The Battle for online sales is won or lost in the delivery and returns options.

Richard Tucker - National Account Manager

Presently part of the Business development team with Collect+, focused on delivering market leading convenience returns and deliver to store solutions within Retail, online, 3PL and Fulfilment and within ecommerce partners with businesses such as Early Learning and Mothercare, Asda Direct, Cloggs, Rocket Dog, Dunelm and DSGi amongst many other Retailers who are keen to make a difference to their business.

15 years progressive track record in Fulfilment, Home Shopping and Ecommerce, Returns Management , FMCG cost saving solutions within Retail, FMCG and ecommerce with businesses such as Ideal Shopping, WH Smith, Oakley, Unipart, Docdata, Argos, Bathstore and Woolworths.

Founding Partner of myWarehouse pay-as-you go Fulfilment business aimed at SME online retailers and developed partnership relationships with Ebay, Venda and Paypal and consulting on businesses such as Jamie Oliver’s Fifteen Foundation.

Who am I?

The Battle for online sales is won or lost in the delivery and returns options.

Who defines best practise when it comes to returns and delivery options?

Is it the Retailer or is it the Customer?

•What are the options to the customer?•Are your returns options easy to find?•Are your delivery options for the customer flexible?•What is your exchange policy?•Is it free of charge, Post Office or Van based collections?•Will your customers hop with you again?

The way that consumers buy goods and services has changed dramatically over the pastfew years. Technology now plays a much greater role in how we shop, whether we’rebrowsing the web using our computers and laptops or using our mobile phones.

Best Practice

The Hitwise Hot Shops List provides a unique perspective on how the online retailers are performing in terms of attracting visitors to their websites.

I used to play a game with my little girl called favourites, so other than your own business of course, which is your favourite on line store?

My Daughters of course is the Disney Store, mine would be either the Apple Store or iTunes, I like look, feel, navigation and available information. www.store.apple.com/uk

•Clear information on delivery options in the middle of their opening first page•Delivery Cost information, Tracking your order•A full how to return your item online, no direction to a store

So, which is your favourite store and why?

Favourites?

Multichannel shoppers spend 82% more in each transaction than those who only shop in store, a new report suggests.

Researchers for Internet Retailing found that 38% of all retail transactions across clothing, electrical and home sectors were now influenced by the internet. That breaks down as 21% bought directly online and 17% which are multichannel purchases.

Paypal, said: “More and more retailers are adopting a multichannel approach to their platforms which has led to a 23% year-on-year performance, demonstrating the benefits of giving consumers the

flexibility of shopping when they want and how they want.”

Research conducted by Snow Valley and Metapack in early 2011 focused on 229 UK online stores. An order was placed on each of the 229 websites. The delivery process was monitored and is the

subject of the Online Retail Delivery Report 2011.

www.snowvalley.com/research

Multichannel Shoppers

One of our customers was very open in the early days on advising us how they got it very wrong, a well know supply to Retailers launched their own website. With poor product details, new customers trying them for the first time, they asked their customers to do too much to send back a return.

They believe their main failing was asking customers who had order the wrong size to take their item back to the Post Office and returnat the customers cost. The result was not many exchanges, just refunds and they believe the customer just lost interest.

They now promote their returns and depending on season switch between the convenience of Free returns and customer refund returns.

•Poor returns experience lead to 58% of online shoppers permanently shunning outlets•£1.3bn worth of online purchases returned annually•12% of online shoppers have not returned unwanted items, leaving them out of pocket and not using that retailer again.

Returns Options

This year only half of the 229 retailers tested in the report gave us options for how we returned an unwanted item bought online. The other half offered a choice of methods, either allowing return by post, return by store, or offering a carrier pick-up. The multi-channel experience is also limited, with only 52% of retailers with stores allowing us to return the item to a shop.

•Only 49% of retailers offered a choice of methods for returning an unwanted item •23% of retailers offered to send a carrier to pick up the item •5% of retailers insisted on carrier collection •66% of larger retailers supported return to store, and 41% offered a carrier collection •52% of the retailers with a store network supported return to store•59% of retailers had a simple ‘complete form’ process for post return •56% of the orders returned by post came with no labels, we had to create our own•35% of retailers covered the cost of return•30% refunded the original delivery charge•57% of retailers covered the cost of return, refunded the delivery charge, or did both •30% of the larger retailers covered neither cost

Our customers tell us 58% of Customers have stopped shopping with a retailer after a poor returns experience

Returns Solutions

So with these findings in mind, let me ask you some questions about your own business and your customer experience when it comes to Returning goods to you.

•What were the options for returning unwanted goods? •What was the procedure for the customer? •Who covered the cost of the return and what was refunded? •What was the retailer’s returns policy and was information provided to the customer? •How long did it take for the refund to be credited back to the customer?•Do you make people go to the Post Office? Opening Hours?•Do they have to wait in for a Collection?•Are your Returns Terms easy to find?•Will your customers shop with you again if they have problems with returning to you?•What are your competitors doing?

Remember: The Battle for online sales is won or lost in the delivery and returns options.

What is your Returns Strategy?

Over the past few years we’ve seen a definite increase in the number of delivery options that retailers offer to customers. In most cases that choice is still limited to a standard service and one premium service that arrives next day or within 2 days. So again, let me ask you some questions about your own business and your customer experience when it comes to Delivery options.

•What are your delivery options? •Do I have to pay or is it Free? •How quickly can I get the item I order?•There is no one at my house in the day, what will happen if there is no one in?•What happens if I get carded, will I shop again if its a pain?•Will you leave it with a neighbour or behind a bin, what happens if this goes missing?•Will you let me know the progress of my parcel?•Will your customers shop with you again if they have problems with getting the product from you?•What are your competitors doing?

What about your Delivery Options?

The Snow Valley Online Delivery Report 2011 said that 69% of retailers now offered at least two delivery options, generally standard and next day. It saw a marked increase in delivery flexibility, with retailers offering a range of options

•59% of retailers that gave an order deadline had set it after 2pm•Only 4% of the retailers insisted on delivering to the billing address•42% of the retailers could deliver to the UK only •46% of the retailers linked off the homepage to the delivery information page

One of our customers described this whilst thinking about their retail store, a customer walks into your store because they like the window display, they find it easy to navigate the store, look at products, sizes, colour’s and place items into their shopping basket.

As they get to the checkout and join the queue, there is something they do not like, options they are not happy with, people discussing problems, something that puts them off completing their purchase, they put down their basket and walk out of the store!

•Retailers say that 1 in 10 of home deliveries fail•44% of Customers say delivery concerns stopped them making a purchase

Flexible Online Delivery

Customers also want and expect more flexibility today on where their goods are delivered. We’re seeing lots of improvements in this area: only 4% of the retailers insisted on delivering to the billing address, down from 17% in 2005.

•‘ Delivery’ was the most popular link at the bottom of the homepage; ‘Help’ at the top •77% of the retailers allowed the customer to track their order online •4% of the retailers sent a text message alert regarding our delivery •Larger retailers were more likely to send texts – 11% did so •Only 28% of sites returned any useful information when we searched for ‘delivery’ •19% of the retailers supported ‘collect from store’.•21% of retailers allowed us to add special delivery instructions, such as ‘leave with my next door neighbour’.•13% of the retailers offered free delivery as standard on everything.•69% of the retailers offered a choice of delivery options to the customer.•Next-day delivery is now available on 60% of sites. •17% of the retailers offered a nominated day delivery service, up from 14% last year.

Delivery Convenience

Introducing

Backed by two experienced and powerful businesses.

Collect+ is the convenient way to send and collectparcels from your local corner shop. “No more dropcards, lost Saturdays or lunchtime queues”.

A non integrated instant success Returns service thatis easy for customers, is cost saving for retailers andprovides tracked returns for all and a Delivery serviceto solve the biggest pain point for online shoppers andincrease sales for Retailers.

• We save Consumers from the inconvenience of a trip to the post office to send a parcel

Collect+

• Over 3,800 stores in the UK including NI• Typically open from 7am til’ late 7 days each

week• Over 500 stores within London, many of which

are open 24/7• Roll out over 100 stores per month from Jan 11• Coverage will reach 90% of urban population

within 1 mile of a store• Sites are chosen for secure storage, ease of

access and a desire to partner Collect+• Over 40% of our customers visit a Collect+ store

outside of Post Office opening hours

Collect+ Stores

We offer a Returns service that is easy for customers,is cost saving for retailers and provides tracked returns

• Customers can now return unwanted purchases via their local Collect+ store

• 3-5 days delivery back to your warehouse, at least 1 day quicker than Royal Mail

• Customer receipt with tracking information• Electronic manifest provided daily to returns

delivered back to your DC• Single fixed fee for all of UK• Competitive pricing vs. Royal Mail• 40% of returns taken to store outside of 9-5

Return to Store

We provide a Delivery service to solve the biggest painpoint for online shoppers and increase sales forRetailers

• Goods ordered online can be delivered to a local Collect+ store for pick up at a convenient time

• Client web checkout integration required for Collect+ store locator

• Delivery to store within 24 / 48 or 72 hours • Real time tracking from retailer to store• No carding, full communication• Over 80% of Deliver to Store parcels are collected

the same day• Delivery to store 30% increase in December bad

weather

Delivery to Store

Collect+ Customers

Our finding’s show that there is still a way to go, improvements could be made in the pre-delivery stages and the management of failed deliveries is still a cause for concern and Customers have stopped shopping with a retailer after a poor returns experience .

But by working together, improving these areas, insuring home delivery and returns are convenient, flexible, and dependable.

The Collect+ website www.collectplus.co.uk allows you to self service and use the Collect+ services as an individual or linked through your account, so feel free to trial a Collect+ parcel yourselves using promo code: parcel4you at the checkout.

Any questions today then please ask? If you would like to meet to discuss your business in detail then please let me know.

Thank you for your time.

Richard TuckerNational Sales Managere. richard.tucker@collectplus.co.uk m. 07587 886767

 

Thank you & Questions