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Logistics plays a vital role in the customer experience. When optimised, logistics can raise product and brand visibility, streamline returns for easier convenience and make for an overall better customer experience – which, in turn, can increase sales. Discover how logistics can boost conversions and keep customers coming back for more.
Logistics as an opportunity within the European market
With the industry-wide shift towards direct-to-consumer (DTC) models, and the simultaneous fragmentation of the fashion e-commerce market in Europe, logistics has become a factor that can make a big difference for both consumers and e-commerce operators. The pressure is on to meet marketplace service level agreements (SLAs), to satisfy customers’ convenience expectations across many countries, and to keep stock rolling across multiple channels. Logistics is also an opportunity to deepen customer satisfaction – building trust and even boosting conversions.
To gain deeper insights into evolving consumer expectations and shopping behaviours, watch Padmaja Bommareddy, SVP of Corporate Development at Zalando, share expert perspectives in this episode of Business Casual:
Logistics operations start impacting the customer journey from the very beginning, in the browsing phase. According to a survey conducted by Appinio in Germany in 2022, an e-commerce platform’s convenience options, which include convenient country-specific delivery conditions, are among customers’ top three most important considerations when shopping online. Playing a leading role in making online marketplaces such as About You, ASOS or Zalando more attractive is the logistics solution, including reliable fulfilment and convenient delivery. The convenience experience here presents a huge opportunity to attract more customers.
Expert tips for ensuring convenience and boosting conversions
When optimised, logistics can do more than just streamline operations. Logistics has the power to raise customer satisfaction, establish trust and boost conversions at every point of the customer journey. Delivering a seamless shopping experience allows e-commerce brands to stand out in a saturated market, with convenience as a unique selling point.
There are six key stops along the customer journey – from delivery to returns to customer care – where logistics can help turn browsers into loyal customers:
Boost logistics SLAs and brand visibility to attract customers
Visibility on multi-brand platforms is a challenge that brands and retailers face with every potential customer. A brand’s visibility on marketplaces like About You and Zalando is often based on performance requirements regarding key service level agreements (SLAs), such as delivery times and returns processing. When a brand meets these standards, it can secure a higher positioning in the product catalogue and stand out amongst competitors. After all, more visibility means more opportunities for conversions.
Tailor logistics to local shopper expectations, from CoD to next-day delivery
As a survey by Zalando in 2023 showed: 14% of European customers abandon their cart if their preferred delivery option isn’t available. By having a reliable logistics setup that offers flexible, country-specific delivery options, brands can reduce shoppers’ cart abandonment and increase their own attractiveness on a local level and across a global scale.
In a survey conducted by Zalando amongst customers in Italy and Spain, 40% to 45% prefer the Cash on Delivery (CoD) option. Offering delivery options that are the standard and familiar in any given country can give shoppers the convenience they need to buy.
Optimise logistics for sustainability and convenience
Delivery is not the end of the customer experience – it’s an opportunity to amaze customers in the long run. For example, by offering order bundling. Research shows that 45% of customers in Europe would wait up to three days longer if their order was bundled into one package. Split shipments are often considered inconvenient and wasteful. So, by giving shoppers the option of order bundling, brands can save up to 20% on shipping costs while improving their image through a convenient and sustainable buying experience. This builds long-term loyalty and trust.
Turn returns into a trust-building opportunity with convenience
The logistics of returns is a pain point for e-retailers, but if handled well, it can also serve as an opportunity. This starts with the returns form, which many multi-brand platforms, including Zalando, provide customers. This form allows them to share their reason for the returns, giving brands valuable insights to improve their overall customer experience, including the returns process. A convenient returns process lowers purchasing barriers and establishes trust.
Streamline logistics to resolve issues faster and boost customer loyalty
If something goes wrong with their order, customers want a speedy solution – especially from e-commerce retailers. The market research company Dynata conducted a survey in collaboration with Zalando and found that 66% of customers say the number one factor of good customer service is the speed of resolving issues.
Here’s where logistics comes in once again. An optimised logistics process allows the customer care team to resolve issues centred on delivery, returns and reimbursements faster. The result: increased customer satisfaction and trust, making for a higher likelihood that the customer will make more purchases in the future.
Offer seamless e-commerce logistics for lasting customer loyalty
Confidence in online shopping is growing, but many consumers continue to be cautious when it comes to fashion e-commerce. For instance, a survey by Zalando in 2023 found that 40% of customers in Denmark rely on Trustpilot for information before making an online purchase – and that number is even higher for Gen Z shoppers, at 52%. The reason for this is to have the peace of mind knowing their items will be delivered and that the company will resolve any order issues hassle-free.
When customers know they can trust a platform to deliver on its promise, customers are more likely to buy from this platform and make repurchases there in the future.
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