Almost three quarters of UK consumers have yet to try out new ‘alternative’ delivery methods offered by Amazon to cut down on missed packages, according to new research.
Amazon lockers will soon be readily available in London Underground car parks so that shoppers can collect their online purchases during their daily commute.
In support of this announcement from Amazon, eCommerce solutions provider Venda, conducted research into the appetite for faster delivery in the UK, specifically asking consumers what they thought of services like Amazon Lockers and Collect+.
Key findings revealed that:
• Almost three quarters (73%) of people in the UK have yet to use an alternative delivery method such as Amazon Locker and Collect+
• The main reason for this is that a significant portion of consumers (38%) aren’t aware of where they’re local pick-up point is, with 25% not even aware these services exist.
• Of the one in five (22%) that have used alternative delivery methods, 62% said they would use it again and 48% said they found the service to be fast and convenient
• 39% of consumers would be willing to pay extra to receive their goods faster
The research largely supports the ideology that consumers welcome alternative delivery methods, more flexible shipping services and indicates that they will largely use services such as Amazon Locker’s and Collect+.
The report asserts that Amazon needs to focus on educating the majority of consumers that these services exist, and they will then grow in popularity.
Lack of information hampering take-up
The number of parcels sent to consumers using ‘alternative’ delivery methods is on the increase, with services like the UK’s Collect+ putting 13.6m Purchases into shoppers’ hands over the last year, resulting in a 92% increase in revenue over the last financial year for the business. Finding a fast, convenient and cost effective way to deliver eCommerce purchases is an area in which many businesses are trying to innovate, whether it is Amazon’s “Octocopter” drones or its more down to earth Amazon Locker service.
However, despite the apparent success of services like Amazon Locker and Collect+, almost three quarters (73%) of people in the UK have yet to use one of these alternative delivery methods. The main reason for not trying out one of these services was not knowing if there is a convenient pick-up point or locker near them (38%) or that they had not actually heard of these types of services before taking the survey (25%). On the other hand, even among those that had yet to try the new delivery options, one in five (19%) said they would like to, or are planning to, use an alternative delivery service in the future.
Of the one in five (22%) that have used an alternative method to receive their goods, 62% said they would use it again, with almost half (48%) adding that they found the services to be fast and convenient. In fact, only 6% of consumers that have tried one of these new methods said they would never want to use it again. Consumers that have experienced the service also said that they would be more likely to spend money online with a retailer that offered the service, due to the convenience (36%) it offers. Almost half (45%) also said that they felt all online retailers should make these types of services available to customers.
Speeding goods into consumers’ hands
In an increasingly competitive eCommerce landscape, where free delivery is often expected by consumers, alternative delivery methods offer businesses a faster and more convenient way to get online goods into people’s hands. They also offer retailers a potential new revenue stream for their business, with this research showing that 39% of consumers would be willing to pay a higher delivery rate for one of these options if it was faster and easier – a figure that rose to almost half (48%) of people aged between 18-24 years old.
Consumer appetite for faster and more convenient delivery methods is clearly there, with three quarters of those surveyed (76%) reporting they would prefer to use a click and collect service to get their items on the same day rather than waiting the 2-3 days for standard delivery. When asked how long they would be willing to wait in-store to collect an item on the same day as ordering it, rather than wait for a standard delivery, those surveyed said they would queue for an average of 7½ minutes. However, this varied significantly from 9½ minutes for 18-24 year olds and 8¾ minutes for those aged 25-34, to just 6¼ minutes for those over 55 years old.
Eric Abensur, Group CEO, Venda stated, “Given that speed and convenience of delivery is a prevalent concern for online shoppers, it’s not surprising that many are keen to try out these new services that promise to be faster and easier. It’s thanks to the rise of the ‘I want it now’ consumers that pureplay eCommerce brands and multi-channel high street retailers alike face a continued challenge over just how to get their goods into shoppers’ hands quickly and efficiently. Fulfilment is something that all retailers with an online presence should put at the head of their eCommerce strategy, as without a fast and efficient way to get purchases into consumers’ hands, they could end up losing revenue.”
Methodology
All figures, unless otherwise stated, are from YouGov. Total sample size was 2,340 adults. Fieldwork was undertaken between 21st-22nd May 2014. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
www.venda.com
