Last-mile delivery wars are front and center during peak season, but the battle can be lost at any point during the year when customer expectations are not met.
The retailer bears the brunt of a poor customer experience. A bad delivery experience will push 83% to shop elsewhere, according to Convey’s survey. This is a sobering fact for all companies competing for the just-under-70% chunk of the market that is not going to Amazon during the holidays.
The biggest obstacle to meeting delivery promises are costs. Faster comes with a price. Has Amazon figured it out? Depends.
Amazon is spending more to meet tight delivery windows and that impacts margins. Amazon is absorbing the smaller margins, but where it is winning is in setting the bar (that few can meet) for customer expectations and price. Walmart and Target followed Amazon’s steps.
Outspending Amazon is not an option for most businesses. A better strategy is to involve the tech side to collect and analyze data and take that information to revamp or streamline processes, Convey noted. Avoid trying to make good on a botched delivery. Make it right from the start.
This article was originally posted on 11/4/19 on Supply Chain Dive.
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