From delivery to loyalty: How retailers can leverage e-commerce shipping to grow their business

Picture this: A customer eagerly awaits their online order. But the delivery arrived late, tracking updates were incorrect, and to top it off, the package was damaged. These delivery mishaps don’t just cause frustration—they can have a lasting impact on customer loyalty.

To get a deeper understanding of delivery’s role in customer satisfaction and purchasing decisions, Amazon Shipping collaborated with Retail Economics to survey over 6,000 EU consumers. The survey revealed an important insight: The difference between a good and bad delivery experience doesn’t just impact customer satisfaction—it can influence long-term brand loyalty. Nearly a third (30%) of consumers said they had stopped shopping with a retailer after a poor delivery experience.

In today’s digital-first retail landscape, this statistic highlights a crucial logistics challenge: How can retailers meet and exceed customer expectations to retain loyal customers? Keep reading to explore consumers’ top delivery frustrations and what retailers can do to avoid them.

Frequent online shoppers, the bedrock of a retailer’s customer base, are the most likely to abandon a retailer when they experience delivery issues. The impact varies across demographics, with Gen Z and Millennial consumers being particularly unforgiving. Nearly half (47%) of consumers under 35 who shop regularly online have stopped buying from a retailer due to a poor delivery experience. Similarly, of high earners (earning £65K+ (€77k+) yearly) across all ages who shop regularly online, 37% reported the same behaviour.

This raises the stakes for retailers. Delivery mistakes don’t just jeopardise sales, they also risk losing a high-value, potentially lifelong customer.

Negative delivery experiences are a deal-breaker for many customers. Let’s break down the top three delivery mistakes and explore how retailers can address them.

Customers are frustrated when they receive the wrong item or a damaged product. Over a third (38%) of respondents cited this as their top complaint. Behind the scenes, these issues often stem from outdated inventory systems or rushed packing processes. Retailers who leverage AI-driven order management and invest in sturdy, high-quality packaging can ensure that what customers order is exactly what they receive—intact and ready to use.

Poor customer service can transform a minor delivery hiccup into a major reputational risk. Our research found that 17% of online shoppers cite poor communication as their top delivery frustration; this includes long wait times, unhelpful responses, or worse yet, no response at all. Younger shoppers, in particular, are quick to voice their dissatisfaction online, leaving negative reviews that linger. Retailers who prioritise empathetic, well-trained support teams and offer multiple channels for quick resolutions can turn even a negative experience into a chance to build trust and loyalty.

Finally, returns can be a big pain point for customers. Online shopping provides the convenience of shopping from the comfort of home. But add in a cumbersome returns process with unclear policies and no prepaid returns label, and suddenly, online shopping feels anything but convenient. In fact, 12% of consumers surveyed find complicated or costly returns the most frustrating element of a poor delivery experience. Retailers who simplify return processes, communicate policies upfront, and include prepaid labels, can alleviate this frustration for customers, and remove barriers to repeat purchase.

As e-commerce continues to evolve, addressing these fundamental delivery challenges becomes increasingly crucial. Success comes from understanding that reliable delivery isn’t just about getting packages from point A to B, but rather it can be a key driver of customer loyalty and business growth.

Want to discover more consumer delivery insights to inform your logistics strategy? Check out our report, Getting delivery right: Mastering customer loyalty through delivery excellence across markets, to explore what consumers want from their delivery experience, how purchasing needs vary by customer groups, and strategies to build brand loyalty.

A seamless delivery experience can turn one-time buyers into repeat customers. With Amazon Shipping, you get fast, reliable, and flexible delivery solutions designed to enhance customer satisfaction. Get in touch today to see how we can support your business.