Dive Brief:
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Half of shoppers who’ve had a problem with a retailer don’t plan to shop at that retailer on Black Friday or Cyber Monday, and say nothing can change their minds, according to a survey of 1,000 shoppers from supply chain and retail solutions company JDA.
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Another half of those surveyed have developed an unforgiving attitude regarding home delivery, and a third say that they insist that online ordering be convenient and streamlined. The same survey found that 60% of shoppers opting for in-store pickup of online orders did so to avoid shipping fees, but half experienced a problem with such services.
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More than 60% (62%) of online shoppers say that paying for and packaging returns is their biggest frustration, and more than 50% say it’s “very important” that returns are easy. Door-busters remain a big draw to shoppers on Black Friday and Cyber Monday, the research found.
Dive Insight:
Consumers have retailers in a tight spot this holiday season, carrying grudges against those that have disappointed them throughout the year to the point of avoiding them on Black Friday and/or Cyber Monday. Those long memories show that smooth omnichannel efforts are key throughout the year, says JDA SVP Wayne Usie.
Free shipping and returns and even in-store pickup are emerging as expectations that can be costly to retailers. E-commerce and omnichannel retailers have lured shoppers with shipping deals that have now become an expectation. A clear majority (66%) of consumers in a Harris Poll of 2,241 American adults said shipping costs are their “biggest online shopping pet peeve”; some 81% said free shipping would make them more likely to shop online, and 70% said free returns would be an enticement.
But to be sure, shipping costs are being paid for, by somebody. All of that adds up to the need for retailers to be prepared with their omnichannel logistics, both to please their customers and to keep their own costs in check.
“The biggest challenge for retailers today is finding the balance between keeping customers content while maintaining profitability to meet their needs in an increasingly omni-channel world,” Usie said in a statement. “It’s no longer sustainable for businesses to sacrifice profit margins in an effort to deliver customer satisfaction and meet demands. Instead, businesses need to take on a more holistic view of their logistics and fulfillment strategy to make better informed decisions that will not only provide a consistent omnichannel experience to customers, but more importantly, turn a profit.”