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Shipping and receiving

The rise of online shopping has fundamentally changed how we live, offering unprecedented convenience and a vast range of products. In our latest article, we explore the complexities of online order delivery, revealing user expectations and experiences through surveys, interviews and research. Join us as we unpack the changing dynamics of sending and receiving in e-commerce.

2023-12-19
7 min read

Online Shopping & Delivery — Part 3

Research into the Hungarian market

In recent years, everyone has experienced how online shopping has changed our lives. The exponential growth in online purchases and widespread use of online platforms have created new opportunities for businesses, while giving consumers convenient, fast access to a wide range of products and services.

Based on our research into online order delivery, this article series presents users’ expectations and experiences of payment, delivery and communication throughout the online ordering process.

This article was preceded by a non-representative online questionnaire, in-depth interviews and desk research. Our questionnaire survey included participants aged between 16 and 75.

Online Shopping & Delivery Series

#1 — How do we pay online?

We introduce customers’ preferred payment methods. We explore the criteria they use to make decisions and their attitudes towards increasingly popular virtual card payments.

#2 — The Economic Effects of COVID-19

We discuss the economic impact on online shopping. We examine whether changes in shopping habits during the Covid period have continued, and outline how rising inflation may influence users’ decisions about payment and delivery methods.

#3 — Shipping and receiving

In this article, we look at customer feedback on different delivery methods and preferences. We also discuss how product categories influence customers’ choice of delivery method, as well as what they think about environmentally friendly delivery options.

#4 - Messages during shipping

From the moment an order is placed, the status of ordered products and collection-related communication are crucial. In this article, we focus on the messages and notifications customers consider important.

#5 - Issues with packages

In this article, we discuss customers’ perceptions of the safety of online shopping, the items they return, and their concerns and expectations when shopping on international websites.

Online shoppers’ delivery preferences and the factors behind their decisions

Online shopping is an integral part of modern life. Ordering products and services online is convenient, but delivery is essential. The choice of delivery method and provider is therefore crucial to a positive customer experience. Online shoppers have preferences for particular delivery methods and providers, and we examine the criteria consumers use to make their decisions.

Collection preferences

Our research confirms that home delivery is clearly the most popular delivery method among online shoppers, with most respondents selecting it as their first choice.

Delivery preferences vary significantly by age. Customers aged 15–25 tend to prefer parcel lockers, while older age groups favour home delivery. Younger people are more inclined to receive their orders as quickly as possible, even if it requires more effort. As people get older, convenience becomes a more important factor. In-store collection is the least popular option.

Product categories affect delivery preferences. Prepared meals, household appliances, furniture and groceries are commonly delivered to customers’ homes (e.g. Kifli.hu, Tesco). Parcel lockers are often preferred for books, stationery, beauty products, cosmetics and toys. In-store collection is a popular choice for items such as pharmaceuticals, medical devices, hardware, building materials, and car and motorbike parts. This option allows customers to collect their purchases in person rather than having them delivered.

Home delivery is the most popular option

Home delivery is often the only option in small towns and villages, where parcel points or parcel lockers are frequently located far from customers’ homes. It is also the easiest way to deliver larger or heavier packages directly to the customer’s door. For example, when purchasing items such as a refrigerator or a treadmill, the back seat or boot of a family car may no longer be enough. Customers have reported that delivery time slots are too broad, which can be frustrating when a courier arrives at an inconvenient time and the customer cannot receive the order. In these situations, customers may ask someone else, such as a family member, colleague or neighbour, to accept the delivery on their behalf.

1. chart: Product categories most often ordered with home delivery
Chart 1: Product categories most often ordered with home delivery

Young people often prefer collecting parcels from parcel lockers

Parcel lockers are popular with urban residents, particularly younger people. Customers pay for the product in advance, so they do not have to deal with payment later.

Respondents prefer using parcel lockers for small, low-value packages. Urban residents appreciate that lockers are easily accessible at any time of day, allowing them to avoid adapting their schedules to the courier's arrival. Parcel lockers are also a good option for customers who prefer discreet delivery, as there is no need to meet anyone when collecting a parcel.

2. chart: The most frequently ordered product categories in parcel vending machines
Chart 2: Product categories most frequently ordered to parcel lockers

Free in-store collection

As mentioned, some product categories are preferred for in-person collection. In these cases, customers expect the product to be prepared and available for free collection in-store. Products often collected in person include fragile items, small but expensive electronics, hardware and medical devices. Customers also consider how urgently they need the product. If the store is easy to reach, they may choose to collect their purchase in-store to get it sooner rather than wait several days for home delivery – especially when buying birthday gifts.

3. chart: Product categories most often ordered by personal pickup in store
Chart 3: Product categories most often ordered for in-store collection

How do customers choose their collection method?

Respondents considered price, speed and convenience when choosing a collection method. The data shows that the cost of collection is the most important factor across all age groups. However, the second and third most important considerations vary by age.

4. chart: Main considerations when choosing a delivery method
Chart 4: Main considerations when choosing a delivery method

Service providers

Our respondents frequently choose home delivery by GLS and MPL, as well as Foxpost parcel lockers. Foxpost parcel lockers are particularly popular among younger age groups, while older groups prefer GLS home delivery. The choice of service provider is typically influenced by the delivery fee. If there is no significant difference in providers' prices, the decision is usually based on convenience. Using the same courier consistently for home deliveries can build a relationship of trust. This may lead customers to automatically choose the same collection option for future purchases.

5. chart: Most frequently chosen delivery methods and service providers
Chart 5: Most frequently chosen delivery methods and service providers

The importance of delivery time in customer satisfaction

Delivery times vary depending on the product or service. Based on customer feedback, prepared meals should be delivered within an hour, while medicines, medical devices and online groceries should arrive on the same day. Clothing and electronic products should be delivered within 2–3 days, and furniture within 1–2 weeks. Customers are dissatisfied when no delivery window is specified or when they are given a full-day window for the courier's arrival. An ideal delivery window is 2–3 hours. For online shopping, a one-hour time slot is the most appealing, but a 2–3-hour window is also acceptable.

Customers expect delivery within the promised timeframe. If there is a delay, they expect to be informed of the additional waiting time. When it comes to food orders, customers are less tolerant and want to know the expected delivery time.

During seasonal shopping periods, such as Christmas, customers may be more patient with delivery delays, but they still expect to be informed in advance. Striking a balance between delivery times and customer expectations is crucial to creating a sustainable and satisfying online shopping experience.

6. chart: Expectations related to online shopping before major holidays
Chart 6: Expectations around online shopping before major holidays

Environmental awareness in online shopping

In recent years, sustainability has become increasingly important in both business and society. In response to global environmental challenges and climate change, more and more companies and organisations are recognising the need to manage their operations responsibly. Sustainability has become a key consideration for delivery companies, as their activities contribute to greenhouse gas emissions and other environmental impacts.

Respondents hold differing views on environmental awareness. They primarily expect delivery companies to make changes towards greater sustainability. They believe that optimising delivery routes, consolidating orders and delivering parcels at a later time can reduce carbon emissions.

51% of respondents consider environmental awareness important when receiving online orders, but are unwilling to pay extra for it.

7. chart: The importance of environmental awareness when ordering online
Chart 7: The importance of environmental awareness when ordering online

Companies that use environmentally friendly packaging materials contribute to sustainability. Some businesses already collect shopping bags from previous deliveries, which customers see as a good example. Alternatives to plastic bags, such as biodegradable, recyclable or reusable bags, are already available. Users believe that these small changes can also contribute to sustainability and waste reduction.

Next post

The Economic Effects of COVID-19

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