This session at DELIVER Europe 2024, featuring industry experts Stuart Hill, CEO of DHL eCommerce UK, and Alexander Schmitz-Hübsch, Senior Vice President of DHL eCommerce, delved into the evolving e-commerce landscape and the critical role of delivery options in shaping consumer buying decisions.

The Impact of Delivery Options on Buying Decisions

• A new DHL online shopper survey reveals that delivery options significantly influence online buying decisions.
• 66% of shoppers say the delivery provider influenced their decision.
• 48% of shoppers have abandoned their basket due to unsatisfactory delivery options.
• 39% of shoppers have chosen not to buy from a retailer because of a specific delivery provider.

These findings underscore the need for retailers and carriers to prioritize convenient and flexible delivery options to meet consumer expectations and reduce cart abandonment.

Key Trends Shaping E-commerce

• Convenience is King: Speed is now just one aspect of convenience. Consumers want flexibility and choice in delivery options.
• Rise of Out-of-Home Delivery: Parcel lockers and convenience stores are gaining popularity, especially in certain European markets like Poland and the Czech Republic.
• International Hurdles: Cross-border e-commerce faces challenges such as fear of fraud, longer delivery times, and customs charges.
• Returns: Free and easy returns remain crucial, but there's a growing need for more sustainable and cost-effective solutions.
• Subscription Models: Subscription services offer potential for both retailers and carriers to stabilize volatile volumes and improve predictability.

Addressing the Challenges

The session also explored strategies for addressing key challenges:

• AI and Personalisation: AI can help personalize delivery options and improve the checkout experience, but speed and accuracy are crucial.
• Out-of-Home Network Expansion: Continued investment in out-of-home delivery infrastructure is needed, but regional differences and potential saturation points must be considered.
• Cross-border E-commerce: Increased transparency, improved delivery times, and streamlined customs processes are essential for boosting consumer confidence.
• Returns Management: Balancing the demand for free returns with cost control and sustainability requires innovative solutions, such as improved data sharing and alternative return methods.

Collaboration is Key

The session emphasised the importance of collaboration between retailers, carriers, and technology providers to navigate the evolving e-commerce landscape and optimize the entire customer journey. By understanding consumer preferences and addressing key challenges, the industry can unlock further growth and enhance the overall shopping experience.