Amazon Shipping BLOG
Striking the right balance: Speed, reliability, and cost in e-commerce parcel delivery
Explore how retailers and e-commerce sellers in the UK, France, Spain, and Italy, navigate the delicate balance between speed, reliability, and affordability in parcel delivery solutions.
As a delivery service provider, we understand the importance of aligning our products and services to the needs of our customers. We often hear from our customers about the importance of speed, reliability and affordability of parcel delivery. It is often a balancing act between these three factors, and will vary depending on the needs of the retailer and their customers.
Read on to find out how retailers and e-commerce sellers balance speed, cost, and reliability considerations within their delivery operations, and how this differs depending on geography and business type.
Read on to find out how retailers and e-commerce sellers balance speed, cost, and reliability considerations within their delivery operations, and how this differs depending on geography and business type.
Reliable parcel delivery service
Bespoke Amazon Shipping market research tell us that reliability is the most important factor when selecting a delivery service provider. We asked industry shippers in the UK, France, Italy, and Spain to rank speed, reliability, and cost in order of importance. Reliability emerged as the front runner, with over half (51%) of respondents ranking it as their top priority. In comparison, 26% placed emphasis on delivery speed, while 22.5% considered cost their key consideration.
That’s probably because a reliable parcel delivery service fosters a positive relationship between retailer and customer. When it goes well, your customer is more likely to feel positive about your brand and choose to purchase from you again, trusting your service. And conversely, a poor delivery experience can reflect badly on your brand, undoing your hard work in brand building.
But reliability isn’t just about parcels arriving with customers safely. Customer service, communication, and transparency are also key to the overall feeling of a reliable service. The ability to resolve problems quickly when they arise, parcel tracking, and keeping customers informed, were the most important reliability features for our shippers.
That’s probably because a reliable parcel delivery service fosters a positive relationship between retailer and customer. When it goes well, your customer is more likely to feel positive about your brand and choose to purchase from you again, trusting your service. And conversely, a poor delivery experience can reflect badly on your brand, undoing your hard work in brand building.
But reliability isn’t just about parcels arriving with customers safely. Customer service, communication, and transparency are also key to the overall feeling of a reliable service. The ability to resolve problems quickly when they arise, parcel tracking, and keeping customers informed, were the most important reliability features for our shippers.
What makes for reliable delivery?
Here are five considerations for choosing a reliable delivery service provider:
1. Reputation
Not only are consumers aware of who’s delivering their products, a retailer’s choice of delivery service provider can also impact consumer purchasing decisions, with 49% of consumers stating that a retailer’s choice of delivery provider influences where they choose to shop in a recent survey.
2. Scalability
As your business grows, so will the volume of packages you need to send. Can the provider maintain the same reliable delivery at scale? The same is true of peak periods when your sales are higher than planned. Having a delivery partner who can flex their delivery capacity to suit your business seasonality will ensure all your hard work in selling doesn't go to waste.
3. Tracking
Tracking provides transparency and is important when offering a reliable service. You might want to ask the provider whether they track packages in transit and how they communicate delivery status and updates with both you and your customers.
4. Speed
E-commerce logistics is increasingly about speed. During 2023 peak, 75% of shippers said that demand for next-day delivery either increased or stayed the same. Can your delivery service provider reliably achieve next-day delivery when you need it? And do you have slower (and often cheaper) speed options to give your customers choice?
5. Packaging
Customers expect their parcels to arrive safely and without damage. It’s therefore important that delivery service providers can ensure careful handling and product-appropriate packaging. Do they offer good quality packaging options, ensuring your products are protected in transit?
Speed and cost compete for second place
Speed ranks higher than affordability for just over half (55%) of the shippers we spoke to. Yet, this varies by country.
While the UK (55%), Spain (55%), and Italy (61%) favour speed over cost according to our internal research, France bucks the trend, with 55% of French retailers ranking cost over speed.
And it also varies depending on the size of the retail business. For retailers sending more than 200 parcels a day, 60% ranked speed over cost, across markets. This number increased to nearly two-thirds (66%) for those shipping over 5,000 packages a day. It would appear that larger retailers are willing to pay more to meet their customers’ speed expectations.
While the UK (55%), Spain (55%), and Italy (61%) favour speed over cost according to our internal research, France bucks the trend, with 55% of French retailers ranking cost over speed.
And it also varies depending on the size of the retail business. For retailers sending more than 200 parcels a day, 60% ranked speed over cost, across markets. This number increased to nearly two-thirds (66%) for those shipping over 5,000 packages a day. It would appear that larger retailers are willing to pay more to meet their customers’ speed expectations.
Product influences on delivery needs
Retailer priorities can vary depending on the product being shipped. Time-sensitive goods such as fresh flowers are a clear example. Speed is all important here to ensure the flowers reach customers in good condition.
Retailers selling high-end goods also prioritise speed, with 62% of high-end goods retailers ranking speed over cost, and 46% saying their brand reputation means they must deliver at speed.
Discount retailers can face delivery speed demands too. 61% rank speed over cost, saying speed allows them to remain competitive.
Retailers selling high-end goods also prioritise speed, with 62% of high-end goods retailers ranking speed over cost, and 46% saying their brand reputation means they must deliver at speed.
Discount retailers can face delivery speed demands too. 61% rank speed over cost, saying speed allows them to remain competitive.
Perfecting the balance
By evaluating what matters most to your business and your customers, you can strike the right balance between speed and reliability versus cost. While reliability is the pre-requisite for most retailers and e-commerce sellers, the balance between speed and affordability will depend on various factors such as the products you sell, business size, location, and cost considerations.
Ship with us
At Amazon Shipping, we provide reliable, fast, and competitively-priced parcel delivery solutions for retailers and e-commerce sellers. Find out more about the services we offer and how we can streamline your parcel delivery solutions by choosing your business size below.
Want to send parcels with Amazon Shipping in the UK?
Get in touch to start your journey today.
© 1996-2024, Amazon.com, Inc. or its affiliates. All rights reserved.