The pandemic changed how consumers shopped. They pivoted to eCommerce at record-breaking speeds and volumes. Retailers and brands seek to meet and exceed those expectations.
Key Takeaways
- Fifty-six percent of retailers agree that supply chain disruptions occur more frequently. Port lockdowns, volatile markets, reduced labor forces, natural disasters and international conflicts constrain supply chains
- Fifty-four percent of consumers increased their online shopping in 2021, compared to 49% in 2020. Ninety-two percent of retailers reported their online sales increased over the last 12 months. And 95% of retailers believe online sales will stay the same or increase over the next 12 months compared to 68% of retailers in 2020
- Seventy-six percent of consumers say free shipping is important, and 55% say the same about fast shipping. Sixty-six percent of retailers now offer next-day delivery in 2022 versus 48% in 2020
- Sixty-nine percent of consumers abandon shopping carts if shipping fees are too high. As inflation fuels higher transportation costs, retailers face a delivery dilemma: cover shipping costs and lose margin or pass costs on to customers and face abandoned orders
- To mitigate disruption, 69% of retailers implemented strategies to communicate delivery promises and shipping visibility to customers. Forty-four percent of retailers diversified fulfillment network locations in 2021, with 41% considering future network diversification
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Introduction: #
Consumers demand omnichannel delivery promises that balance cost and speed amid supply chain disruptions. Retailers struggle to strike the right balance.
The Covid-19 pandemic triggered massive supply and demand disruptions, from inventory delays to transportation and labor shortages.
The pandemic likewise changed how consumers shopped. They pivoted to eCommerce at record-breaking speeds and volumes. Now they want to buy and receive goods the way they want—whether that’s in-store or delivery.
In Q1 2022, the Flexe Institute conducted two surveys to understand how both consumers and retailers are changing:
The 2022 Flexe Omnichannel Consumer Survey: 500 consumers were asked about Covid-19’s impact on their shopping behaviors, as well as their expectations for eCommerce shopping and delivery.
The 2022 Flexe Retailer and Brand Business Survey: 249 retailers were surveyed about their eCommerce delivery options and priorities in the context of shifting consumer behavior and ongoing disruption.
