The EHI Retail Institute has called on online retailers to examine their processes and cost structures, revealing in a study that after long periods of growth for e-commerce, current forecasts are less rosy.
A new study, “Shipping and returns management in e-commerce 2023”, analyses shipping options and their costs in Europe’s DACH region in addition to strategies for avoiding returns. According to the research and consultancy firm, more than three quarters (78 percent) of online retailers in Germany, Austria, and Switzerland said delivery or shipping to customers is the decisive cost driver.
The average logistics costs per item vary greatly depending on the product range, rising to €5 for a third of online retailers, up to €25 for a further 41 percent and over €25 for eight percent, not counting returns, it said.
The shipping costs charged to customers are between €2 and €10 for the majority (85 percent) of the retailers surveyed while only 4 percent of the retailers examined in the DACH region do not charge shipping fees.
Delivery speed
To ensure that customers do not decide on another product while they are waiting for the goods, fast delivery times are very important for retailers. For three quarters (75 percent), the study found delivery speed to be a decisive criteria when choosing a shipping service provider. On average, 61 percent of deliveries deliver in one to two working days, 28 percent deliver within three to five working days and seven percent require 24 hours.
None of those surveyed needed more than five working days for the ordered items to be delivered, the EHI reported. In addition, it found that dealers sometimes charge extra for particularly fast delivery times including one company which said it could deliver within 10 minutes.
“The smooth flow of shipping and delivery and efficient processing of returns are among the core requirements of online retailers. Fast delivery times, specific delivery time windows and a clever cost strategy can be decisive factors in competition,” Marco Atzberger, member of the management board at the EHI Retail Institute said.
