Delivery logistics have become crucial to meeting the expectations of online shoppers. When done well, customers hardly notice, but when executed poorly, delivery logistics can decide whether someone will purchase again. To properly meet shopper expectations and earn their loyalty, ecommerce retailers need to adopt a customer-centric logistics approach.

But what do customers expect regarding delivery options, tracking habits, and return methods? Our latest survey has some answers. In this article, we’ll explore our key findings to see how retailers can optimize logistics and enhance the online shopping experience.

The Growing Importance of Delivery

We conducted a survey of 1,000 online shoppers in April 2024 and found that they have high expectations for delivery. It’s not hard to figure out why — Amazon has significantly upped the delivery game, setting a new standard for online retailers. In 2023, Amazon even increased its number of same-day and overnight deliveries in the U.S. by over 65% year over year.

We found that most customers (82%) were satisfied with their online order deliveries. But if something does go wrong, it’s not a good look. One recent survey found that 85% of consumers report that they will not shop with a retailer again after having a poor delivery experience.

Customer Delivery Expectations

Our survey revealed some interesting insights about delivery expectations. When asked what retailers could do to improve their delivery experience, customers placed value on the following:

  • Speed: Many shoppers desire free same-day delivery (46%) and faster shipping (38%).
  • Transparency: Customers want better tracking information (31%) and more frequent carrier updates about their order status (20%).
  • Flexibility: Flexible delivery options were important (27%), and many also desired a two-hour or less delivery window (26%).
  • Sustainability: Many shoppers want sustainable packaging (20%) and delivery options (14%).

It seems younger customers, in particular, would like to see brands step up their delivery game. The 18-39 age group scored higher than average in several improvement categories, including free same-day delivery, faster shipping, better tracking information, and sustainable packaging.

Home delivery was the most popular choice among shoppers, but more than half said they used omnichannel delivery options like in-store or curbside pickup in the past year:

Older shoppers were more partial to home delivery, while younger shoppers were more likely to embrace omnichannel alternatives. When asked what retailers could do to improve their delivery experience, shoppers 18-54 were also more likely to desire flexible pickup options like buy online, pick up in-store (BOPIS).

Buy Online, Pickup In-Store

Since many shoppers opt for BOPIS, we wanted to understand why this pickup option was crucial and how customers were using it over the last 12 months:

  • 30% used a combination of in-store pickup and curbside pickup
  • 28% didn’t do any store pickups
  • 27% mostly used in-store pickup
  • 15% mostly used curbside pickup

Older shoppers were less likely to choose a BOPIS option for their online orders, but when they did, they preferred in-store pickup over curbside. Grocery items were the most popular BOPIS orders among all age groups, with 58% of respondents indicating their likelihood to use this service for groceries.

Customers who chose BOPIS valued immediacy, convenience, and package security the most:

Order Tracking: The Power of Anticipation

The time between placing an order and receiving it is important for most customers. We found that 68% of online shoppers track their orders after placing them to stay informed on the delivery status.

Younger shoppers placed more value on order tracking. Those 18-54 were more likely to download apps to follow their deliveries, while the 18-39 age group was more proactive in making changes after they placed a home delivery order.

Returns and Customer Satisfaction

Most customers don’t return a large percentage of their purchases — three in four respondents said they return 5% or less of what they bought. However, shoppers still value a flexible return policy for peace of mind.

When we asked customers to identify their frustrations with returning products in the past year, 40% said they had no issues or problems returning products. For the rest, the top concerns were cost, convenience, and communication:

  • 19% mentioned having to pay for return shipping.
  • 15% said receiving their order credit took more than a week.
  • 14% didn’t like the inconvenience of returning an item in-store.
  • 13% were frustrated at being charged a restocking fee or high fees for return shipping.

Key finding: Younger shoppers in the 18-29 age group were more inclined to say they encountered the above challenges when returning orders.

Shoppers don’t seem to have a clear preference for how they return their purchases, as our respondents used many different return methods over the last year. However, those 18-39 were more likely to use alternative return options, such as FedEx or UPS, returning to an Amazon store location, or using a service like Happy Returns.

How to Leverage Logistics to Optimize Customer Experience

Customer needs should be the top priority as you consider how to make your shipping processes more efficient. To improve customer satisfaction, consider focusing on the following four areas.

1. Invest in Logistics

To be competitive with top retailers like Amazon, it’s crucial to invest in robust logistics and delivery networks that can handle rapid turnaround times. Our survey confirmed that free same-day delivery and faster shipping are the top improvements customers want to see in their delivery experiences. Consider also providing expected (and accurate) delivery dates on product pages as another way to entice customers to buy.

2. Consistent Communication

Tracking is another valuable perk that shoppers want. Don’t be afraid to over-communicate with customers throughout the shipping process, letting them know when orders have shipped and if the expected delivery date has changed. Shoppers ultimately desire transparency from retailers, and most consider no news worse than bad news when it comes to shipping updates.

3. Multiple Delivery and Pickup Options

In addition to delivery notifications, it’s necessary to provide shoppers with myriad delivery options, if possible. While the majority prefer home delivery, omnichannel is still a big draw, especially if same-day home delivery is not an option. In-store and curbside pickup offer shoppers more flexibility. It’s also important to clearly communicate each delivery option and the process for each pickup method to minimize confusion and help customers make the best choice for their situation.

4. Hassle-Free Returns

To keep customers happy, it’s essential to have clear and simple return policies. These should be easily accessible on your website or app, but an email reminder to the customer after purchasing wouldn’t hurt. Customers value free and efficient returns. Offering multiple return options allows you to cater to the varying needs of shoppers, whether that be immediately exchanging the item in-store or the convenience of a pre-paid shipping label from their preferred carrier.

Final Thoughts

Logistics is a crucial part of the online shopping experience, and it greatly effects customer loyalty. Our free Shopper Insights Brief provides actionable strategies for your fulfillment processes. Download it today to gain an edge by understanding and catering to these shifting consumer expectations.

Are you interested in collecting customer feedback to improve your customer experience strategy? Book a demo with us at Bizrate Insights to get started.