Ecommerce Fulfillment Statistics

Today’s top ecommerce Fulfilment statistics provide us with some useful insights into the current state of the online shopping landscape. While there are multiple factors contributing to whether or not a digital seller is successful, few things are more important than ensuring packages are delivered promptly, and according to buyer expectations.

In a world of instant gratification, same-day delivery, and evolving consumer expectations, ecommerce retailers can’t afford to underestimate the power of rapid Fulfilment . Currently, the global ecommerce market is expected to reach a value of around $58.74 trillion by 2028, and companies who want to “cash in” on the industry need to be prepared.

Today, we’re going to be taking a closer look at some of the major Fulfilment stats proving the importance of having the right delivery and shipping partners in 2023 and beyond.

General Ecommerce Fulfilment Statistics

In the past, many online shoppers expected online orders to take longer to reach them. Now, thanks to Amazon Prime and other rapid delivery services, expectations are changing.

According to one report, around 62% of shoppers expect their orders to arrive in less than three days – even when they choose free shipping at checkout. Here are some general statistics highlighting the state of ecommerce Fulfilment as we move into 2023.

3 quarters of customers will still pay for faster shipping

According to a report on the state of shipping by RetailDive, the majority of today’s consumers expect Fulfilment from online stores to be both free, and fast. However, they’re not entirely opposed to paying extra for fast shipping. Around three quarters of consumers say they have paid more for fast shipping in the past, including 90% of high earners.

However, the research also shows consumers are now reluctant to pay anything over $7 for expedited shipping. This is a huge reduction from the costs often suggested by online retailers.


Most consumers rank fast and free shipping as equally important

When asked whether they’re more likely to make a purchase as a result of free shipping or faster delivery options, most customers rank the two concepts as equally important. According to the EFulfilment Service, shipping price and speed are equally waited. However, 70% of customers still choose the least expensive shipping option when making an order.

Only around 23% of consumers say they would choose same-day delivery, and 25% say they’d pay a premium for it. In fact, only 2% of customers would pay more than $3 for same-day delivery.

(EFulfilment service)

96% of companies now offer free shipping options

Thanks to solutions like Amazon Prime gaining more attention in the digital world, free shipping has become a common option among retailers. According to the State of Shipping report, around 96% of retailers offer zero-cost shipping options.

Unfortunately, very few brands in the study were meeting customer expectations when it came to offering the right combination of speed and cost savings. In fact, only 1% of fashion and apparel brands achieved their shipping speed goals.


Around 165 billion packages are shipped in the US each year

Studies indicate that online shopping, and therefore package delivery across the United States is increasing at a phenomenal rate. The number of packages being shipped throughout the US has increased by 20% year-over-year. With 165 billion packages delivered throughout America on an annual basis.


75% of customers expect shipping to be free

In the past, most consumers expected to only access free shipping after their cart value reached a certain point. However, as of 2020, around 75% of customers now think shipping should be free on all orders. This is an increase from 68% the year before.

Baby boomers were most likely to demand free shipping in the study (88%), while Generation Z (76%) and Generation X (77%) were slightly less likely to expect free delivery.


How Fulfilment Options Influence Conversion Rates

Consistently, fast and inexpensive shipping remains a top demand among consumers. In some cases, customers are more likely to make a purchase when they can access the right shipping options, than they are when prices for products are lower. According to one survey, however, delivery expectations (45%) were ranked as the most common challenge faced by online stores.

53% of customers say they’d be more likely to make a purchase when offered free shipping

There are many factors which convince a customer to make a purchase at checkout. However, free shipping is a major benefit for most consumers. In 2020, around 35% of customers said they’d be more likely to make a purchase after reading a positive review from another customer.

However, 53% of consumers said that free shipping would improve their chances of buying an item they may not have purchased otherwise online.


93% of European shoppers say they’re influenced by delivery options at checkout

Fast and inexpensive shipping options may be crucial to converting customers today, but it’s also important for companies to offer a variety of shipping options. According to the online shopper survey conducted by DHL, 93% of European shoppers pick the online shops they want to buy from based on their number of delivery options.

Interestingly, around 58% of European shoppers also said they were willing to wait longer for their delivery if this meant they could access more sustainable Fulfilment practices.


22% of shoppers abandon a purchase because delivery speed is too slow

Unexpected costs are a common reason for customers to abandon a purchase online. However, many consumers also give up on a purchase because they’re concerned they won’t receive their packages fast enough. According to 2022 data from the Baymard institute, while 16% of consumers left the checkout because they couldn’t see all the costs up-front, 22% said they left the store because the delivery speed was too slow.

The Baymard Institute also found that around 17% of online shoppers abandon an order because the checkout process was too long or complicated.


25% of shoppers would abandon carts due to an unexpected shipping cost

According to VWO, around 25% of online shoppers say an unexpected shipping cost would prompt them to abandon their carts completely. This suggests it’s crucial for business leaders to be transparent about all of the costs on their store straight away.

When asked about other reasons for abandoning their cart, 22% of consumers say they would avoid checking out if the website they’re on asks them to create an account. Additionally, 15% say they don’t make a purchase when they’re concerned about payment security.


56% of online shoppers will abandon their carts when concerned about delivery

According to the “State of Shipping Report” for 2022, around 56% of abandoned carts are connected to concerns about delivery or shipping. Speed of delivery is currently the number one decisive factor determining whether a customer will fail to make a purchase, followed by price of shipping.

Lack of options for Fulfilment , such as same-day delivery and in-store pickup were also identified as core reasons for cart abandonment, as customers look for more convenient, faster Fulfilment options. Time to delivery in the report was also a key driver of “purchase intention”. In fact, more buyers said fast shipping pushed them to make a purchase than a low price.


63% of customers give up on a purchase when shipping costs are too high

As mentioned above, free shipping has become a common expectation among many online shoppers, to the point that around 63% of consumers say they’ll abandon a purchase when shipping fees are too high. Another 36% of consumers also say they’ve left a store without checking out because they needed to wait too long for their order to be delivered.

This means shipping is more likely to drive cart abandonment rates than other common issues, like having to fill out a complex order form.


74% of online shoppers say free shipping is among the most important factor influencing their checkout behavior

According to one study, almost three quarters of all shoppers think free shipping is an important factor in determining whether or not they’ll complete a purchase. In fact, 94% of consumers have taken an action to ensure they qualify for free shipping, such as adding more items to their cart, or entering a discount code.

This indicates that offering free shipping as an option at checkout could be an ideal way for companies to increase their average order value and reduce cart abandonment.

(EFulfilment Service)

If a purchase doesn’t arrive within 2 days of a delivery date most customers will avoid shopping with the same company again

Excellent and reliable shipping experiences are an important factor in preserving customer loyalty, and reducing churn. According to studies, around 69% of shoppers say they will not purchase from the same company a second time if it takes more than 2 days longer than the agreed shipping time to deliver a product.

This showcases how crucial it is for companies in the online retail world to ensure they provide transparent insights into shipping processes.

(Website Magazine)

illustration of a cat climbing a ladder

Ecommerce Fulfilment Statistics on Online Sellers

Meeting customer expectations in regard to order Fulfilment can be a challenging concept for today’s companies. Indeed, many ecommerce retailers now know they need to be able to deliver fast and cost-effective shipping to convert their customers. However, many are struggling to meet expectations.

The average cost to fulfil an order for online retailers is 70% of the order value

According to the EFulfilment service, online retailers do spend quite a lot of their budget on managing Fulfilment for customers. On average, the cost to fulfil an order is about 70% of the average order value for each purchase.

The report also found that despite these efforts, the majority of companies are still failing to live up to customer expectations. The majority of brands don’t deliver the same day shipping, express shipping, and specified times for deliveries that consumers need. Around 97% of consumers now expect access to same-day shipping as standard.

(EFulfilment service)

Around 23% of all online sales are fulfilled via dropshipping

To simplify the Fulfilment process, many online retailers are turning to new methodologies, like working with dropshipping brands. Around 23% of all online sales are fulfilled using dropshippers. Additionally, dropshipping is the go-to Fulfilment model for 33% of online stores.

According to studies, ecommerce retailers who use dropshipping can achieve up to 50% more profits than retailers who manage their own inventory in a warehouse.


31% of online retailers say order splitting makes Fulfilment more costly

Around 31% of online sellers in one study said customers who split their orders between multiple purchases make Fulfilment more complex. Additionally, 28% of the retailers surveyed also said that low ship velocity, and a high number of returns are the most expensive part of managing delivery.

This could be an indicator that companies need to offer customers more options to combine orders, even after making a purchase.

(EFulfilment service)

Almost half of all online sellers do their shipping from one warehouse

According to the EFulfilment service, around 47% of small online retailers manage all of their shipping requirements from a single warehouse. Around 20% only use a single store, 18% use multiple stores, and 12% rely on third-party logistics and dropshipping companies.

Alternatively, around 40% of mid-sized online retailers say they use multiple warehouses to manage their shipping needs. Additionally, 1 in 5 (20%) of all mid-sized sellers say they’re constantly reliant on third-party logistics companies and dropshippers for shipping.

88% of enterprise-level retailers need multiple warehouses to handle all of their shipping requirements.

(EFulfilment service)

Approximately half of online sellers are upgrading their software

As concerns about meeting customer expectations for shipping and delivery continue to grow, around 48% of companies say they’re investing in tools like LTL transportation management systems to address customer needs. This makes sense, as 24% of comp0anies said they felt restricted by technology limitations in 2021.

At the same time, around 36% of respondents said they are now automating their processes for sorting through parcels to help reduce shipping times. Unfortunately, 77% of respondents also said that labor shortages have influenced their operations in some way.

(Logistics Management)

illustration of a cat climbing a ladder

Amazon Ecommerce Fulfilment Statistics

One of the core reasons why Fulfilment is becoming more complex for today’s online retailers, is that industry giants are helping to set higher expectations. The majority of today’s consumers expect same-day and next-day delivery because they’re used to having these options from Amazon.

30% of shoppers say fast delivery is the main reason they shop with Amazon

According to EFulfilment Service, many consumers shop on Amazon simply because they know doing so should allow them to access faster shipping. While 49% of customers say they choose Amazon as their go-to store out of convenience, around 30% say Amazon is their number one retailer because it delivers faster shipping.

There are more than 200 million Amazon Prime members worldwide

To access exceptional speed from Amazon, many consumers are willing to pay a subscription fee for next-day delivery. In fact, 200 million people worldwide are members of the Amazon Prime subscription service. This includes more than 153 million people just in the United States.

According to Statista, in 2021, around 65% of all Americans were Prime members. What’s more, prime members are more likely to have a positive perception of Amazon services than those who don’t pay for Amazon Prime. Around 40% of Prime users place between two and four orders per month with the retail giant.


Amazon Prime Members Spend four times as much as non-Prime members

According to one report, Amazon Prime members spend around $1,968 per year on average on products from the ecommerce marketplace. This adds up to approximately four times as much as non-Prime members spend. While it’s difficult to say for certain why Prime members tend to spend more, some experts believe it’s because consumers want to get their “money’s worth” from their subscription.


Amazon sells around 1.6 million products per day

Amazon’s astronomical growth has led to a massive increase in its shipping operations. On average, the company ships around 66,000 products per hour, or 19 orders per second. Additionally, in 2019, Amazon third-party sellers and retail stores sold more than $385 million per day in products.

(OJ Digital)

illustration of a cat climbing a ladder

The Current State of Ecommerce Fulfilment

Currently, the statistics show that countless companies are investing more time and effort into delivering the best possible Fulfilment experiences for their customers. As customer expectations evolve, it’s crucial to deliver a speedy and consistent service every time.

Click and collect may account for 11% of UK online sales by 2025

Various new shipping options have emerged to help consumers access their products faster in recent years. One of the most popular options in the UK is the “click and collect” service, which allows consumers to collect their item from a store. Study shows around 11% of UK online retail sales will be fulfilled using this method by 2025.


74.4% of online retailers have some form of free shipping

To meet with demands for cost-effective shipping, the majority of online retailers are now offering free shipping options on some orders. According to one report, around 74.4% of retailers have some form of free shipping on orders. However, only 20.4% of companies offer unconditional free shipping. Another 45.1% of companies offer free shipping only after a customer’s cart value has reached a certain threshold.

Interestingly, around 14.5% of companies also offer free shipping when a customer meets with a specific pre-requisite, such as being part of a loyalty program.

(Digital Commerce)

Only 16% of sites implement shipping and store pickup options perfectly

A Baymard report looking at how many websites are delivering excellent store pickup and delivery experiences revealed some interesting results. Around 16% of the companies assessed in total were considered to be “perfect” in their shipping scores.

The Baymard Institute found there were four main reasons why companies were struggling with the shipping experience. First, 36% of sites were simply suggesting delivery speed, rather than giving a clear delivery date. Secondly, 96% of sites didn’t show a cut off time for when customers would get next-day delivery, and 63% of sites didn’t offer local store pickup.

Further, 75% of sites made it too difficult to compare shipping options to store pickup solutions.


There are now 2.14 billion online shoppers worldwide

According to reports, the number of digital buyers is increasing rapidly, placing more pressure on online stores. As of 2021, there were 2.14 billion online shoppers worldwide, making up around 27.6% of the global population. This indicates 1 in 4 of all people shop online.


Online order volume increased by 59% in 2022

SC Logistics found that 59% of ecommerce businesses said their online order volume increased in 2022. Only 27% said they saw a decrease in their number of online orders. Notably, the rise in order volume seems to be most significant across mid-sized and larger businesses, with two thirds of them reporting an increase.

Furthermore, fluctuating order volumes were also considered one of the most significant challenges faced by 21% of retailers in 2021. Additionally, 51% of ecommerce companies said the cost involved in managing Fulfilment had increased for them in the last year.

(SC Logistics)

53% of companies say automation reduces their Fulfilment costs

Companies in the online sphere are investing in numerous strategies to reduce Fulfilment costs and improve customer satisfaction. Around 53% of companies who said their Fulfilment costs had decreased between 2021 and 2022 said automation was the reason for their cost savings, and 37% said it helped them to hire fewer employees.

To assist with managing labor shortages, around 57% of companies also say they’re outsourcing some or all of their Fulfilment processes to third parties. Outsourcing Fulfilment is a practice most common among smaller and mid-sized businesses, with 61% and 59% respectively saying they use this method.

(SC Logistics)

Addressing the Evolving Fulfilment Landscape

In order to succeed in today’s competitive ecommerce landscape, companies need to offer a lot more than just great prices and products. Today’s consumers are demanding more convenient, streamlined, and fast experiences when shopping online. This means every business needs to work hard to ensure they’re managing the right Fulfilment processes.

As these ecommerce Fulfilment statistics show, the need for fast and cost-effective shipping will likely only increase in the years ahead. Now is the time for business leaders to ensure they have the right delivery solutions in place.

Source link