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Claude Rombaux
GLS Belgium

Published in: Marketing
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  1. 1. Deliver it the right way or forget your success right away Claude Rombaux Sales & Marketing Director Belgium & Luxemburg
  2. 2. The delivery, an important link in your chain You want to start a webshop? You already have your concept, your brand, your staff? But did you integrate the delivery in your business plan? Manufacturer Payments online Storage … But what about packaging, delivery, return process, … 2 e-Commerce Summit | 26 February 2014
  3. 3. The delivery, an important link in your chain The logistics aspects are much more than just « a » delivery and must integrate: • Packaging and security issues • Labeling • Insurance • Delivery method(s) • International shipping • Track & trace • Return process 3 e-Commerce Summit | 26 February 2014
  4. 4. What customers want… 4 e-Commerce Summit | 26 February 2014
  5. 5. Market analysis of COMEOS For the third time in a row, Comeos published their annual report on Belgian e-commerce, focusing on the main trends and future developments, among 1.062 Belgians (representative on region, gender and age). Comeos – created in 1978, and formerly known as FEDIS - represents the Belgian Trade and services Sectors. The members are active in 18 sectors, represent 11,2 of the GNP of Belgium and employ 400.000 people. 5 e-Commerce Summit | 26 February 2014
  6. 6. e-Shopper‘s Delivery Preference Up to 74% for a door to door delivery 6 e-Commerce Summit | 26 February 2014
  7. 7. When should it be possible to have product delivered? 7 Meeting | Datum
  8. 8. How much are you willing to pay for the delivery? 8 Meeting | Datum
  9. 9. e-Shopper‘s Delivery Preference 1 What do customers expect? • Home delivery • • Fast delivery • • They want to have full control of the delivery options (location, date, type, …) Trackable delivery • 9 Unexpected costs (such as delivery costs) represent the main reason (56%) for abandoned shopping carts Flexible delivery • • Except for action sales where they have to wait for closing of the sales on e-shop Cheap delivery • • Even if ShopDelivery has become a more mature solution Parcel movements must be transparant through reliable and detailled track & trace e-Commerce Summit | 26 February 2014
  10. 10. The Flexible Delivery 1 What are the different possibilities? • • • • • 11 Standard home delivery Alternative address Alternative date for delivery Delivery in a ParcelShop or pick-up point Deposit service (delivery without signature) e-Commerce Summit | 26 February 2014
  11. 11. The Flexible Delivery Why are « multiple choices » at order not always enough? • Because all orders are not always ready to be shipped the same day for next day delivery • • Because buyers also have a lot of (sometimes unplanned) activities Buyers also sometimes forget delivery agreements Therefore e-shoppers want to manage the delivery themselves in real time By having the choice of the original delivery option By having the possibility to change the delivery even after the order By having the same possibility even later in the process … all this without losing 24 hours in delivery! 12 e-Commerce Summit | 26 February 2014
  12. 12. Tips & Tricks 13 e-Commerce Summit | 26 February 2014
  13. 13. The right price Did you calculate the « all-in price »? • • • • • Is the pick-up included? Is the proof of delivery (signature) included? Is the insurance included? (*) Is the track & Trace included? Is there any surcharge (Cash On Delivery, Oversized, non conveyable, outside area or island, …) Make sure you have a clear and complete view and knowledge of your supplier’s tariff Integrate those parameters in your online price calculator Don’t forget to add VAT… 14 e-Commerce Summit | 26 February 2014
  14. 14. The right coverage What happens if your parcel gets lost or damaged? • Most carriers responsibilities are limited to CMR conditions for road transport • • CMR limits liability to approx 10€/kg Some carriers offer a free insurance up to 750€ per parcel • But check conditions and eventual deductible Make sure you have the goods covered either by the (free or additionnal) insurance of the carrier, or by your own insurance company Define clear rules for your transfer of liability with the carrier Inform your customers (consignees) about their liability when signing for receipt because this may affect admissibility of your claim 15 e-Commerce Summit | 26 February 2014
  15. 15. The right service(s) Do you offer the right delivery options to your customers? • Even if customers prefer home delivery, you need to offer also alternative solutions such as delivery into a ParcelShop for example • You can choose for one single carrier offering all the alternative solutions or consider working with different carriers Make sure you have a complete and flexible offer towards your potential customers but keep it user friendly (= simple and clear) for your e-shoppers don’t forget to consider the IT-integration costs if you choose to work with different carriers (preparation & labeling, track & trace, return processes, …) give your customer the choice to modify their shipping instructions/method even after the order 16 e-Commerce Summit | 26 February 2014
  16. 16. The right content Are you sure the goods you want to ship are not prohibited for road or air transportation? • • Restrictions and regulations may be different from road to air transport They may also vary from one carrier to the other one Make sure your goods comply to the different rules Dimensions: parcel distribution often applies maximum weight and maximum dimensions, maximum girth, maximum length, maximum volume, … Dangerous goods: some items are considered as dangerous goods and depending of road or air transport these rules may be different Ex. refill for lighters, paint sprays, lithium batteries, … Some items may be prohibitted by the carrier such as juwelery or glass for example (bottles!) Consider always legal and sanitary restrictions and regulations (cigarets, alcohol, perishables, …) 17 e-Commerce Summit | 26 February 2014
  17. 17. The right destination(s) Internet offers an international potential. Are you prepared? • • Is your website ready for international payments, shipping, languages, …? Do you know how to ship to other destinations within Europe or abroad? Make sure you know how, where and what to ship Have the right paperwork for non EU destinations Agree about formalities with carrier (do you need export documents for your accounting?) Define the right Incoterm (who pays what) for each parcel/order Explain clearly on your website what your customer will have to pay for shipping, but also for clearance at destination Make sure your carrier has the customs license 18 e-Commerce Summit | 26 February 2014
  18. 18. The right packaging Too often shippers try to save money on packaging • The shape of your parcel is the image of you shop towards your customers • Beside the shape and image, damaged goods only result in customer frustrations, extra administrative and operational workload, and extra costs Make sure you prepare your goods for the complete shipping process Choose the right carton box, not only the size, but also strong and multiple layers Make sure the item is not just loose inside the box but fixed and protected Don’t forget the box might be used for eventual return process a second time, so it must be strong enough! 19 e-Commerce Summit | 26 February 2014
  19. 19. The right software and labels Everything starts with the order • • When confirming the order, the customer defines the shipping solution You need all detailed info to prepare the right label Make sure you provide the final routing label and full data When goods must be re-labeled, quality will suffer data transfer with carrier will allow full track & trace, but also communication with YOUR customer for smooth delivery, Make the T&T visible on your website Provide correct email address of consignee to your carrier Align the email notifications between your system and the one of your carrier to avoid overloading your customer with emails Make sure your carrier does not use or sell these email addresses for adverstising 20 e-Commerce Summit | 26 February 2014
  20. 20. The right process Shipping is one thing, returning another! • • E-commerce generates much higher return ratio Return process must be easy, reliable and usually free of cost for the customer Make sure you integrate the return process even before shipping Return process must be explained on website Foresee a return label with the original packaging to avoid wild returns Offer the possibility to your customers to ship it back via a ParcelShop close to his work- or home address Make sure YOU and YOUR CUSTOMER can manage and follow-up the returned item via full and reliable track & trace system in real time 21 e-Commerce Summit | 26 February 2014
  21. 21. Conclusions The right product on the right website at the right price with the right payment method go the wrong direction if you do not have the right delivery solution(s) 22 e-Commerce Summit | 26 February 2014