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Why delivery services are key to e-commerce success

In the high-stakes world of e-commerce, nothing stays the same very long. Our new E-commerce Trends Report shines a light on the growing trend of social media shopping and the integral role delivery services play in converting browsers into buyers.

What do online shoppers want?

Online Shopping

E-commerce businesses work hard to give online shopping the best experience possible, but success ultimately lies in getting them to click that all-important BUY button. Knowing how to make this happen means understanding what consumers want.

And that’s the real challenge. How do e-commerce businesses keep up with the latest trends? How do they know what factors are transforming online consumer behavior? And perhaps the most crucial question of all: Why do shoppers abandon their carts?

To get answers, DHL eCommerce conducted a comprehensive survey of 12,000 e-consumers in 24 countries. The initial results are eye-opening, revealing the latest trends in how people around the world are browsing and buying online. The answers also tell us what changes online shoppers want to see.

48%

of online shoppers will abandon their carts if they don’t like the delivery options

USD 2 trillion

IS THE PROJECTED VALUE OF SOCIAL MEDIA SHOPPING IN 2025, OR 28% OF ALL ONLINE RETAIL SALES

41%

of online shoppers don’t complete their purchases because delivery is too expensive

77%

of social media shoppers want to know the delivery provider before buying

Source: DHL E-commerce Trends Report, Deloitte - February 2023

Online shoppers want options

What drives today’s online shoppers to complete their purchases is often directly related to what happens after they click the BUY button: the delivery options and services the e-commerce marketplace offers.

Costs

It starts with cost: People want free delivery and won’t hesitate to abandon their shopping carts if the shipping costs are too expensive. We found that 54% of shoppers are frustrated by the high price of shipping.

Returns

Returns are another potential dealbreaker: 37% of shoppers are unhappy about paying for returns. 

Trust

Consumers also care about who delivers their goods – they want a delivery company they can trust. In our survey, 65% of shoppers say it’s important to know who will deliver their package before they make a purchase. In some parts of the world, that figure is much higher, such as in Thailand (86%), Argentina (77%), Turkey (76%) and India (75%).

It all comes down to options. The available delivery options are likely impacting sales more than many e-commerce businesses realize. Plus, more and more consumers are browsing and buying on social media apps, where they can immediately share their experiences with the world. 

If you deliver, they will buy

Increasing e-commerce sales can depend greatly on understanding and leveraging these insights. Even if a company has a great product, improving delivery services could encourage more shoppers to click BUY.

Costs

At DHL, we know too well how much logistics costs – and that the last mile from the warehouse to the customer is by far the most expensive in the supply chain. What can online shops do about it? Consider incorporating delivery charges into product prices with an option to pay for a speedier service. We found that 46% of shoppers prefer to pay for delivery that way. 

Returns

In our survey, nearly half of shoppers (48%) said free returns would improve their online shopping experience. Working with delivery providers with return logistics operations in place can help e-commerce businesses manage the return process efficiently AND recover real value from returns. #CircularEconomy

Trust

People want peace of mind – and buying online is a risk. Even if the latest tech allows shoppers to try on a shirt virtually or see how a lamp will look in their living rooms, knowing that a company they trust will deliver their product can make a difference. And it appears this trend is growing: 77% of shoppers say it’s important to know who the delivery provider is.

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Return to sender?

Return logistics plays an essential role in both e-commerce and the circular economy. Learn more and discover how online shops can reduce returns and recover value.

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Faqs about e-commerce conversion

  • Absolutely! Shoppers expect flexibility and convenience when ordering online – plus a broad range of delivery options at checkout. Options like parcel lockers and flexible rescheduling let customers control their delivery experience. Another choice shoppers appreciate is free slower delivery for the cost-conscious, with the option to pay for faster delivery for those in a hurry.

  • Online shoppers say that product availability, quality, online reviews, price, and delivery lead time are important, but an overwhelming 65% care who will show up at their doorstep. Reputation and performance count, so e-commerce merchants need logistics partners who inspire trust.

  • More often than not, it’s because they don’t like the delivery options: too expensive, no free returns, no return options at all – nearly half of all potential sales are lost this way! The E-commerce Trends Report makes it clear that converting today’s browsers into buyers requires a logistics partner who can offer a full range of cost-effective delivery and return options.

ECOMMERCE TRENDS

Learn more about what makes today’s online shoppers click ‘buy now’ in our latest e-commerce trends report.

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Published: July 2024

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