Australian retailers must offer better delivery and returns or risk alienating customers
Australian online retailers are failing their customers by offering inadequate delivery services, and they must improve delivery options or risk alienating customers, according to last-mile delivery solutions provider, Blackbay.
Blackbay partnered with MeeMeep.com to complete the recent Blackbay and MeeMeep Consumer Delivery Preferences Report which consisted of 1212 respondents. MeeMeep is an Australian start-up delivery company that creates joyful delivery experiences through leveraging innovative technology and a curated fleet of drivers and empowers customers to transform the last-mile delivery fulfilment industry.
The report reveals that just 17 per cent of respondents indicate that parcel deliveries meet their expectations, with regard to being on time and undamaged. Despite this, 89 per cent of respondents said they were ‘satisfied’ with their delivery experience.
Nigel Doust, CEO, Blackbay, said, “This conflicting statistic shows there is confusion as to what makes a good delivery experience. Customers seem to accept that mediocre services are the norm, which provides a clear opportunity for Australian online retailers to differentiate themselves by providing a far superior delivery experience. Currently, Australian online retailers are failing their customers when they could be doing so much more.”
Blackbay’s global last-mile software solutions are specifically developed for the transport and logistics (T&L) marketplace.
Justin Williams, CEO, MeeMeep, said, “Currently, Australian consumers appear to be unaware of the enhanced delivery options offered in other regions. This report clearly shows that there is a demand for dramatically better delivery experiences than Australian’s tolerate today. MeeMeep’s mission is to resolve the experience gap and provide joyful delivery experiences to everyone, everywhere, every time.”
“MeeMeep believes that the most powerful and impactful online retail experience really starts with the ‘click to buy’ button. That is where the really hard work starts and the average retailers hurt their customer and their brand - and the really great retailers excel.
“Retailer brand perception and preference is truly crystallised through the delivery experience and the resultant emotions felt by the customer. Unfortunately, this crucial element of the retail experience is often neglected or forgotten. This creates an opportunity for the more capable retailers.”
A significant delivery dilemma across the globe is that 85 per cent of consumers prefer packages to be delivered to their homes, with the ability to sign for them, but 32 percent say they are not normally home to receive deliveries.
The report also showed that more than half of online shoppers consider the ease of initiating returns very important, The UK Consumer Home Delivery Review 2016 conducted by Blackbay and International Media in Retail Group (IMRG) found similar results in the UK. The ability to easily and quickly return packages is an issue for customers. Only 61 percent of respondents were satisfied with the returns service they receive.
“This is the 7th year Blackbay and IMRG have executed the report and each year the importance of an improved returns process increases,” commented Doust.
Australians can learn from the mistakes retailers have made in other regions by prioritising the returns process. This can also achieve better costs savings. When returns are collected sooner, and refunds issued promptly, the retailers can then resell those goods more quickly while enabling the consumer to buy replacement goods faster.
Doust said, “By giving consumers access to the same collection options as those offered for delivery, retailers can streamline customer experiences both in purchasing and returning goods. That’s a win-win situation.”
Online retailing is increasingly competitive and retailers must find ways to differentiate themselves. One way to do that is to offer better, individualised delivery and returns options. To do this successfully, the T&L industry needs to deploy scalable delivery solutions.
The report is available for download via http://www.blackbay.com/images/delivery-connect/BlackbayMeeMeepReport2016.pdf
Rainmaking + ESG Launch Supply Chain Resilience Accelerator
Rainmaking, one of the world’s leading corporate innovation and venture development firms that create, accelerate and scale new business, has partnered with Enterprise Singapore (ESG), a government agency that champions enterprise development, to launch Singapore’s first ‘Supply Chain Resilience Accelerator’.
The new programme will unite startups and enterprises to boost scalable technology solutions that help fuel supply chain resilience by addressing pain points in transport and logistics.
Over the last 13 years, Rainmaking has launched 30 ventures totalling US$2bn, including Startupbootcamp. Having invested in over 900 startups that have raised more than US$1bn, Startupbootcamp is one of the world’s most active global investors and accelerators.
The new programme looks to help build more resilient supply chains for Singapore’s burgeoning network of startups by leveraging its advantageous position as a global trade and connectivity hub. As part of the Supply Chain Resilience Accelerator programme, no less than 20 startups with high-growth potential will have the opportunity to become a part of Singapore’s vibrant ecosystem of startups.
Calling Supply Chain Solution Startups!
The programme will kick off with an open call for startups who specialise in supply chain solutions for end-to-end visibility, analytics, automation and sustainability.
Applicants will then be shortlisted and receive nurturing from Rainmaking, fostering valuable engagements with corporates to drive scalable pilots with the aim to stimulate investment opportunities.
“Covid-19 exposed the fragility of global trade, and the Supply Chain Resilience Accelerator is our opportunity to spot weak links and build back better. Piloting outside tech can be an incredibly efficient way to test viable solutions to big problems, provided you de-risk and design for scale. Our programme does precisely this by helping corporate decision-makers and startups to work on compelling business opportunities, anticipate operational risks, and ultimately co-create solutions fit for wider industry adoption,” said Angela Noronha, Director for Open Innovation at Rainmaking.
Pilots will run from Singapore, with the objective that relevant organisations may adopt successful solutions globally. To that end, Rainmaking is currently engaging with enterprises specialising in varying industry verticals and have expressed interest in partnering.
“Even as we continue to work with startups and corporations all over the globe, we are so pleased to be anchoring this program out of Singapore. With a perfect storm of tech talent, corporate innovators, and robust institutional support, it’s the ideal launchpad for testing new solutions that have the potential to change entire industries. We look forward to driving the transformation with the ecosystem,” added Angela Noronha.
One of the first selected corporate partners is Cargill, a leader in innovating and decarbonising food supply chains.
"Cargill is constantly exploring ways to improve the way we work and service our customers. Sustainability, smart manufacturing and supply chain optimisation are key areas of focus for us; exploring these from Singapore, where so many key players are already innovating, will help us form valuable partnerships from day one. We look forward to joining Rainmaking and ESG on this journey to work with, support, and grow the startup community by keeping them connected to industry needs,” said Dirk Robers, Cargill Digital Labs.
In order to raise awareness on the importance of building resilience and how technology can be leveraged to mitigate risks of disruption, industry outreach efforts will include fireside chats, discussions and demo days.
In July, Rainmaking will host a virtual insight sharing event for innovation partners as well as a ‘Deal Friday’ session that connects businesses, investors, and selected startups with investment and partnership opportunities.
Programme events will also benefit Institutes of Higher Learning by offering exposure to how advanced practitioners leverage new technologies to transform traditional supply chain management and share real-world case studies and lessons learned, better equipping next-gen supply chain leaders.
“As an advocate of market-oriented open innovation, we welcome programmes like the Supply Chain Resilience Accelerator, which aims to help companies resolve operational pain points, strengthen supply chain resilience and spur growth in a post-pandemic world. With a strong track record in driving open innovation initiatives for the transport and supply chain industry, we believe that Rainmaking’s in-depth knowledge of the ecosystem and network of global partners can complement Singapore’s efforts in accelerating our business community’s adoption of tech-enabled tools, to better manage future disruptions and capture opportunities arising from shifts in global supply chains. This will in turn help to strengthen our local ecosystem and Singapore’s status as a global hub for trade and connectivity,” said Law Chung Ming, Executive Director for Transport and Logistics, Enterprise Singapore.