Delivering oversized items is usually a headache for businesses, but it doesn’t need to be. In fact, for those who can get it right, it can even set them apart from the pack. A survey by Roadie and Supply Chain Dive’s studioID of 150 retailers, e-tailers and other businesses found that over one-third (36.7%) have restricted delivery for certain oversized items — leaving thousands of dollars on the table for those who can succeed.
Retailers who can deliver oversized packages as effectively and efficiently as smaller packages are poised for growth, as the connection between a good delivery experience and increased customer retention, loyalty and sales go hand in hand.
Research shows that delivery experience is the most common factor in dictating a consumer’s experience with and likelihood of returning to a brand, with a consumer study finding that 98.1% of respondents say delivery experience affects their brand loyalty. Another study found that 84% of consumers will not shop from a brand again after just one poor delivery experience, and 94% will choose a different e-commerce brand based on the collection or delivery options available.
Even more compelling is that, according to Capgemini, 74% of customers who are satisfied with the delivery service provided will increase their purchase levels with the brand by 12%.
And while getting this right with big and bulky delivery is a challenge, it is worth pursuing. Oversized deliveries — items 50 or more pounds and/or 48 or more inches — account for a significant piece of many retailers’ inventories. Among those surveyed by Roadie, just over a third say that 11% to 20% of their goods are oversized, and another 44% say “oversized” describes 21% or more of what they sell. Furthermore, 93% also agree that their oversized items tend to be high margin.
Retailers who restrict or ignore these items not only fail to meet consumer expectations around delivery but also lose out on sales to competitors. Those who prioritize improving rather than restricting oversized delivery stand to win in the long run.
Solving the challenges around big and bulky delivery
Challenges around customer experience and logistics are the two biggest hindrances in delivering oversized packages. Their non-standard dimensions often result in slower movement and higher costs, and for many retailers, these challenges are enough for them not to offer oversized delivery at all. Respondents of Roadie’s survey said that excessive damage is the leading reason for making such a decision (55%), followed by managing multiple providers (54%) and high delivery costs (51%).
Roadie’s newest solution for big and bulky delivery, RoadieXD™, addresses these challenges by combining cross-docking with on-demand last-mile delivery. This allows retailers to offer ultrafast delivery speed, visibility and control over delivery windows that meet their consumers’ demands without the need for multiple transportation partners juggling a complex logistics network.
While traditional fulfillment and delivery systems are built around standardization and efficiency — something that doesn’t place nicely with big and bulky items — outsourcing cross-docking to a third party like Roadie simplifies the process, leading to significant gains in productivity. Among the respondents to Roadie’s survey, 82% already leverage third-party providers to improve big and bulky logistics and delivery. Nearly half (46%) found this created efficiencies and freed up warehouse space by removing awkward and space-consuming items from their DCs. Most impressively, respondents report seeing an increase in productivity of 62% by outsourcing pre-sorting, cross-docking and delivery of bulky goods to suitable providers.
However, outsourcing cross-docking alone won’t solve the industry’s problems. By combining Roadie’s solutions for oversized delivery and crowdsourcing, retailers can instead leverage a single provider to offer same-day delivery across a wide range of SKUs with minimal cost and complexity.
With Roadie, retailers no longer need to be restricted by dimensions when offering a fast and positive delivery experience every time.
