In the cutthroat world of e-commerce, Small and Medium-sized Enterprises (SMEs) face a constant battle for survival. While price often takes center stage, there’s a silent killer lurking in the shadows, slowly chipping away at your profits: poor delivery.
The Shippit report and other industry data reveal that delivery isn’t just a logistical necessity; it’s a crucial component of the customer experience, and mistakes in this area can have devastating consequences for your bottom line. Are you unknowingly making these critical delivery errors? Let’s uncover the culprits and explore how to fix them.
Mistake #1: Treating Delivery as an Afterthought
Many SMEs focus heavily on marketing and product development, often neglecting the crucial post-purchase phase. Delivery is often treated as a simple transaction, rather than a vital opportunity to build customer loyalty. This is a huge mistake. Customers remember a poor delivery experience far longer than they remember a clever ad.
- The Fix: Integrate delivery into your overall business strategy. Think of it as an extension of your brand. Map out the entire customer journey, from purchase to delivery, and identify areas for improvement. Make delivery a key performance indicator (KPI) and track your progress.
Mistake #2: Offering limited or inflexible delivery options
In today’s fast-paced world, customers expect choice. Offering only one or two delivery options can alienate a significant portion of your target market. Some customers need express delivery, others prefer click-and-collect, and still others prioritize sustainable shipping.
- The Fix: Diversify your delivery offerings. Explore partnerships with multiple carriers to provide a range of options, including express, standard, click-and-collect, and even same-day delivery if feasible. Consider offering eco-friendly shipping options to cater to environmentally conscious customers.
Mistake #3: Inaccurate delivery estimates and poor communication
Nothing frustrates a customer more than receiving inaccurate delivery estimates or being left in the dark about their order status. Vague delivery windows and a lack of communication can lead to anxiety, frustration, and ultimately, lost sales.
- The Fix: Be transparent and proactive. Provide accurate delivery estimates at checkout and keep customers updated on their order status every step of the way. Use real-time tracking, automated email notifications, and even SMS updates to keep customers informed. Proactive communication builds trust and reduces customer service inquiries.
Mistake #4: Neglecting local fulfillment opportunities
The Shippit report highlights the growing importance of local fulfillment. Customers are increasingly drawn to businesses that offer faster delivery and support their local communities. Neglecting this trend can put your SME at a significant disadvantage.
- The Fix: Explore local fulfillment options. Consider partnering with local couriers, leveraging your store locations for click-and-collect or ship-from-store, or even setting up micro-fulfillment centers in strategic locations. Local fulfillment not only speeds up delivery but also strengthens your connection with the community.
Mistake #5: Underestimating the power of post-purchase personalisation
The delivery experience doesn’t end when the package arrives. The post-purchase phase is a crucial opportunity to build customer loyalty and encourage repeat business. Ignoring this can be a costly mistake.
- The Fix: Personalize the post-purchase experience. Send personalized thank-you emails, offer exclusive discounts to returning customers, or even include a small, unexpected gift in the package. These small gestures can make a big difference in building customer relationships and driving repeat sales.
“Retailers today are contending with a perfect storm of shifting consumer expectations, economic pressures, and intensified competition from global players. Australian Bureau of Statistics data shows that business insolvencies surged by 50% this financial year, with retail trade failures rising 14.2%, amid growing cost pressures and cautious consumer spending.
Many in the industry are facing a genuine battle for survival in 2025,” said Rob Hango-Zada, Co-Founder and Joint CEO of Shippit. “As consumers become more selective with their spending and demanding in their expectations, retailers must work harder to capture every sale, whether through seamless delivery, personalised experiences, or competitive pricing. Those who fail to adapt risk losing market share to agile competitors who can meet these evolving demands.”
“More than ever, success in eCommerce depends on balancing profitability with exceptional customer experience. As businesses shift toward more margin-conscious peak sales strategies, optimising shipping costs, leveraging multiple carriers, and investing in automation have become essential” said Johannes Panzer, Head of Industry Solutions, eCommerce, Descartes Peoplevox. “But delivery isn’t just about the last mile, fulfilment plays a critical role. The better retailers understand, organise, and optimise their warehouses, distribution centres, and networks, the easier it is to balance cost efficiency with customer experience and meet delivery promises”.
“From a delivery perspective, there’s a lot of focus on optimisation. If we get it right, we’ll get better cost efficiencies and better customer service at the same time. We also want to ensure we understand where our customers are coming from, where the demand is, and make sure our stock is available” said Carina Micheal, Group Head of Technology & Digital APG & Co.
The full report is available for download [HERE]
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Poor delivery choices could be silently draining your profits. Are you unknowingly making these 5 costly mistakes? News, Delivery Dynamic Business
