Ecommerce is set to have another strong year in 2024, but meeting consumer demands won’t be any easier. Rising prices and global pressures have created a more cautious, discerning consumer. While they are still buying online, their expectations will be much higher. Retailers and brands should expect consumers who are more thoughtful and intentional about where and how they spend.
Mintel’s 2024 Global Consumer Trends reports that consumers are redefining value and what indicates quality in a product or service. The report found that as “budget pressures force tighter trade-offs, consumers are becoming more realistic in their search for value as they strike a balance between quality received and cost incurred.”
Experts predict that as consumers reevaluate how they spend their dollars, a greater mix of choices will be necessary to meet demand both online and in-store as shoppers hunt for the best deals.
This creates a new opportunity for retailers to compete in this ultra-competitive landscape. Those that offer a greater selection of flexible delivery options will win out. To do this, they must be willing to invest in the right technology and delivery partners to succeed. This is even more important as established logistics companies are already a step ahead. Logistics companies are stronger than ever, with established companies increasingly investing in automation and robotics to handle higher volume and offer customers greater efficiency.
As consumer expectations around online shopping continue to change as fast as retailers can adapt, it’s important to stay ahead of these trends. Here’s what consumers really want out of retailer deliveries in 2024.
Fast delivery will remain a priority
Fast delivery isn’t the only decision-maker for today’s consumer, but it is still an important one. When choosing where to shop, speed of delivery is the No. 2 most popular factor for consumers, with only free shipping selected more often. On top of that, 55% of shoppers say they’ll change retailers to get their orders delivered quicker, and almost half of shoppers abandon their online carts if shipping times are too long or aren’t provided.
Despite this reality, most small retailers are unable to deliver on this promise, opting to deliver in a more traditional four to six days. By comparison, in 2022, Amazon customers received their orders within 1.9 days on average, and orders from Target and Walmart arrived in 4.4 days.
Research from the CMO Council finds that retailers that struggle to meet the demand for fast home delivery blame outdated supply and delivery chains, a lack of order fulfillment centers near customers and the high capital costs of fixing these problems. Only 3% of survey respondents said their companies are very capable of meeting current expectations for fast home delivery.
Meeting consumer expectations on delivery will require big changes and investment, but the ultimate result is good for the bottom line — and supply chain professionals know it. A third of respondents to the CMO survey believe they could increase revenue by more than 20% if they instituted same-day delivery; another 51% estimate that same-day delivery would increase revenue by 10 to 20%.
According to a recent survey of supply chain leaders by Roadie and Supply Chain Dive’s studioID, 80% reported an increase in revenue as a result of same-day delivery. For nearly two-thirds of respondents, revenue rose by 6% or more; approximately 30% saw an increase of more than 10%.
Interest in sustainable shipping will grow
Free and fast shipping isn’t all that matters, however, as younger consumers are more willing to make trade-offs that align with their social conscience. Conscious consumerism will be a key theme this year, with many shoppers willing to pay a premium for more sustainable practices. A consumer survey found that 76% of respondents would pay an extra 5% for more sustainable shipping. Another 79.6% will wait at least one day for their online order if it is shipped more sustainably, and 69% said sustainable shipping has influenced their past purchases.
But retailers should be careful to avoid any signs of greenwashing or offering what consumers feel is an inauthentic sustainability program. Research from Mintel found that 60% of U.S. consumers think many companies are just pretending to be sustainable.
Last-mile delivery logistics make up as much as half of the associated vehicle emissions, meaning the last mile should be a major focus for many retailers looking to deliver quickly without negatively affecting their environmental impact.
Consumers are demanding more choices and control
Retailers also need to prioritize the growing demand to shop across channels in 2024, with a report from Retail Week finding that 70% of consumers want more flexible delivery options. Flexibility could look like more choices around delivery time or locations, greater visibility and communication about the delivery or, for retailers with physical locations, adding options to buy online, pick up in store.
Beyond delivery, however, consumers also are changing their preferences around where they make purchases online. A 2023 holiday report projected that online marketplaces would generate nearly $253 billion in sales globally during the 2023 peak season. Another report found that 73% of retail consumers shop across multiple channels, and retailers who use three or more channels increase customer engagement by 251% more than single-channel retailers.
This means offering a seamless omnichannel experience should be top of the list this year. From the initial research stage and purchase to delivery (and potentially returns), the customer experience should be as simple as possible.
Unlocking a better omnichannel experience starts with focusing on fulfillment, social commerce and customer service. Offering consumers flexible options around how, where and when they receive a delivery gives them a sense of value and control necessary for retailers to remain competitive. Delivery flexibility should cater to different customer needs, while also offering transparent communication with real-time updates and tracking tools that keep customers in the loop.
Choosing a delivery partner like Roadie with sophisticated logistics management technology is a great place to start. With the largest local same-day footprint in the country, the Roadie crowdsourced platform gives you access to a network of 200,000 independent drivers that spans 29,000+ ZIP codes and reaches 97% of U.S. households with ultrafast, reliable delivery — giving your customers the choices, quality and flexibility they crave in 2024.
