5 E-Commerce Statistics to Inform Your Business Strategy
Written by QuickBox Fulfillment & Published by QuickBox Fulfillment
As e-commerce continues to shape the global retail economy, consumer expectations and behaviors have made a dramatic shift. Key online retailers, such as Amazon, have largely contributed to this shift as consumers have grown accustomed to the Amazon model of speed in delivery, ease in return, and exceptional customer service.
Businesses engaged in e-commerce need to meet higher customer expectations than ever before to gain and retain customers. After price, shipping speed and cost are the most important factors in a consumer’s decision to make a purchase, making quality order fulfillment a priority to maintain a successful e-commerce experience.
Thankfully, e-commerce allows us to know more about consumers than ever before due to the robust consumer data that can be analyzed through online behaviors. By analyzing the statistics currently controlling the e-commerce market you can better understand your online consumers needs to improve your order fulfillment process.
A look at the most recent statistical insights can help you prioritize what’s most important when considering order fulfillment in your e-commerce retail experience.
- 38% of orders are abandoned if their estimated delivery exceeds a week. As estimated delivery time decreases, cart abandonment does as well with 16% of online consumers abandoning orders with 6-7 days delivery time, 15% abandoning orders with 4-5 day delivery time and just 8% abandoning orders with delivery estimated at 3 days or less. (Source)
Consumers have grown accustomed to the promise of fast, guaranteed shipping. Fast shipping is no longer seen as a deal, but an expectation. This model can be seen in the Amazon Prime membership, as well as Wal-Mart’s two-day online shipping guarantee. If the consumer’s demand for delivery cannot be met, they’ll find the product elsewhere.
The use of 3rd party logistics providers, or fulfillment centers, allows brands to strategically position their inventory in distribution centers closer to their customers so that products can be delivered quicker than when stored in one centralized location.
- Additionally, 69% of online shoppers are less likely to repeat shop with a retailer who does not deliver a product on the date promised. (Source)
Guarantee delivery, and make sure your order fulfillment operations are set-up to match your guarantee. By leveraging the infrastructure of a 3PL provider such as Quickbox Fulfillment you can guarantee delivery with less risk due to increased proximity to your customers.
- Global B2C e-commerce sales are projected to exceed $4.5 trillion in 2021, an almost 250% increase compared to the $1.3 trillion that was done in 2014. (Source)
The e-commerce retail market is on a fast growth curve, and will only continue to increase as technologies improve. The opportunity for growth as an e-commerce retailer is significant. As more consumers turn to e-commerce over brick-and-mortar retailers will continue to see increases in online sales, demanding more efficient processes to meet high order demands.
- The average cost to fulfill an order in-house is 70% of the average order value. (Source)
Labor costs, facility overhead, inefficient order splits, low ship velocity, and returns all contribute to the high cost of order fulfillment. To minimize costs, online sellers must effectively manage data and inventory to deliver customer’s products as efficiently as possible. Additionally, online sellers must be equipped to meet the demands of peak ordering seasons within their industry.
Optimized processes, enhanced automation, right-sizing for business ebb and flow, and controlled warehousing and logistics costs through 3PL partners can result in significant cost savings for your e-commerce order fulfillment.
- In 2017, Amazon sold more than 5 billion items through the Prime program. (Source)
This impressive number is isolated only to Prime member orders. In 2018, Amazon alone accounted for a staggering 40% of all U.S. online retail. (Source) With ordering numbers of this magnitude, one thing is clear, Amazon isn’t going anywhere anytime soon. This means you can continue to look to this e-commerce giant to set the standards for what customers expect in their online shopping experience.
As Your e-Commerce business continues to grow
As your e-commerce business continues to grow in the fast-paced market it’s crucial to align yourself with a partner that can help you effectively do what matters most, get your product in your consumer’s hands quickly with a seamless experience.
Contact us to learn more about how QuickBox Fulfillment can help you meet the needs of your customer while minimizing order fulfillment costs.