Ecommerce

Delivery
Benchmark
Report 2024
Navigating the complexity
of the modern buyer’s journey
About
AUCTANE
This research was conducted by Auctane, a family of
brands offering shipping and logistics technologies.
Auctane products serve businesses of all sizes all
around the world, from small businesses right through
to enterprise retailers. No matter the size, we help
online sellers around the world with their mailing, ship-
ping and logistics needs. Each year, 3 billion orders are
processed using Auctane products.

Great shipping experiences leave a lasting impact.

Today’s consumers want faster, cheaper, and more
transparent shipping practices, and they favour
businesses that rise to the occasion. We won’t rest
until every company has the tools they need to
delight their customers, whether down the street or
across the globe.

1
Index About Retail
Methodology 03
Economics
Introduction 04
Retail Economics is an independent economics
Key findings 05 research consultancy focused on the consumer
and retail industry. We analyse the complex retail
economic landscape and draw out actionable
Section I insight for our clients. Leveraging our own pro-
Evolution of omnichannel: understanding complex customer journeys 07 prietary retail data and applying rigorous eco-
How is technology driving omnichannel strategy? 08 nomic analysis, we transform information into
points of action.
Section II
Omnichannel customer journeys and delivery trends in 2024 14 Our service provides unbiased research and
analysis on the key economic and social drivers
Pre-purchase: browsing, researching and discovery 15
behind the retail sector, helping to inform criti-
At the checkout: offering choice and the right options 18
cal business decisions and giving you a com-
Last mile: in-flight parcel tracking and visibility 26
petitive edge through deeper insights.
Returns: balancing cost and customer satisfaction 30
Post-purchase and loyalty: addressing delivery pain points in the customer journey 37

Section III
Towards unified customer journeys: success strategies in 2024 42
Unified commerce: the cornerstone of modern ecommerce 43 Report Authors:
Generative AI in 2024: from excitement to deployment 44 Richard Lim, CEO
Optimising delivery and logistics for omnichannel 45 [email protected]
Hybrid retail: ecommerce growing physical footprint 46
Josh Holmes, Sr Consultant
Conclusion 47 [email protected]
Methodology
Consumer and B2B surveys were undertaken
in November 2023 and include answers from
a sample of 8,000 nationally representative
households and 800+ online sellers across the
UK, USA, Canada, Australia, Germany, France,
Italy and Spain.

US UK France Germany

Canada Australia Italy Spain

Participants

total
8,000+
3
Introduction
Entering 2024, the retail sector breathes ferentiation in a hyper-competitive arena. maintaining a multichannel presence; Our Ecommerce Delivery Benchmark
a sigh of cautious optimism after recent Success hinges on mastering an increas- they encapsulate the creation of a Report 2024 explores the intricacies of
years of upheaval. Inflation has retreated, ingly complex customer journey where seamless, integrated shopping experi- these new customer journeys, empha-
marking a reprieve from the acute pres- online and offline intertwine, consumer ence that aligns with the modern con- sising the importance of an omnichan-
sures on household budgets without loyalty is fluid, and expectations around sumer's demand for convenience and nel approach and the critical role of
triggering significant spikes in unem- delivery have reached new heights. personalisation. delivery and logistics. It aims to provide
ployment. Yet, this recovery treads a Today’s consumers demand not only a ecommerce brands with insights and
delicate path: interest rates remain ele- seamless purchasing process but also AI and emerging technologies are key strategies to create outstanding shop-
vated, geopolitical tensions simmer, and swift, reliable delivery services and has- drivers in revolutionising the customer per experiences, highlighting the need
the economic outlook remains fragile. sle-free returns, showing little tolerance journey. From personalised shopping for a frictionless journey that meets the
for delays or complications. recommendations to chatbots that high expectations of today’s consumers.
Against this backdrop, the ecommerce enhance customer service, AI will
sector finds itself at yet another pivotal Central to navigating this landscape is reshape how ecommerce brands inter-
juncture. Now a matured industry, retail the adoption of omnichannel strate- act with their customers, ensuring more
brands face an intensified battle for dif- gies. These strategies extend beyond tailored experiences.

Insights within this report are crucial for retailers and ecommerce brands
to better understand and navigate customer journeys over 2024 and beyond.

The report is divided into three main sections:

1 2 3
Evolution of omnichannel: Customer journeys and Success strategies:
This section provides an delivery trends in 2024: The final section outlines
in-depth analysis of the evolving Delves into the nuances of key strategies that retail brands
customer journey, omnichannel consumer preferences and must consider when adapting
shopper personas and presents behaviours throughout the their models to achieve a unified
an ‘Omnichannel Behaviour entire customer journey. omnichannel approach.
Flow Analysis’.

4
Key findings What’s the difference?
Omnichannel commerce focuses
the customer experience across various,
potentially disconnected channels.

The top trends you won’t Unified commerce integrates all

business operations and channels

want to miss in 2024 onto a single platform.

Where are we heading?

The evolution of retail channels
MULTICHANNEL UNIFIED COMMERCE
1993-2006 2023+

SINGLE CHANNEL OMNICHANNEL

PRE 1992 2007-2022

5
 Where are your customers? How might
The buying path is no longer linear And when they’re forced to decide?
customers
be able to help

75 % 15 %
business?
There’s a silver lining
to red hot returns
of shoppers use of shoppers
digital and physical exclusively browse

47
touchpoints on the and buy online
same customer
journey %
of Gen Z are open
to pay a small fee to
What matters most? 54%
return their online
orders
49%

55
47%
45%
43%

35%

%
of consumers across
all markets expect
delivery to arrive
within just 48 hours
● 2023 ● 2024

A 5% increase The markets showing increased

compared to 2023 demand for speedier delivery

6
SECTION I

Evolution of
omnichannel:
understanding
complex customer
journeys

‘Omnichannel’ has evolved from a buzzword

a decade ago, to the bedrock of modern retailing
in 2024. This section looks at how omnichannel
retail is evolving, the complexity of consumer
behaviour flows within the customer journey,
and the key shopper personas for 2024.
7
How is Fig 1: Evolution of retail over the last 30+ years

technology
driving
SINGLE CHANNEL MULTICHANNEL OMNICHANNEL UNIFIED COMMERCE
PRE 1992 1993-2006 2007-2022 2023+

omnichannel
strategy?

Source: Retail Economics, Auctane

Without doubt, digital transformation has enced the retail value chain. This has Throughout 2024, the continued rise of What is Omnichannel? Omnichannel is
been the critical enabler in facilitating this driven innovation and efficiency in areas Generative AI alongside other emerging defined as the creation of a seamless and
shift toward omnichannel strategies and such as marketing, customer service, technologies, offers even greater oppor- integrated customer experience across
shopping behaviours. From the rise of supply chain optimisation and fulfilment; tunity to enhance customer journeys to multiple channels. It ensures a consistent
ecommerce and pandemic-induced chal- the collective result – supercharged maximise engagement. This includes and cohesive interaction regardless of
lenges, to supply chain issues and more customer expectations. integration of advanced chatbots, voice platform or device, aiming to provide
savvy consumer behaviours, increased commerce, smart self-service kiosks, customers with seamless experiences.
adoption of technology has emerged as a Consumers now expect brands to satisfy augmented (AR) and virtual reality (VR).
key differentiator in supporting the retail their needs regardless of where, when or The goal: a hyper-personalised customer What is Unified Commerce? Unified
sector navigate successive waves of how they shop, and become quickly agi- journey that leverages data science to commerce is the evolution of omnichan-
disruption. tated with poor experiences. Essentially, serve individual customers' interests nel retailing and goes beyond just inte-
they expect seamlessly integrated and preferences to maximise lifetime grating online and offline channels. It is
Strategic investment in digitalising the experiences across multiple touchpoints value. This sets the stage for the industry an integrated approach that provides a
propositions of retailers, logistics com- (online and offline) including web, mobile, to transition towards a truly omnichan- seamless customer experience across all
panies, and technology providers (often social media, in-store, out-of-home deliv- nel model – ‘unified commerce’. channels and touchpoints, ‘unifying’ all
collaboratively) have profoundly influ- ery/pick-up locations, and more. retail processes into a single platform.

8 | Ecommerce Delivery Benchmark Report 2024

Mapping complex journeys: Our research analyses customer journeys Collectively, this results in increasingly In reality, each customer journey is
omnichannel behaviour flows for non-food shopping to ascertain their complex and more dynamic customer unique and can be quite complex in
characteristics. The findings clearly indi- journeys. In order to better understand today’s omnichannel world. Shoppers'
cate an array of complex omnichannel different journeys, our research uses an channel and delivery priorities are
behaviours, often reflecting heightened ‘Omnichannel Behaviour Flow Analysis’, dynamic, influenced by factors like age,
consumer expectations. Here, three in exemplified in Fig 2. affluence, type of product, shopper
every four customer journeys will mission, and more.
involve both digital and physical touch- Importantly, a key takeaway from our
points. Whether this implies discovering omnichannel flow diagram is that just
products online, making purchases 15% of shoppers complete the entire
in-store, or ordering online and opting for customer journey, from pre-purchase
an out-of-home delivery — the fusion of to returns, with no physical touch-
online and offline is evident. points – even if buying online.

9 | Ecommerce Delivery Benchmark Report 2024

 Fig.2 shows the consumer behaviour
Fig 2: Omnichannel behaviour flow across online and in-store channels ‘flows’ at different stages of the customer
journey for a typical non-food purchase,
● Digital based on consumer survey responses.
● Physical For non-food items
30% How to read the diagram:
Courier

31%
Pick Up
30% • Pre-purchase: 62% of shoppers typical-
ly start their customer journey brows-
ing online rather than in-store to dis-
cover and compare products, whereas
38% prefer to browse in-store.
Buy Home 23%

• Purchase: Just under half (47%) of all

Online Delivery
47% 74% In-store
Return
41%
24%
24% shoppers proceed to buy items online
Browse
Online
rather than purchase in-store. 20% of
62% 6% shoppers that browse online, will buy
in-store.

26%
25%
• Delivery: Of these online buyers, the
29%
Drop-off
Point
majority (74%) will generally opt for a
20% 27% home delivery and about a quarter 26%
Browse
Buy will opt for out of home (e.g. collect from
32% In-store
In-store
53% Out of Home store, locker or other location).
38% Delivery
26%
22%
• Returns: When it comes to returns,
Online there is a fairly equal split in preference
16% Postal Return
19% between returning via courier (30%) or
Pre-Purchase Purchase Delivery Returns
post (19%), and returning to store (24%)
or other drop off points (27%).
1 2 3 4

Note: The dotted blue line acknowledges a minority of consumers who buy in-store and opt for home delivery. Our research focus is predominantly on online behaviour.

Source: Retail Economics, Auctane

10 | Ecommerce Delivery Benchmark Report 2024

 Fig 3: Omnichannel behaviour flow for Digital Natives vs Digital Adopters

● Digital
● Physical Digital Natives (Under 45 years old) Digital Adopters (Over 45 years old)
23% Courier
Courier
Pick Up 19% Pick Up
24% 23% 21%
23%

Buy Home
19% In-store
32% Online Delivery
In-store Return
Home Return 40% 86% 29% 24%
Buy Delivery
29% 31% Browse 35%
Online 69% Online

Browse 50%
58% 54% 5%
Online
71% 14%
8%
22%
Drop-off
31% 24% 18% Point
Drop-off
Point Browse Buy Out of Home
28% 25%
Out of
In-store Delivery
21% Buy Home 32% 28% In-store 42%
Browse In-store Delivery 46% 60% 14%
In-store 21% 42% 31%
29%
39%
Online Postal
Return
21% Online Postal 21% 30%
Return
14% 18%
Pre-Purchase Purchase Delivery Returns Pre-Purchase Purchase Delivery Returns

1 2 3 4 1 2 3 4

Source: Retail Economics, Auctane

Digital Natives embody omnichannel agil- In contrast, Digital Adopters (over 45) divide: younger shoppers seamlessly
ity; starting their shopping online, they browse and buy less often online, but navigate between online and offline
frequently transition to physical options tend to remain within the digital sphere experiences, while older consumers are
like out-of-home delivery and in-store once they engage, preferring home deliv- more likely to adhere to a consistent
returns as their journey progresses. ery and online-initiated postal returns. digital-focused path once they have
This highlights a distinct generational made an online purchase.

11 | Ecommerce Delivery Benchmark Report 2024

Omnichannel shopper Fig 4: The omnichannel shoppers to know about in 2024
personas in 2024
Our research reveals five key omnichan- Online-Only Shoppers (16%) - These consumers almost always browse and purchase online,
nel shopper personas based on their choose home delivery wherever possible, and send items back via courier or mail – with little (if
behavioural characteristics (e.g. channel any) engagement with physical touchpoints. They are most likely to be Millennials (30-44) and
preferences, delivery options, behav- Gen X (45-59), live in suburban areas juggling work and family commitments, but with relatively
16% high spending power. Convenience is king for these consumers.
ioural complexity).

Online-First Flexers (33%) - These shoppers lean towards digital channels, browsing and
purchasing more online than in-store. However, when purchasing online, they will frequently
choose out-of-home delivery and returns options (e.g. click-and-collect, lockers). Typically
residing in urban areas, these shoppers value expanded choices and accessibility to a diverse
33% range of retail and delivery options, both online and offline.

Omnichannel Maestros (19%) – Exhibit no clear channel preference in their shopping beha-
viour, confidently switching between online and in-store, as well as home and out-of-home
delivery, based on individual needs or circumstances. They’re typically younger digital nati-
ves with elevated expectations and low tolerance for inconvenience, and epitomise the truly
19%
balanced and fluid omnichannel shopper.

Store-First Flexers (21%) – Typically older and/or on lower incomes, these consumers prefer to
shop in-store, but will often initiate their purchasing journey online - browsing products, com-
paring prices, and checking stock availability. They demonstrate a blend of digital exploration
21% and physical purchasing or fulfilment.

Store Loyalists (11%) - These consumers almost exclusively shop in-store, both when brow-
sing and buying, preferring physical touchpoints across every stage of the customer journey.
Opting for in-store experiences with staff interaction and the ability to ‘try before you buy’
11% (or perhaps lacking digital skills), these consumers are twice as likely to be over 65 years old.

12 | Ecommerce Delivery Benchmark Report 2024

Merchant outlook: In the current trading environment where heightened expectations now is a formi- Industry disruption endured over the past
convenient, frictionless consumer expectations are high and loy- dable task, particularly when the opera- few years has highlighted the importance
alty is fragile, brand success often tional backdrop remains challenging. of investing in omnichannel capabilities
customer experiences
means efficient handling of the many and consistently offering exceptional
key to success in 2024 omnichannel behaviour flows within the The worst of inflation has now passed, value-for-money. This proven strategy is
customer journeys to deliver convenient, but online merchants remain concerned instrumental in overcoming challenges
reliable and seamless experiences. by rising overheads (37%), weak cus- and navigating consumer slowdowns. In
tomer demand (31%) and intense com- the dynamic realm of retail where con-
Any friction encountered along the jour- petition (27%) – identified as the top sumer behaviours and expectations con-
ney risks consumers seeking out compet- three challenges in 2024 (Fig 5). stantly evolve, businesses need to meet
itors or alternative channels that better the challenge of delivering seamless and
cater to their needs. Therefore, the pres- value-driven experiences to secure cus-
sure on businesses to consistently meet tomer lifetime value to ensure success.

Fig 5: Challenges to overcome in 2024

Q: Which of the following do you see as the main challenges to your business performance and growth prospects in 2024?

37%

31%
27%

19%
% of respondents

Flexibility and 12%

adaptability are 11% 10% 9% 8%
fundamental when
meeting consumer Rising Weaker
customer
Competition
in sector
Tax or
regulatory
Supply chain
disruption
Geopolitical
risks
Higher
interest rates
Shortages of
labour and
Currency
volatility/
costs
demands demand burden materials financial market risk

Source: Retail Economics, Auctane

13 | Ecommerce Delivery Benchmark Report 2024

SECTION II

Omnichannel
customer journeys
and delivery trends
in 2024

This section explores five key themes

that will shape the online retail and delivery
sector in 2024 from the pre-purchase
to post-delivery stages.
14
Pre-purchase: Fig 6: Customers’ preferred channels to do product research ● Total
Q: Where do you typically research or find out more about a product? ▲
browsing,
Digital Natives (under 45s)

56%
researching
53%
43% 41%
37%
and discovery
36% 35%

% of respondents
27% 26% 28% 25%
24% 24%
20% 7%
4%
● ▲ ● ▲ ● ▲ ● ▲ ● ▲ ● ▲ ● ▲ ● ▲

Search engine Online Retailer/ Price compari- Word of mouth In-store Social media Chatbots or AI
marketplace brand website son website
Source: Retail Economics, Auctane

Digital acceleration has led to an explo- standing key strategies to cut through uable time when researching and com-
sion of potential touchpoints at the early the ‘digital noise' and engage target paring products, avoiding the need to
stages of the customer journey. This audiences with relevant, personalised visit numerous websites. Retailers can
means more areas and skills for retail content that encourages conversion is therefore benefit from the investment
brands to master in order to engage therefore crucial. and complex infrastructure offered by
and acquire customers. marketplaces to get their products found.
Online marketplaces: key
The rise of mobile device use, social for research and discovery For digital-native Gen Zs and Millennials,
media, and proliferation of ecommerce social media is seen as more important
platforms has created a fiercely com- Most customer journeys start online. Nine than a retailer’s own website for purchase
petitive ‘attention economy’. It has in ten (87%) consumers routinely use inspiration and product discovery. As
driven up marketing costs and presented online platforms for browsing and exposure to digital continues to grow,
new challenges for brands to differenti- researching products, with search today’s consumers are spending more
ate themselves – this will toughen in engines and marketplaces the most pop- and more time browsing and exploring
2024. As such, one in two (48%) online ular ‘go-to’ destinations (Fig 6). Today, retail products. In the UK, the typical
merchants surveyed plan to increase many online marketplaces have become shopper devotes around four hours per
their marketing activity this year, while highly sophisticated in serving shoppers week to researching and discovering
more than a third (38%) intend to launch relevant product recommendations. Such products – an extra 1.5 days per year
new products and services. Under- sophistication often saves customers val- compared to pre-pandemic habits.

15 | Ecommerce Delivery Benchmark Report 2024

Browsing vs buying: channel However, the transition from online Conversely, mature online categories Apparel, toys
preferences by category browsing to actual sales varies across such as apparel, toys and electronics and electronics
categories. The significance of physical are less reliant on stores for sales (Fig 7 are less reliant on
Across all non-food categories, consum- stores becomes more pronounced at blue bars). Here, the customer journey stores for sales
ers browse more online than in-store. This the purchase stage of the customer is more likely to remain online from
preference can be attributed to conveni- journey. For homewares, and health and browsing to buying. This reduced
ence and immediacy afforded by online beauty products, shoppers tend to dependence on brick-and-mortar for
devices, giving shoppers the flexibility to research online, but prefer in-store pur- sales suggests shoppers are more
explore a vast range of products and chases where tactile experiences still comfortable buying lower value or
reviews with near-instant information. play a crucial role. homogenous products online.

Fig 7: Browsing vs buying – customer channel preferences by category ■ Almost entirely online
Q: What proportion of browsing and buying did you do online for each of ■ Mostly online, sometimes in-store
the categories below? ■ Mostly in-store, sometimes online
■ Almost entirely in-store

Browsing Buying

11% 17% 36% 36% Electronics 25% 32% 21% 21%

13% 17% 40% 30% Apparel 17% 37% 27% 19%

Toys, books
16% 21% 35% 29% & games 21% 35% 24% 21%

17% 22% 38% 22% Furniture

& homewares 13% 31% 28% 28%
% of respondents

Health
25% 23% 32% 20% & beauty 11% 30% 27% 33%

DIY
26% 23% 34% 17% & gardening 9% 25% 26% 40%

Source: Retail Economics, Auctane

16 | Ecommerce Delivery Benchmark Report 2024

 The modern buyer’s
Fig 8: Omnichannel behaviours and customer preferences ● Total journey is complex and
Q: Thinking about your typical non-food purchases, which of the following ▲ Omnichannel Maestro* intertwined, with regular
omnichannel offerings makes you more likely to choose to shop with a brand in 2024? switches from online
to offline

77%
74%
69%
66%

55% 55%
48% 50%
% of respondents

● ▲ ● ▲ ● ▲ ● ▲

Browse online, order online Browse in-store, order online Browse in-store, order online for Buy online, return in-store
for out-of-home delivery for home delivery out-of-home delivery or other drop-off location

*See page 12 for definition of profile — Source: Retail Economics, Auctane

Omnichannel behaviour: home delivery and returns (Fig 8). When in-store, before purchasing online for This emphasises the dynamic nature of
the browsing channel switch browsing online, they seek retailers that home delivery. consumer needs and the integration of
give them the flexibility to have purchases digital and physical touchpoints to
In an omnichannel world, the customer delivered securely to a nearby store or a Importantly, the pre-purchase journey accommodate different life situations.
journey is far from linear or a binary choice parcel locker. For ‘Omnichannel Maestros’ here transforms into a search – not just Understanding and accommodating for
between digital and physical channels. (typically time-poor Millennials often away for products, but also for the right fulfil- this complex interplay of omnichannel
from home), this rises to as high as 77%. ment option. Retail Economics research behaviours is critical to convert cus-
For example, 55% of shoppers embrace shows a third of consumers want to know tomers by delivering excellent pre-pur-
the convenience of online shopping, Similarly, many consumers appreciate the the delivery and return options before chase experiences.
yet value retailers who offer out-of- ability to browse and explore products they consider purchasing online.

17 | Ecommerce Delivery Benchmark Report 2024

At the At the checkout stage, online shoppers
have come to expect choice and a range
of delivery options that best suit their
checkout: needs at time of purchase. Retailers
offering multiple options (e.g. same-day

offering or next-day delivery, click-and-collect,

out-of-home pick-up) can empower con-

choice and sumers to shop ‘on their terms’. This sig-

nificantly reduces basket abandonment

the right
and enhances the customer experience
within the omnichannel proposition.

options Importance of alternative

delivery options
Three in four (73%) international shop-
pers state ‘home delivery’ as their pre-
ferred ‘go-to’ option. This partly reflects
How we can help you a legacy of ecommerce in the early
days, where the imperative to grow and
Cater for your customers’ varied attract consumers led to the provision
delivery preferences by pre- of fast, free, and ultra-convenient home
senting them with a wide range delivery— despite incurring substantial
of carrier options at checkout. costs for both retailers and their logis-
Metapack’s Delivery Options tics partners.
allows you to offer multiple ship-
ping choices, from the classic However, Out-Of-Home (OOH) delivery
home delivery to PUDO, locker, options, such as lockers, click-and-col-
pick-up locations and other lect, and other pick-up points, are
alternatives gaining popularity gaining momentum, forming a signifi-
among online shoppers. cant and rising share of consumer deliv-
ery preferences.

18 | Ecommerce Delivery Benchmark Report 2024

 Fig 9: Customers’ delivery preferences by country ● Home ● Delivery Locker ● Pick-up Point
Q: Where do you prefer to have your online non-food orders delivered? ● Workplace ● To Store

7% 4% 7% 6% 7% 8% 13%
3% 7% 6% 14% 27%
3% 4% 7%
3% 4% 6% 6% 3%
6% 5%
4% 5% 9%
4% 6%
83% 82% 77% 76% 75% 6%
69% 68% 56%
6%
8%
6%
3%

HOME DELIVERY OUT OF HOME DELIVERY

Source: Retail Economics, Auctane

Adoption of OOH delivery is particularly Even in the US and UK, where free home French shoppers
pronounced in EU markets, where OOH delivery is commonplace, one in four con- present the most
delivery networks are widely accessible sumers now opt for out-of-home delivery diversified delivery
and well-integrated into courier systems. as their first choice, up from less than a preferences
For instance, 94% of online sellers in Spain fifth in our 2021 benchmark survey.
provide OOH delivery options to custom-
ers – the highest among our eight inter-
national markets.

19 | Ecommerce Delivery Benchmark Report 2024

Shopper location also plays a role in Offering out-of-home delivery not only
delivery preferences. One-third of city provides shoppers with flexibility in pick-
centre residents prefer out-of-home ing up orders as part of their daily routines, Fig 10: Customers’ preferred delivery methods by age and location
locations, compared to less than a fifth but also enables retailers to drive cost
of rural dwellers. Urban shoppers value savings and operational efficiencies ● Home Delivery    ▲ Out-of-Home Delivery
the convenience and accessibility to through consolidated deliveries. As the
nearby stores or collection points, influ- online market matures and ecommerce
enced by busy lifestyles and communal/ shifts from growth-centric to a profitabil- Gen Z

apartment-style living. ity-first phase, increased adoption of out- 60% 40%

of-home options becomes an attractive
solution for both consumers and retailers. Millennials

Urban shoppers 68% 32%

value the convenience
and accessibility Gen X

to nearby stores 77% 23%

or collection points
Boomers

86% 14%

City Centre

67% 33%

Town

71% 29%

Rural

79% 21%
% of respondents

Source: Retail Economics, Auctane

20 | Ecommerce Delivery Benchmark Report 2024

Delivery priorities and
expectations in 2024 Fig 11: Customers’ delivery priorities in 2024 ● Peak 2022
Q: Which of the following features are most important when ordering online? ▲ 2023
Our annual benchmark survey tracks consumers’ delivery ◆ Peak 2023
priorities and expectations over time. This reveals inter- ■ 2024
esting dynamics that capture economic, industry devel-
opment, and seasonality effects (e.g. peak vs non-peak).
35%
Cost: Delivery cost remains the most important con- 32%
version factor for shoppers. Heightened cost of living
pressures last year prompted consumers to place
increased focus on free delivery. Despite the easing of 25%
23% 22% 23% 23%
inflation, value for money remains a non-negotiable 22%
aspect of a retailer's delivery offering in 2024 (Fig 11). 18% 18%
17%
16%

% of respondents
● ▲ ◆ ■ ● ▲ ◆ ■ ● ▲ ◆ ■

How we can help you ↗ Cost of delivery → Speed of delivery → Convenience of delivery

Reduce cart abandonment and se-

cure your conversion rates by of-
fering your clients varied carriers
options and competitive shipping
prices. ShipEngine Carriers Library 16% 15% 15%
allows you to connect your online
% of respondents

10% 13% 13% 6%

shop with over 100 local and global 5%
9% 9% 9%
carriers, through a single integra- 7%
tion, helping reduce shipping costs ● ▲ ◆ ■ ● ▲ ◆ ■ ● ▲ ◆ ■
and ultimately improving customer
satisfaction. ↗ Flexible returns → Delivery visibility & tracking ↘ Green delivery

Source: Retail Economics, Auctane

21 | Ecommerce Delivery Benchmark Report 2024

Speed: Consumers not only seek free A free three-day or four-day shipping
delivery – but swift delivery. ‘Speed of window is the slowest most consum-
delivery’ ranks as a consistent priority ers are willing to tolerate before they
for online shoppers across our annual shop elsewhere. But our research sug-
benchmark survey. Over half (55%) of gests as many as a fifth of online mer-
online shoppers now expect an order chants do not currently provide this as
to arrive within two days as standard, standard (Fig 13).
but only a third of online merchants
currently offer this.

2% 1% 1%

Fig 12: Customers’ delivery expectations

Q: How quickly do you expect a typical online order 4% 4% 6%
21% 20% 18% 23% 23% 25%
to arrive (without paying extra for shipping)?

● Overnight/ Next day

● 2 days
28% 31% 35% 34%
● 3-4 days 27% 26% 37% 34%
● 5-7 days
● 7+ days
1% 2% 2%

5% 5%
20% 12% 20% 11% 21% 13% 24%

38% 31% 29% 32%

37% 35% 33% 30%

Source: Retail Economics, Auctane

22 | Ecommerce Delivery Benchmark Report 2024

The end of free
standard delivery? Fig 13: Merchants delivery time frames (Europe vs North America) ■ Total
Q: What is the standard delivery time frame you offer your customers (without charging additional fees)? ▲ Europe
Industry expectations of offering quick, ● North America
low-cost delivery poses a dilemma for
48%
retail brands. While this benefits custom- 46% 44%
ers, it creates a ‘race to the bottom’ on
pricing that detracts from the customer
experience and puts profitability at risk. 29%
24% 22%
The rising cost of delivery is seen by over

% of respondents
9% 12% 7% 19% 18%
half (55%) of online merchants as the 15% 5%
main threat to business performance in 3%
■ ▲ ● ■ ▲ ● ■ ▲ ● ■ ▲ ●
1% ●
2024, ahead of other cost pressures
Same day/ next day 2 days
such as materials and labour. 3-4 days 5-7 days 7+ days Source: Retail Economics, Auctane

Offering free delivery as standard will

likely become a point of differentiation
for many retailers, but this may become
financially unsustainable. As a result, a
net balance of 34% of businesses are
set to increase their delivery charges in
2024, up from 28% a year ago.

23 | Ecommerce Delivery Benchmark Report 2024

Convenience reigns: empowering consumers
through omnichannel approaches
The retail landscape has undergone a seis- Strategies like Endless Aisle, BOPIS, This evolution involves merging customer Increff's omnichannel solution,
mic shift, with empowered customers BORIS, and BOSS prioritise seamless and data with shopping experiences to deliver Omni, enables a retail revolution
now at its core, compelling retailers to convenient journeys. Central to this personalised services, fortified by robust by integrating Warehousing,
swiftly meet ever-changing demands. transformation is the integration of a security measures. It's not merely com- Order, and Store Systems. Fea-
Currently, 55% of global consumers unified ecosystem, enabling retailers to merce; it's an exploration. Customers are turing complete inventory visi-
expect deliveries within two days, synchronise their channels seamlessly. transitioning from mere buyers to explor- bility, real-time dashboards,
reflecting a strong desire for convenience. This integration provides customers with ers, while retailers act as guides navigating multi-system integrations, end-
This demand has propelled brands towards a cohesive and consistent experience these shifting desires. The symphony of to-end traceability, and rapid
omnichannel strategies, effectively elimi- across all touchpoints. data-driven experiences is reshaping con- implementation, it achieves
nating the online-offline divide. sumer-centric commerce, transforming nearly 100% inventory accuracy
transactions into transformative journeys. and order fulfilment. This results
in lightning-fast experiences,
lowered logistics costs, and a
threefold increase in sales
velocity - setting new standards
for retail efficiency.

24 | Ecommerce Delivery Benchmark Report 2024

Understand where cially reveals a nuanced perspective. This suggests the need for a strategic Digital Natives show
costand speed matters Digital natives (the most frequent online and segmented approach to delivery higher willingness to
shoppers) demonstrate a considerably speed ‘promises’ and offerings. This pay for an upgraded
Offering customers premium delivery higher willingness (77%) to pay for super- could involve targeting premium delivery experience
services for a nominal fee offers retailers fast or chosen-day delivery services. options to specific cohorts and adjust-
an avenue to diversify revenue streams, ing offerings in different locales to bal-
safeguarding margins and mitigating Sub-regional variation adds another layer ance urgency with cost-effectiveness.
potential losses linked to free delivery. of complexity. Shoppers living in major Ultimately, the most successful retailers
cities like London or New York are almost will be those agile enough to optimise
Most consumers are hesitant to pay twice as likely to expect rapid delivery their fulfilment engines to provide var-
£5-£6 for premium services like same or compared to those in rural areas – and are ied delivery services and channels to
next-day delivery, but our research cru- also more likely to pay for the privilege. meet diverse customer expectations.

Fig 14: Customer willingness to pay for premium delivery

Q: Would you be willing to spend £5-£6 extra to have a typical £30-£50 internet order delivered
● Total
by any of the below methods? ▲ Digital Natives (under 45s)

64%

51%
46%
39%
33%
% of respondents

28%
11%
5% 6%
16%
● ▲ ● ▲ ● ▲ ● ▲ ● ▲

Same-day delivery Next day delivery Nominated delivery Two-day delivery No, I would never pay extra
for premium delivery

Source: Retail Economics, Auctane

25 | Ecommerce Delivery Benchmark Report 2024

Last mile:
in-flight parcel
tracking and
visibility

The last mile (distribution centre to deliv- • Route optimisation: Ensuring time- channels, including mobile apps, email
ery destination) has now become a criti- ly and streamlined deliveries aligned or SMS, is also key to ensure overall
How we can help you cal ‘moment’ in the customer journey. It with customer preferences. Over- cohesion of the customer journey.
can significantly impact brand reputation coming challenges in fragmented
ShipStation’s Inventory Mana- and customer satisfaction. Upholding courier networks requires effective • Real-time tracking: This empowers
gement Tool enables you to delivery promises and meeting growing coordination and automation to en- customers to monitor and control
effectively monitor your inven- expectations for convenient, personal- hance resource efficiency—optimis- their delivery ‘mid-flight’ with options
tory levels, offering the sup- ised, and timely deliveries is crucial to ing the use of vehicles, drivers, and to reschedule or amend delivery to
port you need to fulfil delivery maintaining trust going forward. time for greater productivity and suit changing preferences. Real-time
promises and meet the modern cost-effectiveness. tracking also gives businesses visi-
buyer’s growing expectations. Today, getting omnichannel right with bility and insights into last mile per-
Reduce unnecessary errors the ‘last mile’ demands intelligent inte- • Clear communication: Providing reg- formance, enabling them to identify
and increase efficiency with gration of inventory management, order ular updates on estimated (or guaran- potential risks, proactively manage
intelligent features and inven- processing and shipping to craft a uni- teed) delivery times provides trans- exceptions, and ensure on-time deliv-
tory-specific reports. fied and outstanding delivery experience, parency and builds trust. Maintaining ery – all of which contribute to reduc-
this involves: consistent messaging across various ing last mile costs.

26 | Ecommerce Delivery Benchmark Report 2024

Customers seek greater
visibility over parcel Fig 15: Realities on delivery update frequency (customer expectations vs online merchant)
journeys
● Shopper
In today’s data age with instant informa- 42% 42% ▲ Online Merchant
tion and heightened expectations, con- 38%
sumers demand delivery transparency.

Our research shows that a significant 26%

four in five (80%) consumers would like
a minimum of four updates per order 18%

% of respondents
(e.g. shipped, in-transit, out for delivery, 6%
12% 4%
delivered); and as many as a third (38%) 10% 2%
would value daily updates, providing ● ▲ ● ▲ ● ▲ ● ▲ ● ▲
detailed information on their package’s Daily updates Periodic updates Updates only upon shipment Updates only upon delivery Never, do not receive/send
location and progress. status updates

Source: Retail Economics, Auctane

However, many online merchants fail

to meet this desired benchmark, with
two thirds of businesses falling short of
customer expectations by only provi-
ding an update upon dispatch, if at all.

The new ‘gold standard’ in last-mile

delivery now involves cutting-edge
tracking features that go beyond basic
customer updates. It now provides
consumers with precise insights on a
user-friendly interface, indicating esti-
mated time of arrival, the order in the
delivery queue, and live accurate GPS
driver tracking.

27 | Ecommerce Delivery Benchmark Report 2024

Preferred communication
methods Fig 16: Customers preferred method for receiving delivery updates and notifications
Q: When tracking an online delivery package, which method(s) do you prefer for receiving updates and notifications?
Consumers’ preferred method of com-
munication is SMS text (39%), trumping ■ Online (webpage or app)
email notifications (33%) and online por- ▲ Email notifications
tals or apps (28%). ● Real-time text updates

Generational nuances come into play

however, with Boomers leaning towards
email updates, while Gen Zs prefer 32% 30% 27% 27% 31% 22% 32% 41% 16% 32%
27% 26%
immediate mobile updates such as real-
■
time texts or via an app.
■
26% ■
■ ■ ■
Across regions, email notifications reign ■
■ ■ 34% ■ ■
in Germany, Italy, and Canada, while text
32% 40% 29% 36%
updates are most popular in Australia, 31% 35%
32% 28% ■ ▲ 35%
France, the UK, and the US. This highli-
ghts the importance of tailoring commu- 44% 59%
nication channels to local preferences. ▲ ▲
▲ ▲
▲ ▲
▲
▲
45% ▲ 44% ▲
41% 40%
37% 39% 39%
33% 34% 33%

% of respondents
15%
● ● ● ● ● ● ● ● ● ● ● ●

Generation Z Millennials Generation X Baby Australia Canada US UK Germany France Spain Italy
SMS texts still reign Boomers

when it comes to
BY GENERATION BY MARKET
delivery notifications
preferences Source: Retail Economics, Auctane

28 | Ecommerce Delivery Benchmark Report 2024

 How we can help you

Bring your tracking experience

to the next level with Metapack
Delivery Tracking API. This solu-
tion reduces WISMO contact
by up to 35%, to speed up res-
olution time and get enriched
tracking data for an enhanced
post-purchase experience.

If you’re new to the online sell-

ing ecosystem or manage very
low shipping volumes, turn to
Packlink PRO for a better fit in
centralising and tracking all your
operations from one single and
easy-to-use control panel.

Real-time tracking benefits Secondly, tracking serves as a powerful With all this in mind, retailers will be
merchants too tool for disruption mitigation (e.g. well placed to invest in technology and
adverse weather), enabling logistics operational ‘know-how’ to put the final
Real-time tracking is primarily viewed networks to respond swiftly by re-rout- furlong on a par with the pre-purchase
as a customer benefit, but it’s a strate- ing parcels and providing accurate and purchase phases they’ve worked
gic asset for retailers too. Firstly, it delivery predictions. Historical tracking so hard to achieve.
tackles the age-old ‘WISMO’ (where is data can also be used for performance
my order) issue. With tracking and assessment and forecasting, allowing
automation processes, this generally retailers to leverage predictive analytics,
means fewer inquiries, reduced com- especially during peak periods. This
plaints and refund requests – freeing insight aids in pre-empting, mitigating,
up resources for more complex cus- and planning contingencies, ensuring a
tomer service tasks. smooth last-mile experience.

29 | Ecommerce Delivery Benchmark Report 2024

Returns: x
Fig 17: Factors influencing the delivery experience

balancing cost Q: Thinking about the online delivery and returns experience for customers, what do you think is most important?

and customer 45% ● Consumers

▲ Online Merchants

satisfaction 35%

With heightened customer expectations, 27%

the modern shopper seeks the same 23%
level of choice and control over the

% of respondents
return process—deciding when, where, 16%
13% 13%
and how they return items. 11% 5% 2%
2% 9%
● ▲ ● ▲ ● ▲ ● ▲ ● ▲ ● ▲
Yet, inbound logistics doesn’t always Cost of delivery Speed of delivery Convenience of Flexible returns Delivery tracking Carbon footprint of
delivery
receive the same strategic attention as and visibility delivery
Source: Retail Economics, Auctane
the outbound side of operations. Many
online retailers appear to underappreci-
ate the importance of flexible returns
for customers (Fig 17), particularly in
certain categories. Marrying the depth
of seamless convenience with afforda-
bility becomes a critical challenge that
online businesses must strive to over-
come in 2024.

Many online retailers

appear to underappreciate
the importance of flexible
returns for customers

30 | Ecommerce Delivery Benchmark Report 2024

How do consumers seek the courier or postal system. Conversely, Return dynamics
to return? 49% prefer physical returns, opting for
in-store returns or designated drop-off Country: The US and the UK demon-
Understanding how consumers initiate points (Fig 18). strate a net preference for in-store or
returns is critical for delivering the drop-off returns; whereas, German and
desired service. Our research reveals a However, only a fifth (19%) of interna- Italian consumers distinctly favour home
relatively balanced split in preference tional online merchants surveyed cur- collection or postal returns.
across the returns landscape. rently offer an out-of-home returns
option, potentially alienating a signifi- Generational dynamics: Older demo-
A little over half (51%) of consumers cant share of the customer base. graphics find comfort in returning items
prefer the ease of in-home or self-ser- via the postal system; Gen Zs and Mil-
vice returns, entrusting their items to lennials value the flexibility of out-of-
home returns.

Fig 18: Customers return preferences by country

Q: When you returned an item ordered online over the last 12 months, which of the following ● 
In-store returns ■ Courier pickup returns policy

methods did you prefer to use if all the options below were available free of charge? ▲ Drop-off at designated location ◆ Online self-service (return yourself via mail)


25% 15%
26% 42%
21% 15% ◆
23% 24%
19% 20% 14% 21% 24%
20% ◆ 45%
▲ ◆
▲ 21%
◆ ▲ ◆ ▲ ▲ 37%
◆
30% 31% 17% ▲
31% 29%
◆
28% 29% 29
35%% 28%
▲ ◆ 27% ▲
24% 24%
% of respondents

21% 21% 18%

● ■ ● ■ ● ■ ● ■ ● ■ ● ■ ● ■ ● ■
Australia Canada US UK Germany France Spain Italy

Source: Retail Economics, Auctane

31 | Ecommerce Delivery Benchmark Report 2024

Category variations: Apparel stands out
as the only category where in-store Fig 19: Customers return preferences by sector (in-store vs courier pick up) ● Return in-store
returns are first-choice with shoppers. ● Courier pick up
Home courier collection emerges as the
clear winner for bulky or big-ticket items
like furniture and electricals.
RETURN IN-STORE COURIER PICK UP

PREDOMINANTLY APPAREL MULTIPLE CATEGORIES

Source: Retail Economics, Auctane

Retail brands must strive

to offer choice, so that their
customers can purchase
knowing that their preferred
returns method is catered
for, irrespective of age
or location

32 | Ecommerce Delivery Benchmark Report 2024

 Fig 20: Returns rates by category
● Total
Q: Please estimate the proportion of your total purchases, either online or in-store, that you ended up returning over the last 12 months?
▲ Under 45

17%

13%

10%
9% 9%
8% %
12,9 8% 8%
% of respondents

7% 6%
6% 6%

● ▲ ● ▲ ● ▲ ● ▲ ● ▲ ● ▲
Apparel Electronics Furniture & homewares Toys, books & games DIY & gardening Health & beauty

Source: Retail Economics, Auctane

Free online returns dissatisfaction, sizing issues, poor online The escalating tide of returns poses a One in two online merchants surveyed
on the wane product descriptions, and overordering. costly predicament for businesses. acknowledged they are likely to pass on
Consumers often view orders as ‘risk- Retailers spend around (£27)1 per rising costs to customers, with returns
Free online returns, once an industry free discoveries’, making returns a rou- return, accounting for postage fees, the obvious target, given the spiralling
standard, is an increasingly unsustaina- tine part of the online shopping experi- processing, repackaging, item deprecia- costs associated in this area.
ble option for ecommerce, both from a ence, particularly with apparel. tion, labour and missed sales windows.
financial and environmental standpoint.
The apparel sector exhibits the highest This surge in returns has prompted a
Online accounts for less than 20% of return rates of all retail categories (Fig strategic shift among many retailers. The
total non-food retail sales internationally, 20), averaging 13% across both in-store likes of H&M, Zara, Boohoo, Urban Out-
but contributes to over half of all returns. and online transactions, but frequently fitters, and JC Penney have introduced
This is fuelled by factors such as product hovering as high as 30% for online. return fees for online transactions, with
more expected to follow in 2024. 1 National Retail Federation

33 | Ecommerce Delivery Benchmark Report 2024

How willing are consumers
to pay for online returns?
Fig 21: Customer receptiveness to online return fees
While the majority of consumers still Q: Thinking about when you need to return an item, are you willing to pay for returns for products ordered online?
expect free online returns, an increasing
number are open to paying for a seam- ● No - online orders should always be free
less returns experience. In 2024, 28% of
▲ Yes - willing to pay to return product ordered online
shoppers express a willingness to pay for
returns, up from 24% the previous year.

Notably, over half of Gen Zs are willing

to pay for a quick and hassle-free return,
making them three times more likely Willingness to pay by year Willingness to pay by age
than Boomers (aged 65+) to do so.

55-64
76% 19% 45-54
72%
25%

18-24 25-34

53% 41%

28%
24% 65+ 35-44

The willingness to pay for 17% 35%

returns is highly dependent
● ▲ ● ▲
on the context and the
possible related benefit 2023 2024

34 | Ecommerce Delivery Benchmark Report 2024

Although this may be the case when
having to return an item by carrier, inter-
esting insights emerge in a scenario
where shoppers are faced with a brand
introducing a small return fee for online
orders - when it was previously free.
Here, our research shows that the most
likely reaction would be to either return
the item in-store for free (39%), shop
less often with the brand (36%) or join a
loyalty programme to access free
returns (17%). Only 9% of shoppers
would opt to actually pay a return fee in
this situation (Fig. 22).

Fig 22: Reactions to being charged for online returns

Q: Imagine a brand you regularly shop with introduces a small fee to return items ordered online. However, returns remain free if you return to
one of their stores, or if you're a member of their loyalty program which incurs a fee. How are you most likely to react to this policy change?

FREE RETURN SHOP ELSEWHERE/ BECOME LOYALTY PAY RETURN FEE

IN-STORE BUY LESS OFTEN MEMBER TO ACCESS
FREE RETURNS

39% 36% 17% 9%

Source: Retail Economics, Auctane

35 | Ecommerce Delivery Benchmark Report 2024

 Omnichannel-powered return solutions

• Free returns in-store: For retailers with a physical

store presence, instituting a fee for online returns
while maintaining free in-store returns represents a
strategic omnichannel approach. This not only re-
duces costs, but also boosts store footfall. It provides
opportunities to convert a potential loss into revenue
by encouraging secondary purchases, exchanges, or
upselling to customers.

• Loyalty members: The introduction of online return

fees can serve as an incentive for customers to enrol
in membership programs that waive these costs and
reward loyal customers with a seamless and conven-
ient returns experience. By persisting in providing
free returns exclusively for members, retailers not
only attract new sign-ups to loyalty programs, but
also indirectly mitigate the financial impact of re-
turns.

• Technology: Leveraging technology is paramount

in addressing the returns challenge. Beyond provid-
ing accurate sizing information, emerging technolo-
gy like virtual reality and 3D-scanning avatars enable
customers to accurately visualise how a garment will
fit, fostering more confident purchasing decisions.
Zalando, for example, reported a 10% decrease in re-
turns and reduced instances of ordering multiple siz-
es in their jeans category after implementing avatars.

36 | Ecommerce Delivery Benchmark Report 2024

Post-purchase and loyalty:
addressing delivery pain points
in the customer journey
Excelling in the post-purchase experi- 53% express dissatisfaction with poorly such aspects by monitoring and evaluat-
ence enables retailers to help dissatis- packaged or damaged goods. ing customer feedback post-purchase. How we can help you
fied customers and turn satisfied cus-
tomers into brand advocates, fostering The complexity and inconvenience of Retailers can leverage this data to refine ShipEngine Shipping Rates
retention and loyalty. the returns process also emerge as sig- their omnichannel strategies, ensuring tai- API enables you to avoid frus-
nificant pain points, prompting 41% of lored experiences that address specific pain trating your customers with
Customer journey frustrations customers to consider taking their busi- points. Focusing on delivery cost, packaging unaffordable shipping options
ness elsewhere. quality, timely delivery, and convenient at checkout, and rather offer
Shopper dissatisfaction is distinctly pro- returns is essential for fostering engage- them an enhanced buying
nounced in areas of cost and reliability. These pain points considerably reduce the ment, and securing customer loyalty in a experience. Its comparison
A striking 66% of shoppers globally are likelihood of repeat purchases, signalling competitive omnichannel environment. panel allows you to compare
turned off by high shipping costs, while an urgent need for retailers to address carrier rates, build carrier
selection logic, calculate taxes
and duties, and display accu-
rate shipping prices for an
optimal customer journey.

37 | Ecommerce Delivery Benchmark Report 2024

Regional variations Canada stands out with the highest In contrast, France shows a remarka-
percentage of consumers citing incon- bly lower rate of frustration with lost
High shipping costs and poor packaging venient return policies (49%), sugges- packages, possibly indicative of the
are common frustrations across all mar- ting significant opportunity for retai- country's efficient out-of-home deli-
kets, but late delivery is particularly prob- lers to streamline returns processes in very systems that reduce misplace-
lematic in the UK and Spain, with 30% of this market. ment incidences.
consumers experiencing delays, emphasi-
sing the need for more reliable logistics.

Fig 23: The ‘make or break’ of the customer journey

Q: Which of the following would make you less likely to shop with a brand in the future?

10% 10% 11%

● High shipping costs 14%
20%
● The product was poorly packaged or damaged 29% 26% 26%
71% 74% 67% 65%
● Brand or carrier lost package 27% 28% 30%
28%
● Brand has an inconvenient returns policy
36% 41% 36% 36%
● No convenient delivery options
55% 58% 54% 53%
● Package arrived later than communicated
42%
40% 46% 49% 42%
● Brand did not send tracking updates 46% 40% 45%
● Brand did did not offer insurance
11%

12% 17% 15%

17% 13% 16%
65% 64% 20% 62% 63%
20% 24% 24%
29%
29% 30% 31% 36%
51% 50%
54% 47%
43% 31% 38%
42%
32% 44% 43% 41%

38 | Ecommerce Delivery Benchmark Report 2024

 Affluent shoppers
Fig 24: Reasons for affluent shoppers to abandon and switch brands ● High-Income less tolerant
Q: Which of the following would make you less likely to shop with a brand in the future? ▲ Low-Income
High-income consumers are more likely
to switch brands when inconvenienced
(Fig 24). Affluent shoppers demon-
strate significantly higher expectations
71% and have less patience with poor expe-
riences. This can quickly drive them
64% towards competitors.

This disparity in expectations between

income levels suggests that val-
55%
ue-added offerings could be an effec-
50% tive strategy for retaining high-income
49%
47% customers. For instance, where high
shipping costs and inconvenient returns
policies cause pain, implementing
41% 41%
tiered shipping models and premium
return services to meet exacting stand-
ards could help to maintain loyalty.
31% 31%
27% 27%
23% 22%
% of respondents

▲ ● ▲ ● ▲ ● ▲ ● ▲ ● ▲ ● ▲ ●

High shipping costs Product was poorly Brand or carrier lost Brand has an inconvenient No convenient Package arrived later Brand did not send
packaged package returns policy delivery options than communicated tracking updates
or damaged

Source: Retail Economics, Auctane

39 | Ecommerce Delivery Benchmark Report 2024

AI can improve customer role pre-purchase (e.g. chatbots), which in AI services, possibly due to a prefer- Consumers expect AI
journeys and drive loyalty historically has been the focus. ence for traditional interaction or less to be implemented in
exposure to AI-related benefits. the logistics and last-
In 2024, as AI technology is increasingly While AI promises to enhance engage- mile space
adopted by retailers, consumers per- ment, its reception varies widely. Con- This nuanced landscape demands
ceive it having the most impact in the sumers in Spain and Italy display the retailers to adopt a balanced and
logistics and last mile space (e.g. send- greatest enthusiasm here, in contrast informed approach with AI deploy-
ing order and delivery updates, manag- to those in the US and UK, who show ment – one that acknowledges the
ing returns and exchanges). These more caution despite AI's prominence diverse attitudes across different
touchpoints are pivotal for ensuring cus- in these markets. Our research also regions and age groups that values
tomer satisfaction and driving repeat underscores a generational divide: 46% human qualities within customer ser-
purchases, arguably more so than AI's of Boomers (65+) exhibit little interest vice as well as greater efficiency.

Fig 25: The interest and disinterest in AI

Q: Recent advancements in Artificial Intelligence (AI) have expanded retailers’ capabilities as part of the customer experience.
Would you be interested in using AI/chatbots to help with any of the following functions?

31%
28%
26%

21% 21% 20% 19%

17% 16%
% of respondents

Sending order and Managing returns Searching for product Answering general Facilitating secure and Receiving alerts and Receiving customer Assisting with the product Providing personalised
delivery updates and exchanges information before making questions about a retailer convenient payments updates support checkout process product recommendations
a purchase or brand’s offerings
Source: Retail Economics, Auctane

40 | Ecommerce Delivery Benchmark Report 2024

 Nevertheless, retailers must capitalise Personalisation and customisation emerge
on the technology's ability to personal- as potent tools in enhancing the post-pur-
ise the customer journey. Retailers can chase journey. Retailers can tailor delivery
deploy AI-driven personalised com- options to suit individual preferences,
munication strategies to convert one- such as offering delivery times based on
time buyers into repeat customers. historical data or customising thank-you
Post-purchase periods ripe for high-en- notes in packages. CRM systems hold a
gagement communications can be uti- wealth of past purchase behaviour data
lised to upsell products, offer promo- that can inform personalised touches,
tions, and solicit feedback. This not only making customers feel valued and seen.
fortifies brand loyalty but also fosters This tailored approach will be key to driv-
direct customer relationships, encour- ing customer satisfaction and loyalty in an
aging future purchases. increasingly AI-integrated retail future.

Amazon Shipping offers a parcel

delivery solution for orders placed
on your own website, Amazon and
more. Utilise Amazon’s technology-
driven logistics network to access
fast and reliable delivery from your
warehouse to your customers. With
a strong record of innovation and
experience in logistics, Amazon
Shipping is rooted in expertise and
technology to get the job done and
exceed expectations.

41 | Ecommerce Delivery Benchmark Report 2024

SECTION III

Towards unified
customer journeys:
success strategies
in 2024

In 2024, an omnichannel strategy for seamless

and convenient customer experiences is essential
- not optional. This report section delves into key
themes and emerging technologies, providing
strategic insights for retail brands to adapt
and thrive.
42
Unified commerce:  single customer view: the next frontier
A
The crux of unified commerce lies in leveraging data science to work
the cornerstone of towards a single customer view (SCV). Advanced analytics, including
machine learning algorithms and predictive modelling, can be employed
modern ecommerce to dissect vast arrays of customer data, which can then be translated
into a comprehensive customer persona based on unique behaviours,
preferences and purchasing patterns.
Unified commerce currently represents the ultimate goal
in retail strategy. It transcends traditional multichannel
Customer segmentation: beyond demographics
approaches to create a seamless integration across all
Advanced data analytics facilitate a nuanced approach to customer
platforms, ensuring that every customer interaction –
segmentation, moving beyond traditional demographics to encompass
whether online or offline – is curated to individual needs
behavioural and psychographic dimensions. This sophisticated approach
to foster a deep connection and loyalty.
categorises customers not just by who they are, but by how they interact
with brands – their browsing habits, purchase history, and engagement
levels, leading to more effective and personalised marketing strategies.

Channel optimisation: right product, right time, right place

Obtaining a single customer view leads to the strategic optimisation of
channels. This ensures that the right product is presented at the right
time to the right person through the right channel (and even the right
device). Whether it’s the initial product discovery on social media or
final purchase on a mobile app, each channel plays a distinct role gui-
ded by data and insights.

SKU-Level customisation: precision targeting

Having a single customer view enables retailers to anticipate and
influence purchasing decisions at a granular SKU-product level. This
precision targeting enables the recommendation of the most relevant
products at opportune moments, enhancing the customer experience
and increasing conversion rates.

43 | Ecommerce Delivery Benchmark Report 2024

Generative AI in 2024:
 I-Driven marketing
A
Generative AI will evolve the pre-purchase shopping experience via targeted
marketing content. Dynamic recommendation engines will allow retailers to

from excitement to better understand customer behaviour, then provide them with highly tailo-
red product suggestions to drive conversions. This approach allows for more

deployment effective communication of product offerings that align with customer inte-
rests and behaviours to greatly refine marketing strategies.

Conversational commerce
Generative AI differentiates itself from other emerging
AI-powered conversational commerce will become much more prevalent in
technologies (e.g. blockchain or the metaverse) by its
customer journeys. Its sophisticated language models enable AI shopping
direct applicability to the customer journey. Its ability
assistants to engage in natural, interactive dialogues with shoppers. This advan-
to personalise, predict, and enhance each stage makes
cement offers a departure from traditional chatbots and static online interac-
it a vital tool for ecommerce businesses in 2024, pro- tions, facilitating a more engaging and responsive shopping experience. The
mising significant enhancements in customer expe- capability to provide tailored product recommendations and advice in real-time
rience and operational efficiency. transforms how consumers interact with brands online.

Optimising delivery
AI will play an increasingly important role in optimising delivery logistics. Advan-
ced algorithms can facilitate more efficient route planning and provide real-time
tracking updates. This enhancement not only streamlines the delivery process
for retailers, but also improves customer satisfaction through timely and accu-
rate delivery updates.

Customer service
AI-driven systems are revolutionising customer service by efficient handling of
fairly complex queries now. This shift not only improves response accuracy, but
also enhances overall efficiency of customer support. The result is a smoother,
more satisfactory interaction for customers seeking help and information.

Post-purchase engagement
By analysing customer feedback and purchase history, AI can generate perso-
nalised offers and content. This strategy not only enhances the customer expe-
rience, but opens up avenues for repeated engagement which strengthens the
relationship between customer and brand.
44 | Ecommerce Delivery Benchmark Report 2024
Optimising Enhanced customer options at checkout
Offering diverse checkout options such as nominated or weekend delivery, store
pick-up, locker collection, and local drop-off returns, caters to the diverse range
delivery and logistics of consumer preferences and schedules. This flexibility not only enhances the
customer experience, but also encourages repeat purchases by accommoda-

for omnichannel ting different lifestyles. Our research shows out-of-home delivery and return
options (including lockers and local collection points) are much valued by
consumers. The environmental and logistical efficiency of these consolidated
delivery points can also contribute to a more sustainable model.
In 2024, the focus in omnichannel retail logistics is
on integrating flexibility, efficiency, and technological
Going global
advancement. These elements work in harmony to ele-
Cross-border shipping should also be considered as part of an omnichannel stra-
vate the customer journey, making it more seamless
tegy, enabling retailers to tap into global markets to serve customers wherever
and aligned with evolving consumer expectations.
they are. The challenge lies in seamlessly integrating international shipping into
the customer journey. This integration requires addressing complex logistics, var-
ying customs regulations, and currency differences while maintaining a consistent
brand experience. Retailers must adapt to diverse market expectations, offering
localised content and payment options to appeal to international customers.
We have solutions for every delivery format:

The premier online shipping solution The power of partnerships

for smaller sellers in Europe Omnichannel retail logistics rely on partnerships with carriers, third-party logis-
tics (3PLs) and fulfilment providers to ensure faster and more reliable delivery
services. These collaborations enable retailers to diversify their delivery offerings,
The leading web-based order including same-day and international delivery options, without incurring additio-
management and shipping software nal operational complexity. By partnering with courier aggregators, retailers gain
access to a wider range of delivery solutions at competitive prices, simplifying
Best-in-class provider of ecommerce their carrier management processes.
delivery technology to enterprise
businesses Digital technologies for improved performance
Digital technologies like real-time tracking systems, route optimisation software,
and automated warehousing are critical for improving delivery performance.
The API shipping software of choice
These technologies not only streamline operations, but also provide transpa-
for marketplaces, 3PLs and ecommerce
rency and control for both retailers and consumers. This leads to a more syn-
merchants
chronised omnichannel experience by streamlining operations and providing
valuable insights into customer behaviour to further drive improvements.

45 | Ecommerce Delivery Benchmark Report 2024

Hybrid retail: Physical stores as customer acquisition tools
The cost of online customer acquisition has skyrocketed, prompting

ecommerce growing brands to leverage physical stores as effective marketing and customer
engagement tools. Real estate market adjustments mean securing prime
locations has become more feasible, offering brands an opportunity to
physical footprint increase visibility and engage with new customers. Physical stores are
evolving beyond mere sales points, they are becoming dynamic spaces for
brand storytelling, customer interaction, and elevating brand awareness.
A growing number of Direct-to-Consumer (DTC) and
ecommerce brands are venturing into bricks-and-mortar Halo effect
retail – a trend likely to gain momentum in 2024. In the Integrating physical stores within an ecommerce brand can create a 'halo
US, AllBirds and Warby Parker continue to grow their store effect' where the presence of physical stores significantly boosts online
count after starting online, while Gymshark's flagship sales in the surrounding area. Warby Parker reports a tripling of online sales
store opening on London’s Regent Street, and Asos and in areas where they open physical stores.
Depop's pop-up initiatives signify a similar shift in Europe.
As online businesses respond to evolving market dynamics,
these cases exemplify how physical stores are becoming Fulfilment hubs
a crucial component of a successful omnichannel strategy. Physical stores can also serve as vital nodes in the supply chain, facilitating
out-of-home delivery and returns. They act as fulfilment hubs to support
inventory management, provide ship-from-store capabilities, and can help
with in-bound logistics. The concept of 'dark stores (retail outlets functio-
ning solely as local distribution centres) is also gaining traction. This shift
not only offers convenience to customers but also streamlines logistics
and inventory management for retailers.

In-store tech
Ecommerce brands hold a unique advantage in expanding their omnichan-
nel experiences into physical retail. Leveraging data-driven insights and
technological expertise, these brands are innovating the in-store expe-
rience. Features like interactive digital tables, in-store lockers, smart mirrors,
touch displays, digital signage and self-checkouts are being used to create
more engaging shopping experiences. This tech-minded approach allows
digital native brands to offer a level of personalisation and engagement
that aligns with their online presence for a competitive advantage.

46 | Ecommerce Delivery Benchmark Report 2024

Conclusion
In 2024 and the years to come, the The urgency for retail brands to embrace
ecommerce landscape will be shaped customer data, AI, and cutting-edge
by ever-evolving omnichannel expecta- technologies cannot be overstated. These
tions and increasingly complex customer tools are vital for a flexible, omnichannel
journeys. This report underscores the strategy, which is critical as the industry
critical need for retail brands to adapt to evolves towards achieving a 'single cus-
a new paradigm of non-linear shopping tomer view' and a genuinely unified com-
experiences, where digital and physical merce experience. Implementing a more
realms are seamlessly integrated, and integrated approach is essential for keep-
personalisation is key at every touch- ing pace with these advancements.
point. The absence of a frictionless jour-
ney can swiftly lead to abandoned carts, With the sophisticated capabilities tech-
lost sales, and customer dissatisfaction. nology now offers, shoppers are coming
to expect friction-free customer jour-
Our findings emphasize the importance neys at each and every step. Outper-
of adopting a flexible, customer-centric formers have set high expectations here.
approach, particularly in the realms of Looking ahead, the capacity to adapt
delivery and returns. It's imperative to and innovate in this dynamic landscape
strike a balance between operational will remain a critical factor that sepa-
efficiency and providing the choice and rates the market leaders from the rest.
convenience that today's discerning As we navigate the future, this adapt-
shoppers demand. The growing prefer- ability and forward-thinking will be the
ence for out-of-home delivery options hallmark of success in the ever-evolving
and the strategic necessity of cost-ef- world of retail.
fective returns management are crucial
in meeting these evolving needs.

93 | Ecommerce Delivery Benchmark Report 2024

47
Are you ready to boost online
growth, increase revenue and
expand your business worldwide?

If so, we have a solution for you, no matter your size or ambition:

The premier online shipping The leading web-based Best-in-class provider The API shipping software
solution for smaller sellers order management and of ecommerce delivery of choice for marketplaces,
in Europe shipping software technology to enterprise 3PLs and ecommerce
businesses merchants

Having read this report, you are now equipped with data-backed insights into the upcoming year, across several major
countries – ready to fine-tune your strategy and ensure growth and success. Add our solutions to your business and you’ll
unlock a whole other level to what’s possible.

48 | Ecommerce Delivery Benchmark Report 2024

Say goodbye to manual
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