global suppliers and even expanded into Europe with GFS Europe, to give us more coverage than ever before.
If you need a delivery partner that’s got your back this peak, contact us now to talk about how we can support you – But you’ll need to act fast, the countdown to peak has already begun…
Traditionally, multiple carriers mean multiple contracts, invoices and technology systems which can be complex and time-consuming.
Managed Multi-Carrier Services keep it simple by providing access to a whole range of carriers and services all in one place. This means you get the breadth and flexibility of multiple carriers, without the hassle of managing each individual supplier.
One invoice, one technology platform, one point of contact gives you everything you need for shipping, labelling, tracking, reporting and more.
According to retail market data insight leader Retail Economics and GFS’ consumer and retailer research in 2023 (‘Battling Basket Abandonment’ whitepaper, 2023), two-third of consumers (66%) would like to see retailers offer a better choice of delivery options at online checkouts.
Based on the most frequent online shoppers, a highly profitable demographic that buys online at least once a week, five delivery options should be the minimum benchmark for retailers.
The current delivery options offered by many online retailers are somewhat limited considering consumers’ growing expectations and vast possibilities in today’s delivery landscape.
The research shows UK retail businesses offer customers 3.5 delivery options on average, while online-only retailers offer even fewer, with only 2.8 delivery options on average.
Regardless of online or multichannel, most retailers fail to provide the breadth of delivery options required to meet customer expectations.
Multi-carrier Parcel Management benefits any business that has big ambitions to grow, or perhaps one that has already experienced rapid growth, as well as any business that ships internationally (or wants to), or that sells across multiple sales channels. Simplifying delivery through a multi-carrier management partner can help streamline internal processes, and free up time and resource to focus on maximising sales and international expansion.
GFS offers single access to a whopping 1000+ services across multiple carriers, countries and channels for UK, Europe and Rest of the World (ROW) shipments in 220+ countries.
As the UK’s first and leading managed multi-carrier service, GFS ships over 30 million parcels a year, and as one of the biggest buyers of carriage in th UK, we offer competitive rates and optimise costs for retailers.
GFS’ proprietary Enterprise Carrier Management technology, top-notch expertise, and pro-active support give you the flexibility to grow and scale your business.
With GFS it’s one partner, one contract, and one IT integration offering a world of limitless possibilities.
Delivery doesn’t have to be complicated. You just have to see it differently.
Businesses have been bracing themselves for Brexit for 4 years but this year the countdown to Brexit became very real – and then of course 2020 threw us an even bigger curveball.
The Coronavirus pandemic has really tested the resilience of retailer supply chains, as a dramatic spike in orders followed a sharp decline in supply. In May, online sales hit a 10-year high and were up 24% on the same month in 2019 (IMRG Capgemini Retail Index 2020). Retailers were left with a bottleneck of delays as they struggled to fulfil demand and maintain stock levels. This exposed some key weaknesses in business supply chains, with the importance of contingency and agility shifting sharply into focus.
As the world gets to grips with the ‘new normal’, what can we learn from the impact of Covid19 and how can we apply these key learnings to supply chain strategies now as the Brexit transition period comes to a hard stop on 31st December 2020.
One of the biggest learnings we can take from the Covid situation this year, is to spread out potential risk as much as possible, and not to keep “all your eggs in one basket”, especially when it comes to suppliers.
Many retailers rely on “The Factory of the World” to source their products, but when the virus first appeared in China, the country swiftly closed its borders, leaving stock levels hanging in the balance for many retailers.
Do you have suppliers in the EU? We don’t know what will happen when border-free trade ends on 31st December. It’s unlikely there will be a complete halt on supply, but there will be some significant changes to customs and import/export duties, which could lead to longer transit times and potentially higher costs.
Diversifying your network of suppliers will help spread and reduce the risk, so that if you come up against any problems importing stock from Europe, you can quickly pivot and order stock from alternative UK-based or international suppliers.
Just as there may be delays and costs importing goods from the EU, the same will apply when shipping orders out to your EU customers.
If you have a large customer-base in the EU, or have plans to expand to Europe, shipping from the UK will incur more complex customs processes and duties, which could result in longer transit times, delays, or worse, return to sender.
Moving part of your fulfilment operation to the EU could help you avoid the cost and complexity of border controls, customs documentation and Duties altogether. This means your suppliers can deliver to your EU warehouse or fulfilment centre, and you can deliver from this location directly to your EU customers for faster shipping and a more seamless delivery experience. This will reduce the risk of delays and costs, as well as provide a base to continue growing your business in EU countries.
If this is not for you, there are a number of things you can do now to reduce the risk of border control issues from the UK, such as using Paperless Trade and getting a Duty Deferment account – check out our Brexit Checklist for a full list of everything you can do now to minimise disruption to delivery and returns from January 2021.
Contingency means giving yourself flexibility and agility to adapt to change.
At the beginning of lockdown, carriers were overwhelmed, running over-capacity most days, and if this happens, it means they can stop collections and refuse parcels. This is not uncommon, and we see this often during peak sales periods like Christmas. On the other hand, we’ve even seen major carriers go into administration at crucial times of the year.
If you rely on a single carrier, and this carrier comes up against any problems, your parcels can’t go anywhere, which just creates a traffic jam of customer orders that creates a cycle of delays. The trick is to have multiple carriers at your fingertips so you can easily switch if you need to. An added bonus of this is that you can use each carrier to your advantage and tailor delivery to each customer, product and destination to strike the right balance between service and cost-efficiency, which also gives the customer the best possible delivery experience and helps you manage costs.
As lockdown boosted home delivery, this has inevitably also led to an increase in returns.
But returns have a direct impact on the bottom line – in fact they cost UK retailers a whopping £60bn a year! (ZigZag, 2020)
Post-Brexit, EU returns could be subjected to additional customs and duties requirements, which would create even more complexity and cost for businesses.
With 89% of consumers checking the returns policy before making a purchase (UPS – “Pulse of the Online Shopper), retailers can’t afford to leave returns to chance. But retailers will need to manage the customer experience with operational cost – and this all comes down to efficiency.
A paperless returns portal (like GFS Global Returns Pro) can help you electronically generate the required customs declarations for duty relief on cross-border returns , to ensure cross-border returns are as swift and seamless as possible for customers, and that you don’t pay duties twice.
Alternatively, if you choose to relocate your fulfilment operation to Europe, you could avoid the dreaded red tape altogether.
eCommerce has boomed as social distancing moves consumers away from the high street, and soon we’ll be heading towards peak AND Brexit at the same time.
Both Peak and Brexit will throw up a lot of unknowns. We don’t know what social distancing measures will still be in place over Christmas, or how consumer confidence will be impacted.
Forecasting and planning can only take you so far, which is why it is vital to focus on mitigating potential risk and having contingency plans in place.
Now is a critical time to strike the right balance between protecting the bottom line and the customer experience.
Here at GFS, we have been prepping for Brexit for the last 4 years, working closely with our carriers and customers to understand how the industry is evolving to future-proof against Brexit and how we can help retailers.
That’s why we have set up GFS Europe, to help businesses move their operations into Europe easily as contingency in response to Brexit. As part of this new service, we are now offering warehousing and fulfilment services, as well as collections, deliveries and returns from/to anywhere in Europe.
Lockdown restrictions are slowly being lifted but carriers are still taking extra care to deliver as safely as possible.
You probably already know that contactless delivery has become the norm, so parcels no longer need to be signed for, and drivers and customers can keep their distance to reduce the spread of infection. But proof of delivery is still a must to protect the bottom line and the customer experience – lost parcels cost a lot of time and money and are immensely frustrating for consumers.
But different carriers are carrying out contactless deliveries in different ways, and it’s important to know what your customers can expect from their delivery, and what your POD should now look like.
Yes and no – there are nuances across all carriers. So we spoke to the UK’s top 3 biggest carriers to understand what ‘contactless delivery’ means to them so you have a full understanding of how parcels are actually being delivered in this way and, what the experience is for your customers.
DPD
“We won’t ask you to sign for your parcel, we’ll take a photo of it instead in your open doorway, as proof it has been delivered. If you’re self-isolating, leave a signed note telling us where to put your parcel.”
Hermes
Yodel
It is the responsibility of our trusted carriers to provide drivers with the equipment and processes to deliver correctly and safely, so it’s great that carriers have adapted to make sure they can still capture a POD without the need for a physical signature.
It wouldn’t be surprising if carriers choose to adopt some of these changes permanently. A photo offers better transparency and more accurate proof of delivery than a signature, which can be ambiguous and illegible. It can also help customers locate parcels left in a safe place more easily.
And at GFS, we are strong believers that visibility of delivery is the key to getting delivery right first time, every time.
That’s why we spend every day pro-actively tracking and monitoring parcels. Our Customer Care team actively look for delivery issues so they can solve them before they affect the customer, and our multi-carrier tracking portal GFS Seeker offers traceability of all parcels – even across 50+ carriers and 200+ countries.
Having accessibility and transparency of data really is what powers delivery accuracy and efficiency, no matter what happens.
Why not see how we ensure retailers have a delivery contingency plan – even during times of uncertainty and rapid change? Watch the video!
London, 17 August 2020: After reviewing the reverse logistics market, GFS has selected ZigZag’s cutting edge technology to launch their new returns solution, GFS Global Returns Pro. GFS powers delivery for fast-expanding B2B and B2C eCommerce retailers worldwide, providing multi-carrier services, technology and expertise to manage the entire logistical process from checkout to doorstep. GFS Global Returns Pro, specifically aimed at SMEs and larger online retailers, packages together the global technology platform with 200+ multi-carrier services, plus expertise from GFS, into a single solution. It gives customers a fast and easy way to request a return in less than a minute, and enables retailers to cut the cost of returns by up to 40%. The portal can also be deployed in just 1-2 days with a simple flat monthly fee.
Neil Cotty, CEO for GFS comments: “Until now, only the largest global retailers have had access to the tools and resources to master the returns challenge. GFS Global Returns Pro will level the playing field by offering small and larger retailers a fast and affordable solution to simplify returns and give customers a high-end returns experience without the high-end cost.”
GFS Global Returns Pro is launching at the perfect time. Online retailers continue to battle rising return rates of over 50% and cost the UK more than £60bn per year. Returns also cause a huge dent in the bottom line because stock becomes tied up and handling costs are high. Returns have also become a high priority for the consumer too. According to recent research by UPS, 79% of consumers check the returns policy before making a final purchase decision, leading to 1 in 2 purchases being abandoned at checkout because they did not like the retailer’s returns policy. In recent months, lockdown has caused a sharp shift from high street to online shopping as many are left with no option but to shop online – and as online spending grows, so does the problem of returns.
Neil Cotty, CEO for GFS continues: “This is a strategic development for us. The addition of Global Returns Pro to the GFS portfolio means that we can now offer an unrivalled global outbound and inbound solution that makes it both fast and simple for eCommerce businesses to expand internationally.”
Hundreds of online retailers rely on GFS to deliver over 30 million parcels every year and is the behind-the-scenes global delivery partner for a number of the world’s fastest-growing eCommerce brands.
Al Gerrie, Co-Founder and CEO, of ZigZag Global comments:
“GFS is a well-respected eCommerce provider for some of the most exciting retailers in the industry. ZigZag is delighted that GFS has decided to use our technology to power their new returns solution. Customers from a long list of promising retailers already using GFS for their outbound logistics, will now be able to take advantage of our hassle-free returns portal for faster refunds, creating satisfied and loyal customers.”
About ZigZag Global
ZigZag Global is a SaaS platform helping retailers to manage returns globally.
The ZigZag platform connects retailers to a global network of 220 warehouses and more than 200 carrier services in over 130 countries – all from a single integration. ZigZag uses predictive analytics to understand the most cost-effective and energy-efficient route to work out if a retailer should hold and resell returned products in local markets or bring them back via consolidation.
ZigZag’s mission is to deliver the best technology and service to transform the returns experience globally. Our mission is to reduce the cost, waste and friction associated with returns, boost customer loyalty and make retailers more profitable and sustainable.
Contact ZigZag: hello@zigzag.global – +44 203 286 8223
About GFS
As the pioneer of Enterprise Carrier Management (ECM), GFS has been behind the success of some of the fastest growing brands since 2001, providing unique and affordable shipping solutions that optimise delivery from checkout to doorstep. Managing over 30 million parcels a year, our history and presence makes us the trusted partner of hundreds of online retailers, and our continual innovation ensures we anticipate the needs of our customers and stay at the forefront of the industry.
Contact Bobbie Ttooulis: bobbie.ttooulis@gfsdeliver.com +44 (0)7342 885 886
It’s estimated that in 5-10 years, consumers will be shopping online more than they do in stores. This is probably not surprising, given that in 2019 the UK had more empty shops than ever before , while eCommerce continues to grow at around 20% each year – and this trend has only accelerated in recent months as lockdown left shoppers with no choice but to buy online.
But as eCommerce continues to flourish, so too does one of retail’s biggest bugbears – RETURNS.
There’s no getting around it, returns are massively important to consumers. In fact, 78% of all consumers look at the returns policy before making a purchase and 42% of shoppers have returned something in the last 6 months . And this makes sense, a good returns service gives customers the confidence to buy a product they haven’t physically seen, touched or tried on, and if consumers are unsure about a returns policy they’re unlikely to take a risk and will shop elsewhere.
But returns can have a huge impact on the bottom line, which is why it’s critical to balance the customer experience, with the cost and operational impact.
Returns cost UK retailers a whopping £60bn a year, and when 35% of shoppers deliberately over-order, returns can seriously affect the bottom line .
The problem is that typically retailers have little visibility or control around what’s being returned, why, and when. Consumers can send back a return, and retailers don’t know what products will be returned, the condition they’ll be or the cost of delivery – until the return has already happened.
This makes it difficult to plan and manage the reverse supply chain, and retailers often end up playing ‘catch up’ with their returns. This means it can take time to get resaleable goods back in stock for other customers to buy, so retailers miss out on future sales.
These challenges around returns are amplified when it comes to international returns. Customs documentation, Duties & Taxes, as well as differences in local customer expectations and preferences, can make returns a very complex and expensive endeavour.
Returns can have a direct impact on conversion rates and repeat purchases, especially as consumers now expect the same convenience with returns as they do with delivery, with next day and even same day delivery continuing to grow in popularity.
Whether it’s the returns policy on the website, or a previous returns experience, returns are a key deciding factor when a consumer is choosing where to shop.
What’s important to consumers when it comes to returns?
Above all, returns need to be easy, convenient – and fast. Customers need peace of mind that they can easily return goods and get their money back quickly.
This is what will give them the confidence to buy, even if they’re not sure about a product, and this trust can convert a first-time customer into a loyal customer.
Returns are even more critical to your international customers – especially when buying online from overseas already feels like a bit of a risk. But the challenges around returns are magnified when it comes to cross-border logistics.
Every country has its own preferences and expectations when it comes to shopping online, delivery and returns – so it’s important to tailor your returns to each local market.
For example:
With cross-border returns, also comes the added challenge of Duties and Taxes. 68% of all consumers worldwide check to see if there will be any additional taxes to be paid . Using a DDP (Duty Paid) option is a way to remove this sales barrier, but this can be more time-consuming and costly for retailers – with many choosing to leave it up to the consumer to resolve themselves, which doesn’t make for a positive shopping experience.
Choice, flexibility, convenience, speed, visibility – this is what shoppers expect from a returns service, and this is mostly because this is what they get when shopping with a Tier 1 retailer. But businesses like these have huge budgets, sophisticated technology, robust infrastructures and access to an endless number of services – something that is out of reach for many growing businesses. It’s vital, therefore, that businesses find affordable solutions to deliver a returns solution that can compete and provide a flexible and seamless full-loop outbound and inbound shopping experience.
That’s why GFS is launching Global Returns Pro, the first choice for expanding eCommerce businesses wanting a fast and affordable solution to simplify global returns and give customers a high-end experience, without the high-end cost.
Click here to find out more and take advantage of our early-bird launch offer!
i – https://www.bbc.co.uk/news/business-49349703
ii – https://www.statista.com/statistics/288487/forecast-of-global-b2c-e-commerce-growth/
iii – GFS/IMRG Consumer Home Delivery Report 2019/20
iv – ZigZag 2020
v – ZigZag 2020
vi – GFS/IMRG Consumer Home Delivery Report 2019/20
vii – IMRG Returns Review 2020
As more businesses begin to re-open their doors, life is edging its way back to some kind of normal, but the reality is we don’t know what “normal” will look like in 1 month, 6 months or even 12 months’ time – what we do know is that businesses are likely to feel the impact of COVID-19 for quite some time.
It’s clear that eCommerce has experienced a surge in demand. As the country battened down the hatches back in March, consumer habits shifted dramatically, with 37% of us shopping online more than ever before*.
In fact, eCommerce sales soared to a massive 10-year high, as consumers were forced to do the majority of their shopping online for the first time ever.
The hike in demand put many retailers in a delicate situation, having to balance unplanned peak-level order volumes, with social distancing in the warehouse, as well as delays in the supply chain and carrier capacity issues.
Many businesses either had to reduce staff numbers quickly or pause trading altogether. Even household names like Next and TK Maxx took the decision to completely cease selling online until they could guarantee the safety of their staff – a completely unprecedented move.
Even retailers that were able to continue “business as usual” were forced to advise delays of up to 10 days or more for delivery – timeframes that have really been unheard of in the UK this side of the 21st Century.
Some companies looked for inventive ways to continue to connect with customers and recreate the in-store shopping experience. John Lewis launched a ‘virtual services’ hub so that shoppers could book one-on-one video appointments with retail experts, who could help with setting up nurseries, interior design and personal styling. Curry’s PC World launched a video service so they can help online customers make informed choices when buying electronics. Retailers who didn’t sell online before also turned to delivering to keep their businesses afloat.
The businesses that have managed to maintain consistent service levels and sales, have been those that allowed for some flexibility to pivot their business model and adapt to change quickly.
We saw shops open on 15th June and thousands of shoppers rushed back to the high street, with mile-long queues and waiting times of up to 2 hours. But let’s not jump to conclusions. While people may be quite happy queuing in sunshine at the moment – will they do the same in the rain? The likelihood is the novelty will wear off quickly!
While many jumped at the chance to get out and hit the high street, others are still more apprehensive. We also can’t forget that many people will be recovering financially from being on furlough and may be nervous to spend – May saw a slight dip in the rate of growth for eCommerce compared to April (96% vs 83%), perhaps down to the fact that shoppers stopped panic buying and became more cautious of their spending. But these are still massive numbers regardless.
eCommerce has been growing steadily for the last 3 years, hovering at around +20% YoY. The COVID crisis has simply accelerated the rate of growth ahead of time, a trend that we see continuing as consumer habits have shifted.
We will probably find that key verticals traditionally considered as instore purchases, such as food, flowers and wine, health and beauty, may find that shoppers continue to buy online which could result in a permanent shift of business model for sectors such as these.
And as retail continues to lean online, e-fulfilment will become a core focus, with many businesses re-prioritising the purpose of their store estates and delivery strategy – especially considering that the value and importance of delivery has now been brought front of mind.
As Andy Mulcahy, Strategy and Insight Director at IMRG said recently: “We are also starting to see a differential by retail tier, with mid-market losing out to budget retailers, a trend to watch as consumers seek value for money in uncertainty, however, on the other hand we are likely to see consumers looking for brand trust and quality. This can result in a squeeze in the mid-tier where appealing to both needs has been traditionally harder to balance. Retailers will need to listen to their customers, and find new ways to become increasingly transparent, flexible and innovative in order to navigate the rocky and uncertain road ahead.”
Whatever happens, it’s clear that we are in a constant state of flux and uncertainty – making it difficult for businesses to plan and forecast as they typically would. And soon we’ll be facing PEAK and BREXIT. Logically the businesses that have the flexibility and agility to react fast, with a focus on contingency and cost control will be the ones most likely to not only survive, but thrive.
This is no different to how businesses should be looking at delivery. Delivery is one of the most important parts of the customer experience and multi-carrier delivery not only gives retailers the ability to switch carriers, but also strike the right balance between performance, service and cost. By expanding delivery, it makes it possible to offer customers wider choice of delivery and service consistency – which will especially be important in this competitive climate. While customers may have been more tolerant over the last few months – don’t be fooled, a good customer experience will always be a huge sales motivator.
At GFS, we give retailers flexibility and contingency by offering single access to the widest range of global multi-carrier services for delivery and returns with a seamless customer experience – no matter what happens.
Make sure you always have a Plan B – Watch this video to find out how!
Or contact us to see how GFS can help prepare your eCommerce business for every eventuality.
| GFS eCommerce Economy | |
| France, Germany, Austria, Benelux | Monday 16th December |
| Rest of Europe | Wednesday 11th December |
| Rest of World | Saturday 7th December |
| GFS eCommerce Plus | |
| Ireland | Thursday 19th December |
| Germany | Wednesday 18th December |
| Rest of Europe | Tuesday 17th December |
| Australia | Monday 16th December |
| Canada | Wednesday 18th December |
| Middle East | Tuesday 17th December |
| Latin America | Friday 13th December |
| Asia | Monday 16th December |
| Africa | Monday 16th December |
It’s the most wonderful time of the year but along with the festivities, online retailers are bracing themselves for peak season.
With next day now an expected delivery option, each year shoppers confidently place orders closer to Christmas Day. However, alongside this comes stress and disappointment if carefully chosen Christmas gifts don’t arrive on time. Whilst this is not always at the fault of the retailer, consumers often do blame retailers, which then plays a major role in whether they choose to buy from a particular retailer again.
How can you manage expectations and keep customers happy, so they keep coming back to buy throughout the New Year?
We know that customers want choice, and offering that choice is even more important when it comes to Christmas. Customers want to be able to get a package at a certain time or pick up from a place convenient for them to ensure they have presents ready for when they need them. Giving them this choice helps them feel in control, which at a stressful time for consumers makes their customer experience even better.
Offering a range of delivery methods and dates also means you are able to spread the demand across numerous carriers, which offers better contingency and enables more planning rather than stretching the traditional delivery model to breaking point. By giving customers the choice of a time or pick up from a different location, you also increase first-time delivery success, minimising the need for re-delivery attempts and taking the strain away from the carriers.
Managing expectations is really important for online retailers. It’s important to have a set date for the last orders so that you can guarantee that parcels will reach them by Christmas. This should be made very clear on your website so it’s immediately visible on all pages, and also reiterated when people select delivery options in the checkout.
Being upfront about delivery lead times ensures that you don’t disappoint customers and lose their future custom. Communicating it via a countdown on the website also highlights urgency pushing them to straight away rather than thinking about it and coming back at a later date.
It’s important not to over promise. Even if you can’t deliver on time or can’t offer fast delivery, its important to be clear rather than letting customers down at the and damaging your reputation.
Increasing your internal efficiency is important to ensure your fulfilment operation doesn’t get snowed under when it gets to crunch time. Your despatch technology needs to be agile so that you can scale up and down based on fluctuating demand during the busy season. Make sure you have the resources and capacity in place to handle increased demand, so that peak runs as smoothly as possible, with minimal stress or risk.
Even with all the planning, there are things that can go wrong over Christmas at the last minute. Goods might not arrive on time, carriers can run over capacity, or bad weather can strike.
Make sure your customer service strategy is ready to handle the queries and demands of your customers. Keep customers informed and updated along the process to ensure they are kept happy even while waiting.
GFS can help you at peak times like Christmas through integrated technology that covers everything from point of sale to delivery and back again. Whether it’s adding delivery options for our customer, or handling problems with specific carriers that let you down, GFS can help with it all. Contact us now to start your journey to easier peak times with GFS.
Whether it’s prompt arrival, great customer service or plenty of choice, delivery can be the difference between a customer abandoning or repeating a purchase.
Customers shop online due to the convenience of being able to spend time choosing products in their own home. That desire for convenience also extends to delivery. Whether it’s picking up from a place that is close to work or home, or choosing a day or time that they know they will be in. The more choice and flexibility you can offer, the more likely they are to confidently commit to their purchase. With 40% of all abandoned carts occurring because of lack of convenient delivery options^, we know that delivery choice is of great importance.
Find out how GFS Checkout can offer an easy way to offer more options.
Once an order has been despatched, customers like to be kept updated on the progress of their order. When asked in this year’s Consumer Home Delivery Review, 89% of respondants said they want delivery information once their order is in motion. The most important updates are relating to problems with their delivery – anticipated delays or failure to deliver – as well as confirming the expected time slot. Notifications such as these manage expectations and help consumers ensure they are available when their delivery is due, which helps to reduce the number of delivery attempts and increase customer satisfaction.
The environment is one of the biggest issues in the world today and this will inevitably have an impact on the carrier industry as consumers increasingly look for ways to reduce their carbon footprint – as detailed in our blog.
43% of brits say that they are more likely to shop with a rival retailer if they offer more sustainable delivery options.* These include more consolidated delivery approaches, such as click and collect or pick up/ drop off points. For those using such services, there is an 80% reduction in delivery vehicles on the streets, improving fossil fuel emissions.** Communicating this to consumers when choosing their delivery option will be important to make sure people are aware of how they can help reduce their carbon footprint.
Customers are now beginning to look for a more personal experience, with 15% of customers said they expect online providers to remember them and tailor their delivery around their usual or preferred arrangements.*
79% of consumers also say that they want eCommerce websites to offer a delivery loyalty program.* When they shop repeatedly, they want to be rewarded, and that includes benefiting from either faster delivery or free delivery. With loyalty points or a subscription service like Amazon Prime, retailers can offer the benefits that will make consumers choose them over anyone else.
Tailor delivery to suit your customer to reduce cart abandonment, increase sales and boost customer loyalty. Find out how we can help you do this!
Online Marketplaces are fast becoming one of the most popular ways for consumers to buy online, accounting for 52% of global online sales. It’s increasingly important to step into the developing world of online marketplaces in order to grow international sales. Having a presence on different online marketplaces alongside your own website means you can ensure you don’t miss out on any key opportunities.
Delivery is a key driver in how marketplaces, such as Amazon, continue to blaze ahead and grow. Innovations in this space continue to push the boundaries of delivery, offering customers faster and more convenient delivery options than ever. Amazon especially makes headlines for its revolutionary shipping options, with one day and same day becoming more popular, and talk of potential half hour drone deliveries in the future. Whilst these are not viable for many businesses, it shows how important delivery is to stay competitive on online marketplaces.
On online marketplaces, there is opportunity to reach more customers but with more competition from other sellers. This means that delivery could be the difference between a customer buying from you vs a competitor.
Marketplaces give customers a sense of trust and confidence even if they have never bought from you before, and this trust is what will make them more likely to seek out your brand in future. When comparing online sellers, delivery can encourage more repeat purchases as consumers look to spend their hard earned money with sellers that offer convenience and reliability. A choice of delivery options, means they can select delivery to suit their lifestyle whilst it’s also important to make sure you can then deliver on your promises and orders arrive when your customer expects them to.
This is why it’s important to make sure you have the capacity and technology in place to support multi-channel order fulfilment, so you can despatch orders promptly and offer customers visibility of the parcel journey.
GFS Channel Connector can help you consolidate orders across various marketplaces to automate labelling and parcel tracking for a seamless customer experience.
Outsourcing your delivery can help you fulfil your orders and ensure you have confidence on your delivery process. Contact us to find out more about working with GFS to handle your deliveries.
When we look at the future for delivery and logistics, there is a lot of buzz around AI, automation and technological innovation. However, one subject that is increasingly important for businesses and consumers is the environment. With all the haulage and miles that go into the delivery businesses, how will these companies tackle sustainability?
One of the most obvious ways that delivery companies will look to tackle their carbon footprint is through vehicles. Haulage lorries are far behind cars in terms of innovation in electric motors, although as more cars become electric, we are likely to see more vans and lorries become electric too. Companies are also looking at switching from diesel lorries to help reduce emissions. Robot and drone deliveries are still a futuristic prospect, but another innovation that will help companies go green.
Ordering products online always raises questions around the environmental impact. However, some of the major costs and carbon outputs for delivery companies come in the last few miles of the delivery journey. When there is a failed delivery, it sets of a chain of events that involves extra miles being driven to try and re-deliver, or for the consumer to pick it up from another location. Cutting down on failed first time deliveries is a key way to reduce carbon footprint. It might seem like a hard thing to achieve, but the best way to do this is by giving customers more delivery options such as nominated day, timed delivery and click and collect. This gives customers more control over when they can get the delivery, which cuts down on failed deliveries and those extra miles.
Many eCommerce companies work with multiple carriers to get the best service for their customers. As well as being complicated and time-consuming, this means more collections, more emissions and more delivery vehicles on the already-clogged-up roads. By reducing the amount of pickups, companies can improve efficiency, and maximise delivery performance. Working with GFS enables you to simplify multi-carrier shipping with a single collection service, so you can make your deliveries greener.
Environmental impact is more important for customers, businesses and governments as global warming becomes a pressing issue. However, there are ways that delivery companies and eCommerce businesses can help reduce their own environmental footprint. Plus, with 43% of UK shoppers saying that they are more likely to shop with a retailer if they offer a greater range of sustainable delivery options, its not just about the environment, but also about retaining your customers and staying ahead.
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