Facing up to more demanding and global online shoppers

Nearly half (47 per cent) of online shoppers globally reported frustration with everything from shipping, to returns, to lost products and miscalculated duties and taxes during the 2016 holiday shopping season, according to the 2017 Pitney Bowes Global Ecommerce Study. “As consumers become more experienced with online shopping, they’re shifting more of their holiday spend online and expecting better and better service from retailers,” said Lila Snyder, executive vice-president and president, global e-commerce and presort services, Pitney Bowes. Snyder added, “With even more purchases expected to be online this year, retailers need to double down on the elements of the consumer experience that matter most — delivery, returns, tracking and world-class customer care.” The study recommends three strategies for online retailers. They are:

Take a cue from marketplaces: a) Learn to love shipping. Low cost, fast, flexible and accurate shipping is key to attract and retain customers; b) Implement information management solutions that aggregate a single view of the customer; c) Expand your product assortment, offer timely promotions, and simplify checkout.

Go cross-border, but don’t rely on brand alone: a) Localised marketing is essential because marketing channel preferences among consumers vary significantly by country; b) Operational prowess separates the winners from the losers, particularly in neighbouring countries. The expectation is low cost and high visibility of delivery, localised customer care, and minimised duties and taxes.

Have the courage to go where the customers are: When retailers implement cross-border strategies, they tend to start where the transition is easiest — neighbouring countries with similar regulatory environments where people speak the same language. Pitney Bowes’ analysis has found that the prioritisation of near-border markets has come at the expense of underserving consumers in countries more apt to shop cross-border.