As consumer purchase patterns continue to shift to online and big players set up ‘shop’ in Australia, local retailers need to adapt their business models to keep up with the changing industry.
While price-point used to be the sole consideration for purchase decisions, shoppers are increasingly opting for products based on delivery speed and cost, with a recent study revealing 57 per cent of Australians discard their shopping carts as a result of long delivery times and high shipping costs.
To compete in this near-instant, convenience led market, businesses need to ensure they have basic services available and can take it to the next level by implementing express last mile delivery logistics.
Set up for success
As shopping experiences shift away from the traditional bricks and mortar offering, businesses need to offer convenience services, like delivery and Click & Collect, or run the risk of losing customers to online retailers.
In the on-demand delivery era, three to six business days is no longer a viable delivery option and shoppers are increasingly opting for businesses that can better meet their need for speed, often forgoing physical stores and depending on door-to-door delivery instead.
According to The Retail Property Market, a report by BIS Oxford Economics, online shopping currently holds eight per cent of the Australian market, at a growth rate of 15 per cent per year.
With the majority of businesses (online and physical) only offering next day delivery, retailers can step ahead of the pack and download the capabilities to deliver within a one to three-hour window – giving customers a reason to use them over a competitor.
With this in mind, bricks and mortar retailers can use their physical stores to their advantage by engaging them as mini distribution centres – not just ‘walk in’ stores. With readily available products, retailers are better equipped to manage last mile delivery than their larger online counterparts with warehouses and complex packing processes.
Tips and tricks for setting up last mile delivery
As stores look to compete with the increasing e-commerce space, they need to look at including last mile delivery logistics within their business model. As part of this, businesses need to take the following considerations into account:
- Make it easy for your customers to shop your stuff
o Have a strong online presence
o Ensure you have an easy to navigate ecommerce site
o Consider an over the phone ordering system
o Establish a return service – if you don’t already have one
- Get your picking and packing down pat – implement an in-store procedure to manage products for delivery orders versus in-store orders
- Ensure delivery and inventory management is integrated into the online shopping experience – so product availability and delivery options change based on availability
The Drive Yello delivery platform ‘Yello’ allows retailers to handle deliveries themselves – maintaining customer contact and the ability to offer a personal service while compete in the online space. If you’re a business looking to up the ante, sign up to the new Yello Delivery App and start delivering today!