Customers in the driving seat for e-commerce - EPPS 2015
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Matthew Robertson, CCO NetDespatch and Nigel Doust, CEO Blackbay gave a presentation at the European Post & Parcel Services Conference in Vienna in March 2015 on the lifecycle of a parcel and the increasing adoption of Click & Collect. In particular they focused on how carriers can provide an effective Click & Collect offering and how delivery options might expand in the future. Their presentation also focused on the values and benefits to the consumer, merchant and carrier of this service.
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Customers in the driving seat for e-commerce - EPPS 2015
- 1. Customers in the driving seat for e-commerce
- 2. Combined over 15 million shipments are created, tracked and managed daily connecting the shipper, carrier and crucially the consumer with real time knowledge creating a smarter delivery experience
- 3. 87.1 % FIRST TIME DELIVERY RATE 17%OF PURCHASES ARE NOW CLICK & COLLECT 55%HOMES ARE UNATTENDED DURING DAY 73 % WANT TIMED DELIVERY SLOT OPTIONS 91%Prefer delivery to home The divided market
- 4. Click & Collect on the rise 63% of online shoppers in the UK used click & collect in last 12 months, 43% in France, 26% in Germany. Deloitte predicts that the number of click and collect locations in Europe will reach half a million in 2015, a 20% increase on the previous year. 31 % of customers in the UK were disappointed with the Click & Collect experience this Christmas
- 5. Click & Collect Journey
- 6. PASS MY PARCEL –
- 8. Update retailer Update netdespatch Thank you email/sms Enter pick up code Email/sms to customer Generate pick up code How it works in detail Scan to van Collection created Pre-adviceLabel Produced Signature date/time Signature date/time Scan event date/time netdespatchblackbay
- 9. A look to the future
- 12. Drive thru - valet
- 13. Drive thru - mainstream
- 14. Virtual queues
- 15. Meet & Greet Kiosk
- 16. Utilise existing infrastructure to offer same day delivery Provide upsell potential for retailers Complete visibility & Transparency of returns Consolidated delivery offering Deliver Personalised branding & communications for retailer Connecting customer experience across channels Same Day Click & Collect Offering Convenient and transparent returns management Increased Revenues & Brand Loyalty Control Over In-store Staff Through Worksmart WHAT DOES IT MEAN FOR THE INDUSTRY?
- 17. +SCROLL top-shelf custom CARRIERS Click& Collect Retailers & advisors
- 18. Nigel doust ceo +44 7899 064 699 Nigel.doust@blackbay.com Matt Robertson CCO +44 7812 768019 matthew.robertson@despatch.net
Editor's Notes
- What does Click and Collect Mean Buy online and collect in retailer store Buy online and collect in Parcelshop Buy online and collect like a drive thru Buy instore via Kiosk and then collect in store after you wait for 20mins Click & Collect sales worth £3.5bn in 2014 growing 82% to £6.5bn by 2019 (Verdict Research) Predicted that 11% of the UK parcels market (by volume) will be delivered via Click & Collect in 2014 (OC&C) This is predicted to rise to 30% by 2017 (OC&C) More than 66% of British shoppers have used Click & Collect, up from 45% in April (Verdict Research) Retailers seeing massive uptake in their Click & Collect offering, John Lewis have seen a 49% increase in use in 2014 alone (John Lewis) The French click-and-collect their groceries One-fifth (20%) of French consumers have used a drive-thru collection for groceries ordered online. Leclerc, the market leader with 352 ‘Drives’ saw first-half sales in that segment jump 68% to €720m, compared with overall French sales growth of 4.7% to €15.9bn. The retailer estimates that its drive-thrus poach a quarter of their sales from its own stores, but the rest comes from its competitor’s stores. Seeing the trend happening in the US and UK as an exceptional service offering. Deloitte predicts that the number of click and collect locations in Europe will reach half a million in 2015, a 20% increase on the previous year. Click and collect, whereby online orders are picked up from a neutral location rather than delivered to the purchaser's home, is likely to become an increasingly fundamental part of the e-commerce offer and should help maintain its growing share of retail spend. Rising e-commerce revenues should have a proportionate impact on Internet advertising revenues, as well as driving website creation and increasing bandwidth usage. The appeal of e-commerce is well documented, and volumes continue to rise two decades on from the launch of the first Web shopping sites. Delivery has been the key friction point in e-commerce for both retailers – the direct cost to retailers of failed first-time delivery is over £600 million per year in the UK alone – and consumers. In the UK, home-delivery volumes are expected to flatten out in 2015, suggesting that growth in e-commerce has to come from alternative delivery options. In Europe, the UK is currently the most mature e-commerce market, with 13% of all retail revenues from online in 2015, of which about a third will be click and collect. Revenues from click and collect more than doubled in the UK between 2012 and 2014, reaching £5.6 billion from 140 million orders. As of Q4 2014, about 95% of those online stated they planned to use click and collect for some of their holiday shopping. Despite all these factors, Deloitte expects that for many retailers, offering click and collect will simply be a means to remain competitive and in some cases may be a reflex reaction to the launch of a service by a direct competitor 31% bad experience in store – JDA Software Jan 2015 Wait in Queues Lack of customer service Inventory problems
- Click & Collect can enter the cycle at the beginning of the process, and now with the real-time interactive nature of delivery this can also come into play during the later stages of the parcel journey.
- A win-win for retailers and consumers? Click and collect seemingly offers the best of both worlds: a wealth of choice in selection and flexibility in collection. Consumers are offered additional convenience, hopefully encouraging them to spend more; retailers avoid the cost of delivery to the home, and can utilise existing space. But every element of delivery incurs a cost: every square meter of space used for storage displaces space that could be used for display, and any staff member processing a collection is unable to assist other customers. There are other additional costs to consider, for example a retailer may have to pay a rental cost for each use of a collection point. Making purchasing more convenient for customers may also make it easier to return goods – unwanted items, when seen 'in the flesh', can easily be returned at the point of sale. This could stimulate 'buy-to-try' sales, leading to over-stocking of baskets, causing a surge in the volume of returns.