Shoppers demand fast service despite supply chain challenges

Consumers are concerned about product shortages and shipping delays this holiday season, but not enough to change the instant-gratification based buying behavior they’ve become accustomed to over the past year and a half. And as peak holiday shipping season gets underway, that means shoppers will put retailers and their supply chains to the test once again this year.

That’s according to the 5th annual holiday survey from last-mile technology firm Convey by project 44, released Wednesday. The survey of 1,300 U.S. consumers found that despite their concerns, most shoppers don’t plan to start their holiday shopping early—and they still expect fast, free delivery. This creates a “catch-22 for retailers during the most critical time of the year,” the study’s authors said.

Among consumers’ greatest concerns this season: out of stock items (50%); shipping delays (46%); high prices of goods (46%); and higher shipping costs this year than last (41%). Despite those concerns, 57% of survey respondents said they plan to start shopping at the same time or later than last year, and just 37% of those said they are willing to give retailers more than one or two extra days to deliver items.

“Shoppers are going to put retailers to the test this year, despite awareness of the challenges sellers face,” according to Carson Krieg, director of industry solutions and strategy at Convey by project44. “Free, fast, on-time delivery is the expectation, thanks to Amazon’s dominant influence on retail. This year’s survey reveals that transparency on pricing, estimated delivery dates, and shipment delays is of utmost importance for sellers to remain competitive.”

Other study findings include:

• Retailers should assume that their customers shop at Amazon too—and that those shoppers bring expectations set by the online retailer’s speed and efficiency. Eight out of 10 say their household has an Amazon prime membership, and Prime membership rises to 89% for more affluent consumers. Nearly 9 in 10 shoppers are likely to buy from Amazon this holiday season.
• Even amidst warnings of shipping disruption and higher costs, most Americans say free shipping (88%) and on-time delivery (88%) are important to the overall holiday shopping experience. Almost all (98%) want retailers to notify them if their delivery will be late and two-thirds (67%) say they won’t shop with a brand again after a poor delivery experience.
• The ability to order online and receive the item that day is important to shoppers, particularly GenZ, the study found. Ordering online for same-day store pickup is important to 42% of shoppers overall—and 54% of those ages 18-29. Same-day home delivery is important to 36% of consumers—and rises to 48% for younger shoppers.

Austin-based Convey provides a Delivery Experience Management (DEM) platform that combines real-time visibility, post-purchase experiences, and advanced insights and analytics for managing last mile delivery. The company was acquired by logistics software vendor project 44 in September.