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NEWS DELIVERY OPTIONS DIVIDE CONSUMERS AND RETAILERS New research suggests a divide between Australian retailers Aand consumers when it comes to online shopping delivery preferences. Are you on the same page as your customers? “major disconnect” exists “Our research findings indicate a between the online shopping major divide between what retailers delivery options retailers believe is the desired delivery option, think are most popular, compared with what consumers really and consumer preferences, finds new want or find most effective,” Manhattan “Brick-and-mortar retail stores are currently experiencing a massive reduction in foot traffic and the number of people purchasing in store,” Mr Sibal said. “Retailers could be using this as an opportunity to pivot their in-store workforce to fulfil online orders, which would help to ease the pressure on warehouse operations and also add flexibility and cost-effectiveness by research from Manhattan Associates. The survey of 2000 Australian consumers and 100 large-end retailers found that the largest group of interviewed consumers (34 per cent) Associates Managing Director ANZ Raghav Sibal said. “This could mean that the delivery options retailers are offering today are not in line with consumer expectations, said they consider home delivery in two-plus working days to be the most useful option when online shopping, whereas six per cent of retailers said that this was the most popular delivery option with their customers. Almost 50 per cent of surveyed retailers said click and collect in two- plus working days was the most popular delivery option among customers, which contrasted with the figure of just six per cent of surveyed consumers agreeing that this was the most useful delivery option. A further 31 per cent of surveyed retailers stated that same-day home delivery was the most common delivery choice with customers, while only eight per cent of surveyed consumers consider this to be the most useful choice. In addition, 27 per cent of retailers reported charging for same-day or next day delivery. leading to unnecessary pressure on already stretched supply chains to deliver goods quicker than consumers actually expect or need them. “COVID-19 has created an incredibly difficult business environment for many Australian retailers, which means they can’t afford to be carrying any needless costs, such as paying extra to deliver products faster than consumers actually expect.” The research also found that distribution centres (DCs) are bearing almost the “full brunt” of the increase in online orders, with only nine per cent of surveyed retailers saying they fulfil online orders from retail store stock. Forty per cent of surveyed retailers deliver from a regional DC using their own delivery vehicle, 28 per cent deliver from a regional DC using a courier and 28 per cent direct from a supplier. fulfilling orders from the location closest to the delivery point.” When it comes to inventory visibility, surveyed retailers indicated there was “room for improvement”, with six per cent of respondents saying they have accurate inventory insight 100 per cent of the time. The biggest group of retailers (45 per cent) said they have visibility only 26-49 per cent of the time, while another 36 per cent said they have visibility 50-75 per cent of the time. “Retailers can’t sell what they can’t see, and this concerning lack of stock visibility, especially when the bulk of retail activity is currently online, is risking lost sales opportunities,” Mr Sibal said. “This pandemic is a reminder of just how important it is for retailers to have real-time insights into their supply chain operations and product inventory, so they can stay informed and react quickly to sudden changes in the market.” AUG, 2020 RETAIL WORLD 17