Fight in global B2C e-commerce delivery gets tougher
The global growth of B2C E-Commerce creates both challenges and opportunities for the delivery sector. According to the findings of secondary market research specialist yStats.com of Germany, free shipping still remains the number one priority for almost two thirds of online shoppers worldwide. In Asia, around half of digital buyers would add items to a cart in order to qualify for the free shipping service and in North America more than half of all online shoppers would choose longer delivery times, as of early 2015.
On the other hand, delivery speed is also a major concern of global online shoppers. Especially in the emerging markets, online consumers have to cope with long delivery times, as online retailers struggle with underdeveloped logistics. Approximately two thirds of online shoppers worldwide found delivery speed to be important last year. The BRIC countries rank the highest in share of online shoppers who would pay more for faster delivery. In response to this demand, online retailers attempt to offer express delivery options, such as same day and next day delivery. This leads to increased investment and intensified competition among the merchants and logistics providers, as yStats.com’s report shows.
In China, the two largest e-commerce companies, Alibaba and JD.com compete in covering the largest number of cities with same day delivery. Meanwhile, US-based Amazon.com expanded its one-hour delivery service to London this summer, with further cities in the UK and perhaps in Europe to be covered later this year.
Another interesting finding of yStats.com’s report is that while home delivery is still the leading B2C E-Commerce delivery option in many countries, the popularity of alternative delivery methods, such as “click and collect”, is growing. In Sweden, close to half of online shoppers preferred to pick up their online orders from the post office or another location, rather than have these orders delivered to their home, as of early 2015. Another example is Argentina, where “pick up at the point of sale” was the second leading delivery method used by online shoppers last year.