Part Three - What Next for the Accelerating World of Ecommerce?

The UK has the most advanced e-commerce market in all of Europe. This means that staying ahead of the game has never been more imperative; consumers expect a high level of service when buying products online. Consequently, retail businesses must work hard to deliver, literally… 

Flexibility in Delivery and Returns  

Perhaps one of the most significant changes in e-commerce is the customer's decision-making process. For example, when a customer buys a piece of clothing online, they are unlikely to be sure of the fit and size; even the style can be hard to judge through a screen. In a physical store, much of this is negated. We have seen an increase in people purchasing more items online with the intention of returning much of the order – 1 in 3 fashion purchases are now returned. This change in purchasing behaviour has led to the need to modify and simplify returns processes. Ensuring that customers can return items quickly and efficiently isn't an easy task, nor is it cheap, with an estimated £7bn cost associated with returns.  

As online orders increase dramatically, so have delivery and return demands, 'with parcel deliveries rising 50 per cent to 4.2bn in the financial year ending last March, according to industry regulator Ofcom'. As a result, services such as, parcel lockers – like those provided by InPost – have become all the more necessary and popular. So much so that 'the number of potential customers within 5 minutes of a locker has risen from 2 million to almost 7 million in the last year'. Such infrastructures have been vital in easing the strain on even the biggest delivery giants whilst still living up to consumer expectations of a stress-free process. 

For those of us with an eye on innovation much further in the distance, enhanced touch screens are being discussed as an option to help customers feel objects. That would surely help reduce some of the return’s volumes. Watch this space, with some early versions of this expected in the next five years!  

Options for Payment  

The way that customers pay for online purchases is constantly changing. Before now, most retailers offered a single payment option. A consumer would input their card details, and the money would be left in their account accordingly. However, there has been a movement here to provide customers with more options. Using credit-based systems, such as Klarna, means customers can buy products now and settle the balance at a time that suits them. Alternatively, a customer might pay with PayPal, Apple Pay, Google, etc.  

Giving customers options is key – the more manageable their journey, the more likely they will purchase. A word of caution, though; as the saying goes, more money (or, in this case, payment options), more problems. Therefore, your customer service team must be armed with knowledge of the different options available to customers to support incoming payment queries effectively. An informed customer service team is an effective one.  

Customized E-Commerce Experiences  

The significant difference between in-store shopping experiences and the world of e-commerce is the presence of human interaction. So much of the online experience is automated; customers click a button, and the ordered products get delivered to their door. Retailers cannot upsell products or encourage a purchase, as is possible in-store. Digital tools have come a long way regarding the support they can offer customers online, but what can we do to make that situation more interactive and brand-immersive?  

We are seeing more 'customized' shopping experiences appearing in the market. Take the fashion world with Stitch Fix and Thread – where the expertise replicates having a personal shopper. These services show that creating more interactive offerings doesn't necessarily mean increasing your headcount and costs. We can certainly expect to see more of this as time goes on.  

Keeping up with Demand  

But, what of situations where a higher headcount might be required? Creating more interactive and immersive digital experiences will depend on your resources. As you add more strings to your bow, you aren't replacing the old ones. Your customers will still want to call to see why that parcel is a day late, or to ask why they haven't received a refund yet, or to complain that their order has not met expectations. This realistically leaves two options: 

Firstly, you can grow your team – utilizing that loyal, experienced in-store team that has sadly seen its store close, giving them a chance to reallocate those skills. This has already been successfully implemented throughout the lockdown for organizations such as jewelers. It is still possible to deliver high-quality customer service in such ways. 

Alternatively, you could choose to work with an outsourcing partner. They can deliver your standard customer service expectations and go beyond this by providing the aforementioned personalized services. Outsourcers are flexible enough to grow with you, taking on recruitment pains during peak times. They can also offer you multiple locations for cost-saving purposes and, in most cases, provide access to multilingual, skilled staff – at least, that's the case here at The DDC Group. More importantly, an outsourcing partner should be strategic, supporting your aims as an innovative, ever-evolving retailer.  

Indeed, there is a lot to think about; next time, we will dive even deeper into the topic of delivery and returns.