The Real Cost Of Slow Delivery Options

On-demand delivery platform Stuart recently released research conducted on shoppers in the U.K. that shows just how costly it can be for local online retailers when a customer adds items to their online shopping cart but then dumps them due to slow delivery options.

The study found that 88 percent of U.K. shoppers want better delivery services from local retailers and that only 4 percent of U.K. retailers offer same-day delivery options.

In the U.K., 72 percent of online shoppers would spend more at local retailers if same-day delivery options were provided. Stuart estimates this amounts to about £4.9 billion ($6.08 billion) in total annual revenue lost.

The survey also found that 62 percent of U.K. customers are willing to pay a premium for same-day delivery, which could add up to as much as an additional £94 million ($116 million) in online revenue.

Stuart’s research also notes that faster delivery options would aid in speeding up the return process. Nearly a third of U.K. consumers purchase more than one item and subsequently return it.

U.K. consumers will return £59 billion ($73.3 billion) worth of items each year, and an additional £3.2 billion ($4 billion) of unused merchandise remains unreturned. They were also found to take an average of 4.2 days to begin returning items — and merchants are missing out on goods in the stockroom as a result.

The size of the U.S. makes same-day deliveries for major retailers somewhat unrealistic. But Stuart’s study still begs the question: Imagine how much extra local retailers here in the States would save each year if they upped their delivery speed — and two-day shipping for major retailers, for that matter.