deliver it the right way or forget your succes right away - ecommerce summit

Deliver it the right wayor forget your success right away

Claude Rombaux

Sales & Marketing Director

Belgium & Luxemburg

The delivery, an important link in your chain

You want to start a webshop?

You already have your concept, your brand, your staff?

But did you integrate the delivery in your business plan?

e-Commerce Summit | 26 February 20142

Manufacturer

Payments online

Storage

…

But what about packaging, delivery, return process, …

The delivery, an important link in your chain


The logistics aspects are much more than just « a » delivery and must integrate:

• Packaging and security issues

• Labeling

• Insurance

• Delivery method(s)

• International shipping

• Track & trace

• Return process

What customers want…


Market analysis of COMEOS


For the third time in a row, Comeos published their annual report on Belgian e-commerce, focusing on the main trends and future developments, among 1.062 Belgians (representative on region, gender and age).

Comeos – created in 1978, and formerly known as FEDIS - representsthe Belgian Trade and services Sectors.

The members are active in 18 sectors, represent 11,2 of the GNP of Belgium and employ 400.000 people.

e-Shopper‘s Delivery Preference


Up to 74% for a door to door delivery

When should it be possible to have product delivered?

Meeting | Datum7

How much are you willing to pay for the delivery?

Meeting | Datum8

e-Shopper‘s Delivery Preference

1 What do customers expect?

• Home delivery

• Even if ShopDelivery has become a more mature solution

• Fast delivery

• Except for action sales where they have to wait for closing of the sales on e-shop

• Cheap delivery

• Unexpected costs (such as delivery costs) represent the main reason (56%) for

abandoned shopping carts

• Flexible delivery

• They want to have full control of the delivery options (location, date, type, …)

• Trackable delivery

• Parcel movements must be transparant through reliable and detailled track & trace


The Flexible Delivery

1 What are the different possibilities?

• Standard home delivery

• Alternative address

• Alternative date for delivery

• Delivery in a ParcelShop or pick-up point

• Deposit service (delivery without signature)


The Flexible Delivery

Why are « multiple choices » at order not always enough?

• Because all orders are not always ready to be shipped the same day for next day delivery

• Because buyers also have a lot of (sometimes unplanned) activities

• Buyers also sometimes forget delivery agreements

�Therefore e-shoppers want to manage the delivery themselves in real time

�By having the choice of the original delivery option

�By having the possibility to change the delivery even after the order

�By having the same possibility even later in the process

… all this without losing 24 hours in delivery!


Tips & Tricks


The right price

Did you calculate the « all-in price »?

• Is the pick-up included?

• Is the proof of delivery (signature) included?

• Is the insurance included? (*)

• Is the track & Trace included?

• Is there any surcharge (Cash On Delivery, Oversized, non conveyable, outside area or island, …)

�Make sure you have a clear and complete view and knowledge of yoursupplier’s tariff

� Integrate those parameters in your online price calculator

� Don’t forget to add VAT…


The right coverage

What happens if your parcel gets lost or damaged?

• Most carriers responsibilities are limited to CMR conditions for road transport

• CMR limits liability to approx 10€/kg

• Some carriers offer a free insurance up to 750€ per parcel

• But check conditions and eventual deductible

�Make sure you have the goods covered either by the (free or additionnal) insurance of the carrier, or by your own insurance company

� Define clear rules for your transfer of liability with the carrier

� Inform your customers (consignees) about their liability when signing for receipt

because this may affect admissibility of your claim


The right service(s)

Do you offer the right delivery options to your customers?

• Even if customers prefer home delivery, you need to offer also alternative solutions such as delivery into a ParcelShop for example

• You can choose for one single carrier offering all the alternative solutions or consider working with different carriers

�Make sure you have a complete and flexible offer towards your potentialcustomers

� but keep it user friendly (= simple and clear) for your e-shoppers

� don’t forget to consider the IT-integration costs if you choose to work with

different carriers (preparation & labeling, track & trace, return processes, …)

� give your customer the choice to modify their shipping instructions/method even

after the order


The right content

Are you sure the goods you want to ship are not prohibited for road or air transportation?

• Restrictions and regulations may be different from road to air transport

• They may also vary from one carrier to the other one

�Make sure your goods comply to the different rules

� Dimensions: parcel distribution often applies maximum weight and maximum

dimensions, maximum girth, maximum length, maximum volume, …

� Dangerous goods: some items are considered as dangerous goods and

depending of road or air transport these rules may be different

�Ex. refill for lighters, paint sprays, lithium batteries, …

� Some items may be prohibitted by the carrier such as juwelery or glass for

example (bottles!)

� Consider always legal and sanitary restrictions and regulations (cigarets,

alcohol, perishables, …)


The right destination(s)

Internet offers an international potential. Are you prepared?

• Is your website ready for international payments, shipping, languages, …?

• Do you know how to ship to other destinations within Europe or abroad?

�Make sure you know how, where and what to ship

� Have the right paperwork for non EU destinations

�Agree about formalities with carrier (do you need export documents for your

accounting?)

� Define the right Incoterm (who pays what) for each parcel/order

� Explain clearly on your website what your customer will have to pay for shipping,

but also for clearance at destination

� Make sure your carrier has the customs license


The right packaging

Too often shippers try to save money on packaging

• The shape of your parcel is the image of you shop towards your customers

• Beside the shape and image, damaged goods only result in customer frustrations, extra administrative and operational workload, and extra costs

�Make sure you prepare your goods for the complete shipping process

� Choose the right carton box, not only the size, but also strong and multiple

layers

� Make sure the item is not just loose inside the box but fixed and protected

� Don’t forget the box might be used for eventual return process a second time,

so it must be strong enough!


The right software and labels

Everything starts with the order

• When confirming the order, the customer defines the shipping solution

• You need all detailed info to prepare the right label

�Make sure you provide the final routing label and full data

� When goods must be re-labeled, quality will suffer

� data transfer with carrier will allow full track & trace, but also communication

with YOUR customer for smooth delivery, Make the T&T visible on your website

� Provide correct email address of consignee to your carrier

�Align the email notifications between your system and the one of your carrier to

avoid overloading your customer with emails

� Make sure your carrier does not use or sell these email addresses for

adverstising


The right process

Shipping is one thing, returning another!

• E-commerce generates much higher return ratio

• Return process must be easy, reliable and usually free of cost for the customer

�Make sure you integrate the return process even before shipping

� Return process must be explained on website

� Foresee a return label with the original packaging to avoid wild returns

� Offer the possibility to your customers to ship it back via a ParcelShop close to

his work- or home address

� Make sure YOU and YOUR CUSTOMER can manage and follow-up the

returned item via full and reliable track & trace system in real time


Conclusions


The right product on the right website at the right price with the right payment method

go the wrong direction if you do not have the right delivery solution(s)