For retailers, outpacing the competition has never been more demanding. As McKinsey & Company noted, “the retail industry has seen as much disruption in the last 5 years as it did in the previous 25.”
Online shoppers have no shortage of options. And while reaching your customers has never been easier, convincing them to buy is a whole different story.
According to our 2023 E-commerce Delivery Compass, 44% of European customers abandon their order when they don’t see their preferred shipping option. This makes understanding your customers’ delivery preferences critical to increasing online sales and keeping your customers happy.
Out-of-home (OOH) delivery networks offer retailers a powerful way to meet these evolving customer demands by offering a convenient and eco-friendly delivery option at a more affordable price than traditional home delivery services.
This article will take you through our latest findings on consumer delivery preferences in 2024 and show you how to use these insights to your advantage:
- Key trends in e-commerce delivery across Europe
- European delivery preferences per country
- Low-cost shipping drives sales but delivery experience drives loyalty
- Demand for convenient and flexible delivery options
- Conscious consumers expect sustainable delivery methods
- Barriers to adopting out-of-home delivery
- How to use this data to grow your business
E-commerce trends continue to evolve in 2024
Despite rising costs and economic uncertainty, customers have not lost their appetite for the e-commerce industry. In fact, according to Marigold’s 2024 European Consumer Trends Index, 65% of customers are willing to pay more for brands they are loyal to and 78% are likely to engage with a personalized offer tailored to their interests.
But what does this mean for delivery? To capture a clear picture of e-commerce delivery preferences in 2024, Sendcloud conducted a 2024 Out-of-Home Delivery Survey of 4000 online shoppers across 4 key European markets: France, Germany, the United Kingdom, and the Netherlands.
Participants were asked about their preference of delivery method, location, and the importance of several factors affecting delivery. Their answers indicate a shift in what customers expect from online retailers when it comes to their delivery experience.
Key trends in e-commerce delivery
Our survey revealed customer delivery preferences have evolved in 2024 to reflect the demand for a more personalized and authentic shopping experience. Among changing consumer expectations, we observed the following trends:
- There’s no ‘one-size fits all’ for parcel delivery: Customers want to choose where and when they receive a package.
- Low-cost shipping drives sales, but delivery experience keeps customers: Cheap shipping converts buyers, but delivery experience determines whether they come back.
- Growing need for sustainable delivery options: Rise in conscious consumption is driving demand for more eco-friendly action from online retailers.
To satisfy these needs, customers are increasingly choosing out-of-home delivery (OOH) options as a convenient and sustainable alternative to home delivery. As carriers invest in expanding their out-of-home networks, it’s up to online retailers to seize the opportunity to satisfy customer expectations by offering these methods at checkout.
European delivery preferences per country
While home delivery remains the standard preference across all markets, we saw variations in delivery expectations per country (NL,UK, DE,FR). Overall, customers are placing an increasing importance on speed and flexibility in delivery, which has accelerated the adoption of various out-of-home delivery methods.
Customers are looking for fast and flexible delivery
Home delivery remains the most preferred shipping option for 62% of respondents. But the preference for home delivery has dropped 9% over the past year as the use of out-of-home shipping methods becomes more common.
Preference for OOH delivery methods differs per market
Across all markets, out-of-home delivery options like service points (23%), parcel lockers (20%) and pickup in retail stores (15%) are gaining traction as a preferred delivery location. But the most popular OOH delivery method differs per country:
Low-cost shipping converts customers but delivery experience makes them buy again
Market disruptions and economic uncertainty have changed the way people spend their money. Cost sensitivity is high in all markets, but customers still seek value in their experience over simply paying the lowest price.
When asked what delivery options convince them to buy a product from one online store over another, the cost of shipping was the deciding factor for 85% of respondents.
However, 77% of online shoppers say past delivery experience as an important factor in their decision to buy. This means that going with low-cost shippers may win you new buyers, but a low quality delivery service will cost you long-term customers.
Out-of-home delivery is an affordable shipping option
Instead of losing customers to poor delivery experiences by simply going with the cheapest shipper, online retailers can offer customers low-cost shipping without sacrificing quality by adopting out-of-home delivery options.
Not only do OOH options help retailers reduce their shipping costs and offer cheaper shipping options to customers, but they also reduce the rate of repeated and failed deliveries.
Our survey indicated that while 78% of shoppers would opt for home delivery if all costs are the same, 71% of customers would choose out-of-home delivery if it meant paying significantly less than home delivery.
Customers already think of out-of-home as a more affordable delivery method, with 75% expecting to pay less for out-of-home delivery than they do for home delivery. Among online shoppers, service points and parcel lockers are becoming established as a cost-effective alternative to home delivery while giving customers more control over their delivery experience.
Rising demand for convenient and flexible delivery options
Growing up in a hyper-connected, fast-paced world has given rise to an ‘anywhere, anytime’ mentality among digitally native shoppers – who expect seamless access to products and services across all devices, at any time, from any location. This mentality reflects the growing importance of convenience and flexibility in e-commerce, especially when it comes to receiving a package.
According to our survey, younger customers (ages 18-34) and serial shoppers (2 or more online purchases per week) are more likely to buy from online stores that offer flexible delivery options, such as the ability to adjust delivery time and location and choose a secondary delivery method if the first attempt is unsuccessful.
Out-of-home gives customers control over their delivery experience
There’s no ‘one-size-fits-all’ solution when it comes to parcel delivery. Doorstep delivery is no longer the holy grail of convenience. For shoppers who are back to working from the office or leading busy lives, waiting at home for a package can actually feel like a burden.
“Our customers appreciate the convenience of out-of-home delivery. With service points and lockers around the corner, they don’t need to be home to receive packages. It’s a solution that fits into their busy lives.” – Jordy Holthuijsen, CCO at XXL Nutrition
According to our survey, 55% of shoppers say the convenience of not waiting at home for a package is their top reason for choosing out-of-home delivery. This even outweighs cost, with only 51% of customers saying cheaper shipping is their top reason.
Customers want to have control over their experience, especially when it comes to where and when they receive their package. Our survey shows that 58% of customers want the flexibility to adjust the delivery location or time while their parcel is in transit and 67% would like to choose the day and time that suits them best.
Most of all, 82% of online shoppers would like to have a say in where a parcel is delivered if the first attempt doesn’t succeed. This growing demand for personalized delivery options underscores the need for solutions that fit seamlessly into customers’ schedules and put them in control.
24/7 parcel lockers give customers flexibility during delivery
Flexibility is key with 58% of customers saying they would choose out of home shipping methods over home delivery if they can pick up their package 24/7.
This demand for delivery convenience has spurred carriers to invest heavily in expanding their network of 24/7 parcel lockers, with the number of Automated Parcel Machines (APMs) in Europe increasing by 29% in 2023 alone.
By offering out-of-home delivery options at checkout, e-commerce retailers can meet evolving expectations by giving shoppers the flexibility to choose when and where they collect their parcels.
Customers expect retailers to offer sustainable delivery solutions
Sustainability is becoming a critical factor for the survival of many industries, and e-commerce is no exception. According to our 2023 E-commerce Delivery Compass 54% of customers expect online stores to offer eco-friendly delivery options at checkout and 37% are willing to pay more for sustainable alternatives.
This signals a shift in consumer mindset. While our survey results show that cost and convenience still drive purchase decisions, customers are becoming more mindful of their consumption and shopping habits.
According to our survey, 41% of customers believe that the increase in online shopping is a problem for the environment. This number increases to 56% for respondents under 35 years of age, pointing to the fact that this concern will only become more pressing as younger generations gain purchasing power.
Out-of-home is seen as a more sustainable shipping option
The need for more sustainable shipping options is clear, but is out-of-home delivery the answer? While the overall environmental impact of OOH is difficult to measure, our survey shows that 45% of customers see out-of-home delivery as a more environmentally friendly option than home delivery.
Furthermore, online shoppers are looking to the brands they buy from to take action. 53% of customers believe online retailers should offer out-of-home delivery as part of their effort to reduce CO2 emissions.
Increasing efficiency during last-mile delivery
While out-of-home options are not a sustainability silver bullet, consolidating deliveries to service points and parcel lockers does make the last-mile more efficient. Delivering 50 parcels to one central location rather than making individual stops reduces the amount of delivery vehicles on the road. This helps cut CO2 emissions (if the fleet is not electrified) and decrease traffic in city centers. Service points and parcel lockers serve as a reliable safe place for packages to await pickup, reducing the need for multiple delivery attempts.
Out-of-home delivery may reduce emissions on the carrier side, but what about the way customers pick up their packages? Our survey shows that 61% of customers go by car to collect their parcel from an OOH delivery point.
45% go by foot if the location is close enough meaning that the density of service points and parcel locker networks plays a role in the total impact of OOH delivery on the environment.
Barriers to adopting out-of-home delivery
While out-of-home delivery is gaining popularity, adoption among online shoppers faces two key barriers: network density and availability at checkout.
According to our survey, 59% of online shoppers would opt for delivery to a service point or parcel locker if these options were closer to home. And how close is close? On average most shoppers are only willing to travel a maximum distance of 1 kilometer.
Notably, serial shoppers (2 or more online purchases per week) show a strong preference for OOH options, with 44% favoring delivery to a service point and 46% opting for parcel lockers. Similarly, consumers that live in metropolitan areas also display increased interest, with 36% choosing service points and 40% selecting parcel lockers.
This need for proximity has driven carriers to invest in expanding their out-of-home delivery networks, helping increase the attractiveness of these options for customers.
Our data also uncovered that 48% of shoppers would use out-of-home more frequently if online stores offered it as an option at checkout. This suggests that many online retailers are missing an opportunity to entice customers with a flexible and affordable alternative to home delivery.
How to use this data to grow your e-commerce business
As e-commerce becomes increasingly competitive, meeting customer delivery expectations can help your business stand out among competitors. Improving the delivery experience increases customer satisfaction and encourages repeat purchases.
To use this data to their advantage, online retailers can take several actionable steps:
- Offer flexible delivery options: Since 55% of customers prefer out-of-home delivery to avoid waiting at home and 45% would like to choose their preferred date and time of delivery, retailers would benefit by offering these options to customers at checkout to provide a more convenient experience.
- Leverage cost-effective delivery methods: Cost of shipping is the most important factor to 85% of customers when deciding where to purchase a product online. Retailers who offer lower cost delivery methods such as out-of-home will attract more customers.
- Address sustainability concerns: As 45% of customers perceive out-of-home delivery as more eco-friendly, offering it can align with the growing demand for sustainable solutions, especially among younger shoppers.
Curious to learn more about OOH delivery methods? Read how out-of-home delivery is shaping the future of e-commerce.
