E-commerce pressure generating unprecedented pressure for shipping sector

Online spend increasingly dramatically this holiday season, as are customer expectations of reliable and cost-effective delivery

A survey conducted by Loqate of 1,200 American consumers’ purchasing intentions for the 2020 holiday period has found that there is an exponential increase in pressure in the e-commerce delivery sector. This is due to 73% of American consumers planning to do their holiday shopping online, and 26% expecting to ship gifts directly from retailers to friends and family, even though 88% expressed concern over packages arriving late.

Spend is also going to remain stable over the period, with 42% aiming to spend the same amount on holiday gifts as last year and 19% to spend more.

Furthermore, free shipping is often a necessity to drive sales, as this and promotions remain the biggest factors driving purchase decisions, followed by customer reviews and recipient wish lists.

This shipping explosion will stretch overseas, as 43% to plan to send gifts internationally, adding to the strain.

Consumer expectations are high for retailers to get holiday delivery right. Consumers are willing to wait for their packages, but not too long says the survey. Fifty-seven percent of consumers say they would avoid using a retailer again if they had a negative delivery experience.

Consumers are also concerned over theft and fraud during this time of increased online shopping.  The survey found that 86% are worried about stolen packages and 50% are concerned fraud attempts will increase this season, with baby boomers being the most concerned. Nearly half of urban shoppers, but only 30% of rural shoppers, are expecting fraud.

"With high consumer expectations, a surge in online shopping and more shoppers planning to ship gifts directly to recipients, retailers that minimize checkout friction and deliver a seamless experience from cart to delivery have an opportunity to increase revenue and build customer loyalty," said Matthew Furneaux, director of Location Intelligence at Loqate.

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