Before the impact of the current economic downturn began to taper off the demand for goods delivered to the door, retailers and carriers experienced something of a boom in turnover.

However, since the world’s purse strings tightened in the last six months, shoppers are more considered in their choices and are significantly more price-sensitive. They also spend more time researching purchases and exhibit less brand loyalty than they used to be able to.

Retailers are seeing a rise in cart abandonment, with around one in three potential sales online not completed. Given that competition is fierce on ticket price as a natural consequence of poor economic circumstances, the reasons for cart abandonment are often found in those final options at the checkout: delivery and returns options.

“Of course, retailers understand that, because they’re consumers themselves,” says Bobbie Ttooulis, Group Marketing Director of GFS, speaking to Tech HQ exclusively. “Everybody needs convenience, needs breadth of options for delivery. But what prevents retailers from offering […] more options and bringing on board a new service, a new carrier, is that it means an IT integration, and a relationship to manage, another invoice, another contract…and the complexity and cost of all that is just not scalable. That’s why retailers need to think differently about how they offer multi-carrier services – it doesn’t have to mean working with multiple carriers.”

Bobbie Ttooulis, Group Marketing Director of GFS. Source: Global Freight Solutions

Understanding the changing attitudes of customers and prospects is at the heart of understanding how to bring those cart abandonment rates down. And while offering free delivery helps address cost concerns, Bobbie said it’s by no means the only factor. “It’s down to breadth of choice because you can’t second guess what [a customer’s] priority is at that moment in time, or what their circumstances are. All you can do is offer as broad enough a selection of delivery options so that whether their key driver is cost or speed or convenience, provided you try to cover those bases, then you’ve got a good chance of being able to satisfy whatever their requirements are going to be at that point in time.”

The number of preferred delivery options may come as a surprise to many. A survey of over 2,000 UK consumers conducted by Retail Economics puts the benchmark between five and six. That ideal number would give shoppers access to services from same/next day to low-cost, long-wait deliveries for items that are low priority. Returns options, too, are important. Customers often consider ease of returns as insurance; the simplicity offers reassurance that purchases are low-risk.

The technology behind offering multiple shipping options at the point of sale is relatively simple with GFS Checkout, part of GFS’ multi-carrier platform – it’s a single integration within the retailer’s existing e-commerce platform, like Magento or BigCommerce. The technology is pre-configured with 1000+ delivery options for domestic and international, and gives retailers the control to add or remove services in real-time without the need for expensive IT involvement.

Source: Global Freight Solutions

Of course, retailers could manually ‘plumb in’ other carriers’ options. But it’s not necessarily the best approach. GFS acts as a single aggregator for telemetry from multiple carriers and becomes the single point of contact between the retailer and multiple logistics providers.

A multi-carrier approach helps mitigate risk and protect service performance and customer experience by ensuring that deliveries get made, no matter what. Bobbie told us, “Having contingency in your final mile delivery process is vital. We saw many retailers get caught out when Royal Mail went on strike during Peak last year. Whether it’s a strike, bad weather, or missed collection from the warehouse – whatever the reason, you have to be confident that your parcels can get to where they need to be. Having a multi-carrier partner in the background who can switch your parcels seamlessly from one carrier to another mitigates risk and gives you peace of mind that your delivery is safe.”

Early on, we discussed price sensitivity as a large factor in cart abandonment rates. Having a bulk carrier buyer in the form of GFS means retailers can benefit from its buying power and volume pricing that probably wouldn’t be available to even some of the larger retailers in the UK. Conversely, high-ticket brands might want to offer choices that focus on convenience, delivery timing, insurance and (sometimes) discretion. Again, retailers working with a single multi-carrier partner like GFS, can access those services and more, giving them all the advantages of multi-carrier delivery without the overhead of doing it with multiple carriers.

Customer queries are also routed through a single point, with GFS representatives handling all contacts with contracted carriers. That removes the human complexity traditionally associated with multi-carrier options: who to contact, in which time zone, using which language.

The same homogeneity of systems extends to logistics operations, too, if required. “Our technology will also integrate with the standard warehouse management systems that retailers use to pick, pack and fulfil an order. It will integrate to produce the labelling. Once that parcel has been shipped, then the next leg in our technology enables track-and-trace of that parcel […] and [data] flows into customer service teams,” Bobbie told us.

Source: Global Freight Solutions

The high standards in customer care and CX established by global multinationals with comprehensive in-house logistics are now available to companies looking to differentiate themselves from competitors in these austere times.

UK-based GFS is a leading provider of managed multi-carrier delivery and returns services. They offer over 1,000 carrier services in more than 220 destinations in the UK, Europe and worldwide. GFS also offers access to 320,000 returns drop-off points and 75,000 Click & Collect locations.

Those are significant statistics for companies looking to compete with household name retailers with the funds to offer customers every convenience and broad choice of delivery and returns services.

To find out how easy it is to complement your existing logistics with multi-carrier services, speak to a representative from GFS.

The post Can you have your cake and eat it with multi-carrier shipping? appeared first on TechHQ.

The bar for online shopping experiences has never been higher than now. For the last few years, retailers have been forced to shift their focus to their e-commerce offerings just to remain competitive. According to the International Trade Administration (ITA), the UK has the third largest e-commerce market in the world after China and industry revenues are expected to have an annual average growth rate of 12.6 per cent by 2025. Customers demand more than just the convenience of browsing and purchasing products online, and this expectation is passed on to the services the retailers use.

Source: GFS

Third-party logistics (3PL) companies play a pivotal role in optimising various aspects of the logistics process, from warehousing and inventory management to transport and distribution. This means they directly impact e-commerce companies’ ability to meet their customers’ evolving expectations. It is, therefore, imperative for 3PL providers to stay abreast of the dynamic preferences of online shoppers and equip themselves with the necessary tools and strategies to facilitate clients’ requirements.

What today’s online shoppers are looking for

1. More delivery options

Offering a comprehensive set of delivery options, like same-day, next-day or nominated delivery, means that retailers can satisfy diverse preferences and provide a personalised delivery experience. A recent study from GFS found that 45 per cent of retailers see expanding delivery options as the number one way they can address customer expectations. Inadequate delivery options cost an estimated £7.2 billion in aborted transactions annually and, given the choice, 51 per cent of consumers would prefer to be given multiple delivery options, even if it meant paying extra.

2. Faster shipping

Huge e-commerce players like Amazon dominate in shipping times, but offering high-speed delivery remains a key growth driver for any merchant. A 2023 survey found that 25% of Under-45s consider delivery speed the most important when making an online purchase and choosing a delivery option. It also found that consumers across demographics rank Next Day, Nominated Day and Express Delivery as the top 3 delivery options. 3PLs must be able to offer a wide choice of fast and premium options to keep pace with industry expectations.

3. Sustainability

Particularly with younger consumer bases that are more accustomed to online shopping, sustainability and transparency are becoming more of a priority. E-commerce businesses embracing sustainability practices, such as eco-friendly packaging, carbon offsetting and supporting ethically sourced products, are witnessing a surge in customer loyalty. Prioritising sustainable initiatives not only resonates with environmentally conscious consumers, but also bolsters brand reputation and long-term growth potential, a trend that will continue as climate awareness grows.

4. Easy returns

Research has found that consumers rank a difficult returns process as one of their top five frustrations, and one in two UK shoppers are willing to pay extra for a hassle-free experience. However, it is not a priority for retailers, who view outbound delivery services as the primary focus of operations. Bridging this disconnect requires concentrating on improving the returns and inbound proposition to ultimately increase customer satisfaction and loyalty. It will also reduce the likelihood of basket abandonment due to concerns over returns.

3PLs must improve their services to remain competitive

If e-commerce businesses cannot live up to customers’ expectations, there are severe financial consequences. Research by independent e-commerce analysts, Retail Economics, found that one in three baskets are abandoned at checkout due to inadequate delivery options, resulting in approximately £31 billion per year in lost sales. But with high operational costs, lack of in-house technical skills and the multiple delivery carriers necessary to offer high-end services, retailers find it challenging to meet consumer demands independently. The same goes for smooth returns processes, as providing these involves complexities such as reverse logistics, restocking and managing inventory updates.

Many retailers focus on improving their final mile delivery and returns services by evaluating their choice of 3PL partners. It is imperative that fulfilment service providers adapt to requirements for speed, cost and sustainability, or risk losing business. They must expand the range of delivery services offered, both on outbound and inbound returns, so the luxury of choice and convenience can be passed on to shoppers. The traditional way of achieving this would be to onboard and integrate more carriers. However, it can be costly, complex and time-consuming to integrate new services into IT systems and onboard and manage new carrier partners. Plus, such an approach is challenging to scale, as every new carrier or service added has an incremental impact on operational cost, overhead and technical complexity.

A smarter way is to partner with a single multi-carrier partner that can offer a breadth of services for outbound and inbound returns and the technical capabilities for quick and easy integration. By teaming up with just one final mile service provider, 3PLs can extend and enrich their services in order to stand out. This gives access to the breadth of services required for current and future needs all under one contract, one relationship and a one-time technology integration. More importantly, such a partnership allows them to demonstrate to e-commerce brands that they understand the demands of the digital shopper for delivery choice and convenience and its impact on the final purchase decision.

Premium multi-carrier partners offer cost-effective, diverse delivery and returns options, ultimately reducing basket abandonment rates, increasing customer satisfaction and creating growth opportunities. Specialised knowledge, industry connections and economies of scale also enable them to provide a wider array of sustainable options at a potentially lower cost. Further options include electric vans, click-and-collect options and carbon-neutral shipments via offsetting programs. These cater to increasingly environmentally conscious consumers while simultaneously fostering a positive brand image.

Consider GFS

In 2024, a single-carrier approach for delivery is no longer feasible, as the dynamic landscape of e-commerce demands a more versatile and customer-centric approach. Leading multi-carrier management company GFS understands how crucial it is for e-commerce 3PLs to be able to bring their service offerings in line with consumer expectations. Doing so creates a competitive advantage for their retailer customers and themselves as service providers.

Source: GFS

As the industry’s first and now largest multi-carrier provider, GFS provides a combined offering of multi-carrier technology and multi-carrier services, all under one roof. Furthermore, their proprietary Enterprise Carrier Management (ECM) suite comes as part of the service, giving its customers the technology tools they need at no additional cost. GFS customers have access to 1000+ carrier services across more than 220 destinations, offering a diverse range of delivery options, plus automated label printing and tracking to expedite order fulfilment. Integration with major e-commerce platforms, such as Etsy, WooCommerce, Shopify, Amazon and eBay, facilitates multi-channel order fulfilment and dispatch.

GFS’ commitment to sustainability shines through via the green shipping alternatives they offer: carbon-neutral services, electric van deliveries and parcel lockers, to name but three. Additionally, an extensive network of 320,000 drop-off points simplifies returns, fostering all-important customer satisfaction and loyalty.

To find out more about how GFS can help enhance your 3PL business with multi-carrier services and technology, contact one of their experts today.

The post E-commerce retailers need to keep up with customer expectations – and, so should their 3PL providers (if they want to stay in the game!) appeared first on TechHQ.