New Research Finds E-Commerce Retailers Could Face Attrition Due to Poor Delivery Experience

• A third of people who shop online have experienced an issue with parcel delivery over the past 12 months
• 1 in 4 deliveries actively discourage retailer recommendations

Poor delivery experiences will significantly impact whether a recipient recommends a retailer, with almost three quarters (72.5%) of customers who shop online saying they are likely or very likely to stop recommending a retailer following a poor delivery experience. This is according to a new survey by delivery software company Circuit.

While e-commerce has been on the rise, 2020 further accelerated the growth and reliance on ecommerce and the data shows that this is a trend that is here to stay with 85% of those who shop online saying they will shop either about the same or more frequently online over the next 12 months.

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While this brings great opportunity, retailers must be aware of delivery issues and their impact. A third (33%) of people who shop online have experienced a delivery issue in the past 12 months. Consequently, almost 1 in 4 (23.9%) of all deliveries result in a customer being likely to stop recommending the retailer.

Furthermore the research found that the problem is bigger than many retailers realise as nearly a quarter of customers (22.5%) who order goods online, experience delivery issues – but don’t complain. This highlights that there is a delivery feedback gap between couriers, retailers and recipients where issues cannot be fixed as retailers are unaware of any problems with delivery experiences.

Jack Underwood, Circuit CEO & co-founder said: “Our research highlights the huge impact last-mile delivery has on retailers and their customers’ loyalty. These results come at a crucial time for the industry. As stores reopen following a tough year, online retailers and couriers must ensure that they are doing all that they can to guarantee the best customer experience.”

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