Global supply chain technology solutions provider Neopost Shipping has published a new report, Great Expectations: Shipping, CX & Gen Z, in the UK, detailing the influence that shipping has on e-commerce conversion and retention.
The report found that online shopping bag abandonment by Gen Z is strongly influenced by the lack of shipping options, with 98% of Gen Z consumers stating that they will abandon their cart if a preferred shipping option is unavailable to them at checkout.
Following this, 44% opted to then buy from a competing online brand, 33% attempted to visit the brick-and-mortar store of the same brand, and 21% planned to visit a mall to buy the items.
It also found that retailers are not keeping up with Gen Z shipping demands. Compared to the previous year, Gen Z’s willingness to pay for new types of shipping services such as hyperlocal (1-3 hours), same-day and weekend or after-hours delivery, has increased.
Additionally, Gen Z’s demand for these consumer-centric shipping services is significantly higher compared with the average consumer, yet only up to a fifth of retailers offer them.
There is also a strong appetite by Gen Z for speed-based delivery services, as detailed in the report. Gen Z is more committed compared to the average consumer to shop online if retailers can have their orders shipped faster.
Of those surveyed, 71% of Gen Z will increase their basket size to meet the spend threshold for free hyperlocal delivery (1-3 hours) compared with just 56% of the general population. Gen Z will also shop more online if next-day delivery was available. This is compared with only 25% of the general population.
Matthew Mullen, senior vice president, Americas, at Neopost Shipping, said, “Gen Z is changing the e-commerce playbook by challenging retailers to elevate the customer experience. Shipping is a key element of online shopping, so retailers who are adept at working through its complexity to leverage it as a revenue-driving CX tool will reap great returns.
“Gen Z is instant gratification personified. In a market where the likes of Amazon are pushing the boundaries on what a great shipping experience looks like, retailers rarely get a second chance with young and savvy consumers who won’t think twice about abandoning brands that cannot provide the shipping choice and convenience they desire.
“It’s a known fact that shipping and fulfilment can be operationally challenging for many retailers. Instead of taking on the burden of building everything from the ground up, leverage the supply chain innovations that are in the market – such as updating your technology stack with a shipping software platform, trialling smart parcel lockers, and accelerating the process of getting online orders out the door with automated packing machines.”