5 Operations Experience Issues E-Commerce Brands Must Fix
parcelLab's inaugural US Operations Experience Study revealed significant opportunities for retailers to enhance their shipping and delivery practices. Here are the five most critical issues brands must address.
1. Provide More Delivery Choices
Currently, only 4% of e-commerce sites display their carrier information or allow customers to select preferred carriers -- a standard practice in Europe. However, progress is evident: 62% of US retailers now offer curbside pickup alongside traditional delivery, and 18% provide next-day delivery options.
2. Communication Around the Post-Purchase Experience is Minimal
Most retailers underutilize post-purchase touchpoints. The research found that 56% send only three to four emails before delivery, despite having at least five potential communication opportunities. Even more concerning, 25% send just two emails or fewer, often missing shipping updates, delivery confirmations, and returns communications.
3. Package Tracking is Lacking
Only 27% of retailers host branded tracking pages on their websites. The remaining 73% outsource tracking to third-party carrier sites, forfeiting opportunities to strengthen customer loyalty and engagement through owned experiences.
4. Free Delivery is Essentially a Myth
Truly free shipping is rare. The study found only four retailers offering genuine free delivery. Additionally, 52% require minimum order values (averaging $35), and 30% charge for shipping entirely (averaging $4.25 per order).
5. Return Processes Are Extremely Difficult for Customers
Returns present significant friction points. 43% of retailers charge for returns, with over half of those charging more than $10. Further, 56% require over six days for full processing and refunds, while 64% fail to notify customers about receipt or expected refund timelines.
Key Takeaway
A positive Operations Experience drives customer loyalty and sales -- this is the critical focus area for US retailers moving forward.
The research emphasizes that each of these issues represents both a gap and an opportunity. Retailers who address these operational experience shortcomings will gain significant competitive advantages in customer retention and lifetime value.
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