More than three-quarters of online shoppers in Europe are willing to exceed the minimum order thresholds if this means they will get free delivery or collection. But at the same time, 63 percent would likely switch to another retailer if they have a poor experience with delivery or click & collect.
This is according to data from a new report by JDA and Centiro. They surveyed over 8,000 consumers in the UK, Germany, France and Sweden and found out that most European online shoppers would be willing to increase their cart value to quality for free delivery of collection. This behavior differs by delivery option, as 25 percent would do so for same-day delivery and 22 percent for next-day delivery. For standard delivery, which is between three to five days, the percentage is even lower: 15 percent.
There’s also a difference noticeable among the countries surveyed. A third of UK respondents is willing to exceed the minimum order value to quality for next-day delivery, while in France, just 16 percent of respondents was willing to do so.
Despite the interest in paying more for free delivery, research shows that one in two European shoppers experienced a problem with an online order in the last twelve months. At the same time, click & collect is getting more and more popular among shoppers. About half of respondents said they used this service during the past twelve months, which is an increase of 17 percent compared to 2014.
Retailers are competing ever more aggressively for sales and offering an increasing array of fulfillment options. But delivering a high level of service in an efficient and profitable manner remains a challenge for many retailers, said Jason Shorrock, vice president, retail strategy EMEA at JDA. Last-mile issues continue to negatively impact the customer experience and customers are more willing to go elsewhere if their expectations aren’t being met. The good news for retailers is that customers appear to be willing to exceed order thresholds if it qualifies them for free delivery or collection. Now, more than ever, it is important for retailers to ensure they are offering outstanding customer service, or they risk damaging customer relationships and revenue.