July 07, 2016

Shipping Options and Delivery Partners Essential to Winning the eCommerce Battle, Accenture Study Shows

ARLINGTON, Va.; July 7, 2016 – The right delivery partners and easy website navigation with multiple shipping options are critical success factors for eTailers as nearly two-thirds of digitally savvy consumers report basing a purchase decision on delivery options – often abandoning shopping carts before orders are submitted if the process is cumbersome, research from Accenture shows.

The study, Differentiating Delivery: How to Win the eCommerce Battle, examines an increasingly competitive delivery market that has emerged from continuing growth in online shopping and identifies strategies to help postal organizations and shipping companies retain and gain market share. Among the key findings identified by the study is that organizations need to make effective, dependable delivery options a priority in order to remain competitive. The results are based on a survey of more than 1,100 small- and medium-sized businesses across 10 countries and five continents.

Continued projected growth of the eCommerce market underscores the importance of the research which shows that eTailers, or online retailers, were nearly unanimous in seeing online sales growth of at least 2 percent, with nearly half (46 percent) of respondents projecting double digit annual online sales growth. Additionally, the study found that a majority (86 percent) of eTailers are planning investments to expand eCommerce activities over the next 12 months. According to the 2015 Worldwide Retail Ecommerce Report from eMarketer, retail eCommerce is projected to account for 7.3 percent of the total 2016 retail market worldwide – a 25 percent increase from 2014 – increasing significantly to 12.4 percent by 2019.

“eTailers are chasing a rapidly expanding market, in which delivery is becoming a critical differentiator and a strategic priority,” said Brody Buhler, who leads Accenture’s global post and parcel business. “There is no doubt that eTailers are getting strategic about delivery and so should parcel delivery organizations.”

Delivery impacts all stages of a consumer’s buying process, increasing the pressure on retailers to provide a seamless online process to purchase and return products. The study showed that two-thirds (66 percent) of consumers have chosen a retailer based on the number of delivery options and three-quarters (76 percent) look at a retailer’s return policy before completing an order.

More than one-quarter of respondents (26 percent) said they use at least three parcel providers to ensure the best price and to mitigate the risk of lost packages or delayed delivery that might result from relying on a single provider. Despite the possibility of one individual shipper providing all required services, a majority of eTailers (79 percent) still would prefer working with multiple providers.

While an overwhelming majority (83 percent) of businesses survey reported being satisfied with their current primary delivery provider – most likely to be USPS, DHL, UPS and FedEx – the study found that many eTailers are turning to marketplaces like Amazon and eBay to reach more consumers and increase revenue, increasing competition in an already crowded marketplace. In fact, the research found that 69 percent of eTailers reported earning 41 percent of eCommerce revenue through an online marketplace.

“Not only are marketplaces moving into the delivery space, but major retailers are now sidestepping delivery providers in favor of their own services,” Buhler said. “Digital is dramatically blurring the boundaries between eTailers, marketplaces and delivery providers. Adapting to these new threats as well as new opportunities is not only urgent but critical to future growth of parcel organizations,” Buhler said.

The study indicates that to remain competitive within a rapidly changing global eCommerce market, delivery companies and postal organizations should focus on five areas:

The Differentiating Delivery study is based on a survey of 1,124 businesses with one to 500 employees and global revenue from online sales of less than $500 million or greater than 20 percent of their total revenue. All businesses surveyed sold goods that required physical delivery to customers. The online survey was completed for Accenture by McGuire Research in 10 countries: Australia, Brazil, Canada, China, France, Germany, Italy, Japan, the United Kingdom and the United States.

Learn more about Accenture’s work with postal organizations.

About Accenture
Accenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions – underpinned by the world’s largest delivery network – Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With more than 375,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.

# # #


Joanne Veto
+ 1 703 963 4212