UPS Capital Survey Reveals How Shipping Shapes the Customer Experience

Discover how SMBs are handling their shipping experiences in the new SMB Shipping Pulse Check: How Shipping Experience is Driving CX report.
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The rapid growth of eCommerce is undeniable, with total U.S. eCommerce sales estimated to be $1,034.1 billion at the end of 2022, a 7.7% increase from 2021. Now more than ever, online shoppers are placing a greater emphasis on shipping and delivery and are more likely to purchase from retailers who offer consistent and customizable shipping experiences.

The SMB Shipping Pulse Check: How Shipping Experience is Driving CX report, commissioned by UPS Capital, uncovered insights into how small-and-medium businesses (SMBs) handle their shipping experiences, the challenges they face, and how personalized shipping options can help improve the overall customer experience (CX).

Shipping Can Make or Break the CX

A large portion of consumer decisions are influenced by the experience they have with shipping and delivery, as well as the negative reviews they see as a result from poor customer service. Key findings include:

  • 90% of shoppers surveyed say that the shipping experience accounts for at least half of their overall online shopping experience.
  • In the last year, 71% of online shoppers reported they have contacted customer service due to shipping and/or delivery issues regarding online orders (i.e., late, lost, damaged, or stolen packages).
  • Over half (51%) of consumers are likely to leave a negative review on a retailer’s website if they are unsatisfied with the resolution of a shipping or delivery issue, which is a concern as 91% of surveyed online shoppers state that negative reviews influence their purchasing decisions.

However, managing and resolving shipping issues can drain a company’s time and resources—negatively impacting the bottom line. Most (91%) SMB decision makers state that employees' time could be better spent focusing on other areas to grow and improve the business, rather than on shipping-related issues.

Because of this, SMBs are turning to features like advanced shipping analytics to address these challenges more effectively and efficiently.

The Power of Advanced Shipping Analytics

Predictive analytics can help by identifying potential risks ahead of time. Specifically, the SMB Shipping Pulse Check report found that SMBs are interested in the following advanced shipping data points:

  • 44% — Multi-carrier tracking
  • 41% — RFID monitoring of precise location in transit
  • 39% — Multi-carrier claims data
  • 39% — Signature required / Adult signature required
  • 37% — Shipment delays, including weather or disruption events 

When it comes to the CX, the majority of SMBs see a correlation between increasing shipment visibility and their business’ overall customer experience — with 71% reporting that providing customers access to advanced shipping analytics would improve their overall CX.  In fact, 84% of SMBs said they would be interested in paying for premium access to predictive analytics data to help prevent shipping issues.

The Opportunity of Differentiated Delivery

Eighty-seven percent of surveyed consumers report that they would be more likely to shop with an SMB if they could personalize their shipping experience, presenting SMBs an opportunity to stand out amongst competitors and win over customers.

Specifically, buyers indicate that they are interested in customized delivery options that provide more control over shipping, including:

  • 52% — Delivery speed
  • 51% — Delivery date 
  • 45% — Return options
  • 42% — Time of delivery 
  • 29% — Location of delivery
  • 22% — Required signature 
  • 22% — Sustainable shipping

While most SMBs see the value in providing online shoppers with more control and customization over their shipping experience, 24% report struggling with the logistics. SMBs should evaluate their current shipping capabilities and source partners who can support delivery date optionality and other customized delivery offerings.

Post-Purchase Peace of Mind

Ultimately, investing in the shipping experience can be key to delivering a better overall CX and safeguarding a business’ reputation. To further protect their bottom line and growing threats like porch piracy, SMBs should consider adding protection like InsureShield® shipping insurance from UPS Capital Insurance Agency, Inc. to their fulfillment processes to provide a seamless post-purchase experience and continue to build customer loyalty. 

For more data on marketplace trends and insight into how SMBs can master the shipping experience, get the full report.

Shipping insurance offered through UPS Capital Insurance Agency, Inc. You can find the insurance disclosure here.