Global supply systems were severely damaged by the widespread virus. Worldwide supply chain problems and shipping delays have been worsened by lockdowns, a lack of workers, and lengthy port turnaround times.
Retailers not only lose money by not being able to carry popular items, but their relationships with customers suffer as well. In response to one to three supply chain delays or interruptions, 58% of consumers said they would completely stop purchasing from a brand.
So how can a retailer deal with shipment delays? This article will outline the primary causes and offer some advice for reducing delivery delays.
What causes delays in shipping?
The National Retail Federation (NRF) reports that shipping delays and port congestion have had an effect on 97% of its members. Customers may become less trusting of retail brands as a result of these delays.
While delays are the last thing any store wants to experience, they occasionally cannot be avoided.
These are the top five reasons for delivery delays:
1. Lack of staff
Strict government mandates & shut borders contributed immensely to shipping delays in New Zealand. The number of job opportunities has reached an all-time high, while companies are facing the worst applicant shortfall in history.
Delays are unavoidable when tasks necessary for the supply chain cannot be performed by individuals.
2. Holidays & Vacations
Orders frequently increase for retailers around the holidays. Due to the growth in cargo volumes, couriers may become overburdened, especially if they lack an effective delivery network infrastructure. When customers desire their things to arrive on schedule the most, this might result in delivery delays.
3. Unusual weather
Weather is a factor in around 12% of all predicted truck delays in the world. At every stage of domestic and international commerce, severe weather may cause havoc, from icy road conditions to gale-force winds at sea.
4. Supply-chain problems
Over the next 12 months, shipping and manufacturing delays, as well as shipping prices, will reportedly continue to be the top supply-chain challenges, according to 39% of brands.
Global supply chain issues are the result of a pandemic, a war, and port delays. According to a McKinsey article, “During the COVID-19 epidemic, congested ports, overpriced freight capacity, and emergency shipments were commonplace. Since then, product line closures, transportation delays, and rising input costs have all been impacted by the situation in Ukraine.
Furthermore, 77 per cent of the ports around the globe are reporting excessively long turnaround times, according to Bloomberg.
In February 2022, a late ship was delayed by more than a week, as opposed to the typical late container ship in January 2019 being delayed by roughly four days. Only approximately 34% of cargo ships reached their destination without any delays in February 2022.
5. Incorrect shipment details
The courier service could lack the necessary information to deliver the product effectively when clients provide an erroneous or misspelt address or when the shop improperly records the customer’s purchase. This may result in package delivery delays, higher last-mile delivery expenses, or even worse, package non-delivery.
How are retailers impacted by shipment delays?
Today, a sale is deemed complete when the item is delivered to the client’s specified address, not when the consumer makes payment. Retailers are under pressure to fulfil customer expectations.
In a recent poll, 76% of participants responded that a bad delivery experience would greatly or somewhat influence their choice to place another order with that business.
Shipping delays affect retailers on a variety of levels in addition to impacting client purchase decisions:
Lost Revenue
Retail income can be severely impacted by shipping delays. An extended production shock may wipe away 30 to 50 per cent of a company’s earnings before interest, taxes, and depreciation, according to a recent McKinsey paper.
Inconvenient out-of-stock can cost retailers $1 trillion annually, and can also result in shipping delays.
Loss of brand trust
Concerningly, consumers hold shops liable for delayed delivery. Customers will surely be upset when their order doesn’t arrive when expected when they depend on businesses to deliver goods on time. This dissatisfaction may cause future delivery-related worries and even apprehension about placing repeat orders.
Additionally, 32% of buyers worldwide cite shipping issues or delays as some of the major inconveniences of online shopping:
Inventory problems
Retailers may find it challenging to accurately predict demand and arrange their inventory due to shipping delays. As a result, businesses risk overstocking and incurring expensive storage fees for their goods. Alternately, they can underestimate consumer needs, quickly run out of supply, and be unable to replenish their inventory in time to satisfy real customer demand.
How To Deal With Shipment Delays
Unexpected shipment delays will be one of the main problems for businesses in 2022. Even with efficient retail operations, shipping delays are difficult to totally prevent. Unfortunately, your consumer will see the delay as an issue even though it is not your fault, and you risk losing business.
Planning ahead and considering how you’ll face inescapable delivery delays are essential. Here are four suggestions for handling them:
1. Tracking shipments
Customers want to be aware of the arrival date of their orders. In a recent poll, 96% of participants said they would find GPS monitoring helpful when waiting for delivery. Even if it is delayed, shipment monitoring helps reassure customers that their product is on its way.
The reason for the delay may also be explained by shipment tracking.
Customers can determine if a delay is brought on by your company or the delivery carrier thanks to shipment tracking. The latter greatly erodes brand confidence compared to the first. Offering shipment tracking has the additional benefit of lowering the volume of support tickets from customers who want to know the status of their orders.
2. Regular communication
Customers want to know what to expect from deliveries upfront; buyers actively seek out retailers who display expected delivery timeframes.
After making a purchase, customers need regular updates on the progress of their shipment. Trust may be developed by keeping lines of communication open with clients.
3. Provide free delivery
Free delivery continues to have a big impact on what consumers buy. Offering clients free delivery is an opportunity to demonstrate your appreciation for them and dedication to offering excellent service.
Free shipping goes a long way in enhancing the customer experience and motivating customers to buy with you, even if orders are subject to shipment delays.
Another strategy to gain confidence is to provide free delivery, especially if your company has a global presence. Why? since international purchasers frequently worry about shipment. You may increase your customer base by relieving them of this concern.
4. Provide coupons and gift cards
Even when things don’t go as planned, giving consumers gift cards and discounts is another method to demonstrate your appreciation for their business.
Gift certificates and discounts might be provided to ease their anger about the delayed arrival. This tactic will cost you a little amount of money, but it’s considerably less expensive than having your consumers leave negative reviews or never do business with you again.
Bottom Line
Now that you’ve identified the primary reasons for shipment delays, you’re ready to use these measures to reduce their impact on your retail shop in 2022.
Whether you run a successful e-commerce store or manage a physical retail site, these strategies will help your company thrive in the face of current obstacles.
