In e-commerce, a delayed delivery can mean a lost customer. In fact, more than 20% of shoppers say they won’t buy from the same store again after a late delivery, and 17% actively discourage others from shopping there. Yet, year after year, the Consumer Goods and Services Ombud (CGSO) cites delivery problems among the most common complaints from South African consumers.
Calculating how often deliveries are made on time and without error is an important indicator of how an e-commerce business is doing.
Metrics such as your on-time delivery rate and your damage-free delivery rate should be analysed constantly, as we know the direct impact that delivery has on customer satisfaction and retention.
For small and medium-sized e-commerce businesses in particular, delivery can be a defining factor in the customer experience. Customers don’t differentiate between your business and your logistics partner.
If a delivery arrives late, damaged, or missing items, they will hold your brand accountable. That’s why delivery must be treated as a core component of your value proposition, not an afterthought.
Here are several ways that e-commerce businesses can improve their delivery performance:
- Use urban micro-warehousing or fulfilment hubs
Last-mile delivery – the final leg of a parcel’s journey – is often the most expensive and unpredictable stage of the process. Using micro-warehouses or fulfilment hubs in major urban areas can significantly reduce delivery times. It’s about creating proximity to your customers and improving delivery density, so your driver isn’t covering unnecessary kilometres.
- Set realistic delivery expectations
Overpromising and underdelivering is one of the biggest mistakes an online retailer can make. If you know certain products take longer to ship or come from a different location, make that clear at checkout. Customers value honesty and transparency. In most cases, they’ll wait longer for delivery if they’ve been given a realistic time frame upfront.
- Choose a trusted delivery partner
Your delivery-based metrics will be heavily dependent on your logistics provider and the accuracy of their delivery forecasting.
The reality is that not all logistics providers offer the same level of service, technology, or coverage. Consider working with a partner that has both local and international reach, robust tracking capabilities, and a proven record of reliability.
Your delivery partner should act as an extension of your brand. When they get it right, it enhances your customer’s overall experience and builds trust.
As South Africa’s e-commerce sector continues to expand – with thousands of new online stores entering the market every year – the pressure to deliver efficiently and seamlessly will only intensify.
Competition is fierce right now, and logistics is going to be a key differentiator.
The good news is that e-commerce businesses have access to innovative solutions. Through tools that offer speed, reliability and guaranteed delivery times, businesses can turn delivery from a pain point into a powerful advantage.
Nelson Teixeira, Managing Director of Operations for Sub-Saharan Africa at FedEx
