For physical shops, delivery has become an all but essential step. This logistics boom was amplified by the health crisis and the many closures retailers had to face. To cope and keep trading, many of them decided to build an online shop and start delivering. Which raises a question: which delivery solutions should you choose for your physical shops? This guide sets out the advantages and drawbacks of the different delivery methods, so you can make the right choice.
Why do delivery solutions matter so much for physical shops?
Whether you are a hybrid business with an e-commerce site and physical shops, or a purely online retailer, you have to offer and organise a range of delivery options for your customers. Giving them a choice of delivery methods lets you satisfy the largest possible number of potential buyers by meeting their needs and preferences.
The direct consequence is that customers find the delivery method that suits them. They are therefore happy with the experience and the service your brand offers. When you are looking to build loyalty, offering these different options is an unarguable part of the process.
Several studies show how much this criterion counts. According to a study by IFOP, the leading cause of online basket abandonment is delivery conditions. That puts it ahead of factors such as price, the product itself and security.
The quality of the delivery service is just as decisive for customers. 32% of online consumers say they would advise friends and family against an e-commerce site after a bad experience. (source IFOP)
Your delivery strategy should therefore be settled as soon as you build your online sales strategy, by deciding which delivery solutions you intend to offer and which ones you will be able to carry out in the best possible way.
Which delivery solutions should you favour for your physical shops?
There are plenty of delivery options now, and it is essential to work out which ones suit your business best. Bear in mind that focusing on a single way of sending parcels can be risky: we are in the age of hyper-personalisation and consumers want a choice.
Let us look in detail at the options open to you:
1. Click and collect, or collection in store
In retail, “click and collect” is when customers buy an item online and can come and pick it up in the shop.
This delivery solution gives customers control over their own time and the chance to fetch their item whenever they want.
Of course, shops offering the option have to be completely transparent during checkout, so that customers do not turn up before the products are ready to collect.
That can often be handled through a delivery management app or an effective communication system between the shop and its customers, so they know when their orders are ready.
Advantages:
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- A good mix of digital and in-store shopping: customers can browse your product catalogue on your website beforehand and then come and see the items in the shop. Store visits also generate additional sales from time to time.
- Delivery charges saved: because they travel to a point of sale, they avoid the costs that come with delivery. From the retailer’s point of view the benefit is just as large: you save on delivery costs.
- A sought-after option: customers are now used to seeing this among the delivery and collection options on offer. They can pick whatever suits them best at the moment of purchase.
Drawbacks:
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- Stock management: although the retailer avoids delivery costs, stock still has to be managed properly. To avoid running out, in-store stock has to be synchronised with the stock shown on your website, in real time. The deadlines set during the purchase process depend on it.
- Very fast collection times: directly linked to the previous point, consumers choose click and collect because it is generally much faster than the alternatives. They expect immediacy, and collection times have to match that.
Collection by car
Closely related to click and collect, another parcel collection system has appeared recently. Some companies let customers collect their parcels without leaving their car.
Once the online purchase is made, customers come to the shop at the agreed day and time. When they reach the car park or the area set aside for it, a member of staff brings the ordered goods straight to their car.
It is a relatively new model that became more common during the pandemic. Customers like the convenience and the safety of the process, especially when the parcels are heavy.
2. “Ship from store”, or shipping from the shop
Ship from store is a delivery service in which retailers ship items directly from the shop.
Delivering from a shop calls for advanced logistics orchestration to track stock in each shop and the availability of delivery providers in that area.
Integrating provider data with their point of sale lets retailers make sure they hold the real-time stock and collection availability data they need to offer accurate delivery options at checkout.
Advantages:
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- Less risk of running out of stock: with stock in the shop as well as the warehouse, running out is rarer.
- Higher sales: holding stock in the shop as well as the warehouse means less risk of a product being unavailable when someone wants it. Ship from store therefore lifts your sales and your revenue.
- Shorter delivery times: because the parcel is sent from the location closest to the customer, delivery times drop considerably.
- Better responsiveness: stock held in several places makes it easier to absorb a sudden spike in demand.
- Better customer satisfaction: consumers also get a wider choice of products. Meeting their needs with a fast delivery service makes them less tempted to turn to a competitor. For consumers who want everything immediately, this is a real asset.
Drawbacks:
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- Space has to be optimised: holding stock in the shop has plenty of advantages, but a point of sale still has limited space. That is why optimising the storage space the shop has is essential.
- Synchronising online and in-store purchases: if a customer buys a product online, that same product may also be sold in the shop. Clear rules and an instant update of available stock are therefore essential to avoid an overlap.
- Managing the space packing takes up: packing operations are complex. They need room to store boxes and all the equipment involved, in a shop where space is already tight. Once again, optimising space is essential.
- Training staff: shop staff have skills in selling and advising customers, but the knowledge needed to prepare and manage online orders properly is quite different. Staff therefore have to be trained for this new logistics role.
3. Tailored delivery
As the name suggests, delivery by appointment takes place at the location and within the time slot the customer wants. Tailored delivery answers the demand for hyper-personalisation that consumers keep raising.
They now want to be able to take delivery anywhere: at home, at the office or at a friend’s. And at a time when they are sure they can receive the order.
Advantages:
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- A personalised service: delivery by appointment is a hyper-personalised service in which every customer gets what they want.
- Customer satisfaction: because this delivery method meets the needs of every customer buying from your shop, you come closer to satisfying all of them. If the delivery goes well, those delighted customers will come back and buy from you again.
Drawbacks:
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- Complex logistics: ideal as this type of delivery is for keeping customers happy, it demands complex logistics to set up and run day to day.
- Tailored delivery is expensive: the complexity of this method has a cost, and not a small one, particularly if it is not fully optimised. That is why home delivery, a variant of tailored delivery, generally costs more than other methods. The difficulty is that deliveries cannot always be combined, which pushes the cost up.
How do you make the right choice?
Tip 1: Diversify and offer several delivery solutions
As explained above, it is better to offer your customers several delivery solutions if you want more of them to be satisfied. They all have different budgets and different needs. Focusing on delivery by appointment, which costs more, risks driving a sizeable share of your customers away. Pick-up point delivery or click and collect will suit them better.
Not forgetting the other customers who are willing to pay for home delivery and will personalise it as they please. In short, everyone gets what they want.
Tip 2: Choose your external logistics provider carefully
Another important point in setting up different delivery solutions for your physical shops is calling on one or more external logistics providers. Setting up several delivery options, running them day to day and carrying them out takes complex coordination and time. And the delivery itself counts just as much towards success and customer satisfaction.
An ally such as Shippr to handle deliveries for your physical shops is a major asset. Whether it is for part of your deliveries (when you face unexpected spikes in demand, or busier periods such as the sales or the end-of-year holidays) or all of them, Shippr deliveries are tailored, for you as much as for your customers.
Ship from store, express or scheduled delivery, delivery rounds, even restocking between your physical shops … Choose the delivery services you want to offer your customers and Shippr’s professional partner couriers take care of them.
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