High value eCommerce and the role of logistics
High ticket online purchases becoming more frequent and more expensive. As a result, consumer demands of delivery companies are also changing, says Nick Cullen, managing director, DX Express.
Retailers are putting their trust in logistics firms to prioritise the safe and secure delivery of their most expensive purchases – and it’s the responsibility of the delivery company to meet that demand.
First and foremost, logistics firms need to make sure they have the necessary resources to handle expensive goods. This means storage solutions that take into account the potential fragility of the items. It is ultimately down to the logistics firm to prove that they have the means to protect high-value items; otherwise they might discourage sellers from using them. They also need to ensure that they can provide the kind of premium quality service that buyers of high value goods expect. This starts with ensuring that all employees are fully vetted and follow strict processes.
Firms also need to clearly explain the various delivery options they offer in plain and simple English. This communication needs to be an open dialogue where retailers feel comfortable asking their logistics firm about the different specifications of each option. Knowledge cannot be assumed on the part of the seller and industry jargon should be avoided where possible.
Consultation is also important. It is not enough for delivery firms to simply offer several delivery options. Instead they should be actively advising their clients on why certain delivery methods may be more suited to a specific buyer and their purchase. That way, retailers can update their websites appropriately with the latest delivery options and associated costs to reflect deliveries of different size, shape, weight and price.
Partnership with retailers
Essentially, logistics firms should strive to build a collaborative partnership with retailers. This is key to providing the best possible after-sales service and plays an important role in protecting a brand’s reputation, especially with high value goods. This could involve frequent updates on the progress of the delivery, as well as easy access to customer support. With this approach, it’s possible to turn ‘the final mile’ into a positive experience for the customer.
This is all part of a complete online shopping experience that goes beyond the point of sale. With high ticket goods in particular, the user journey and overall customer care is vital. Unsurprisingly, buyers of high value goods tend to have a strong emotional attachment to their purchase, and therefore want to know that their purchase will be delivered safely.
Logistics firms need to consider taking extra care at the point of delivery. This means providing extra security layers to avoid unnecessary risks at the final hurdle. Delivery firms should ensure customers' goods can only arrive at locations that have been specifically earmarked as safe for delivery.
It’s clear that when delivering items worth £500 or more, a different mindset is required than when delivering a commodity such as a t-shirt. Even the very best supply chain processes can be let down if there is one weak link – and if that weak link is the parcel carrier, it can be damaging to the retailer’s reputation, especially with high value goods.
The opportunity
Logistics businesses need to match the high value of the goods being delivered with a high value service. There is an opportunity here for logistics firms to invest in the latest technologies and incorporate them into their service. The best delivery firms will rise to this challenge to ensure they are always ahead of the pack. This could involve using sophisticated handheld devices to register and store electronic signatures, or providing photographic evidence of delivery.
Advances in these and other services mean that the modern customers now expect a greater level of control over their purchases. Most customers value additional services such as a choice of delivery slots and delivery tracking capabilities. Unsurprisingly, though, this comes at a cost. However, logistics companies should feel confident in passing these costs onto clients, provided that the cost increase is clearly explained.
The truth is that most increases in cost are negligible compared to the value that most buyers place on a guaranteed safe delivery. So, although the costs may be higher, the benefits are clear to see. Take the use of photography for proof of delivery as an example. This service has proved popular among our e-commerce customers in particular, and has helped to alleviate claims of non-receipt.
Are we all on board?
The popularity of buying high-value items online is only set to increase, so logistics firms must ensure they are prepared to cater for all types of deliveries, including expensive ones. This means working closely with retailers to provide a comprehensive set of delivery options and a detailed and well-connected consumer journey from start to finish. If this can be achieved and managed well, logistics firms will be able to improve their quality of service, expand their client base and increase revenue.