Why retailers and logistic companies need to diversify carriers

In 2022, Evri was responsible for 53% of deliveries from online purchases during peak season in the UK. Evri’s performance has improved since its rebrand in March 2022 from Hermes. However, a quick sweep of the headlines still reveals disgruntlement with a number  of carriers in the UK. Three of the most well known carriers all faced criticism in a poll published by Money Saving Expert in January. Evri received more than 39,000 votes, with 62% rating it as ‘poor’. Yodel was also rated ‘poor’ by 39% of respondents and 22% gave this same verdict for UK Mail.

On-time delivery and clear communications are absolutely key to keeping customers happy and coming back to your business. Research from YouGov revealed that 48% of shoppers say a negative shipping or delivery experience affects their relationship with the retailer. In fact, 23% said that they are actually unwilling to order from a retailer again after a negative delivery experience. Couple these figures with the fact that Salesforce is predicting that one in three online holiday orders will come from repeat buyers this year, and you get a sense of how much is at stake. 

As Digital.gov states succinctly: “Trust can be built upon with good experiences and broken with bad ones.”

The impacts are both short and long term. In the short term, failed and lost deliveries upset customers, but also hit them financially. A quarter of businesses see 10% of their orders experience a first attempt failed delivery. Although it can be both the carrier and the customer that is at fault, the impact is the same – annoyance from the customer and a cost to the company. 

The average cost of a failed delivery is £11.60 in the UK. This is a huge cost to bear, especially for businesses whose orders average less than £80.

However, the long term impact is harder to quantify but equally as damaging. It is a loss of trust and high chance that the customers will go elsewhere. It’s even something that customers will describe as emotionally-driven. Our survey revealed that 53% of consumers view the post-purchase stage as the most emotional part of their shopping journey. If it goes wrong, they feel let down and they take it personally. 

By choosing to place the lion’s share of their business with one carrier, companies absolutely raise the chance of issues notably from potential service disruptions. Evri blamed “a unique set of challenges” for its performance last holiday season, including unprecedented volumes, Royal Mail strikes and labour shortages. This could have happened to any provider, but customers will potentially be less sympathetic this year after the chaos of 2022.

Using an array of carriers whom your company trusts – and have different potential specialisms, like regional knowledge or even better sustainability practices – mitigates against this. It also gives companies more leverage to negotiate competitive rates instead of handing one carrier a monopoly. And it drives carriers to innovate and perform, as they are competing against each other for your business.

It also offers flexibility; companies can predict peak delivery volume to a certain degree, but by having an array of carriers on hand means that if there is a sudden surge in demand, they can meet it. Similarly, if one carrier is suffering from shipping issues, they then have other options that they can deploy quickly and effectively.

Keeping track of your carriers’ performance will help companies decide where to use which carrier and how, while ensuring that performance is always peak. This includes monitoring pre- and post-delivery communications – the timeliness of deliveries and ease of returns. Brands often view returns as an annoyance, but they are expected by most customers. 

A recent study revealed that a staggering 92% of customers are influenced by brands’ return policies. Returns are, therefore, a chance for companies to differentiate themselves with a high quality post-purchase experience. The carrier is an essential cog in delivering this. They are also a chance to promote exchanges and store credit – to keep the customer engagement journey going – but if the process is unreliable or difficult, companies miss out.

As the holiday season approaches and customers start shopping, retailers and logistics companies should already have predictions and plans in place. However, if they are facing a potential deluge of orders with only one carrier on a contract, the likelihood of failed or lost deliveries is higher. With that comes customer dissatisfaction; and in this time of huge competition and economic uncertainty, that is something no company wants.