Pitney Bowes Releases Order Experience Index to Help Direct-to-Consumer Retailers Navigate Post-Pandemic Market
March 21 2023 - 9:52AM
Business Wire
Data and insights on each step of an ecommerce
order, from checkout to returns
Pitney Bowes Inc. (NYSE: PBI), a global shipping and mailing
company that provides technology, logistics, and financial
services, has released its comprehensive 2022 Order Experience
Index, a compilation of data and insights on each step in the
customer journey of an ecommerce order, from checkout to returns.
The Index is a guide for direct-to-consumer (DTC) retailers as they
adapt to volatile macroeconomic factors and post-pandemic shifts in
consumer preferences.
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“While the word ‘unprecedented’ was appropriate for the market
changes we saw over the last couple of years, it would be a mistake
to label the year ahead as a ‘return’ to pre-pandemic behaviors,”
said Vijay Ramachandran, Vice President, Enablement and
Experience at Pitney Bowes Global Ecommerce. “Ecommerce brands
are coming to terms with a new market landscape where delivery
speed and free returns aren’t the same drivers they once were. As
we explore in our latest Order Experience Index—a benchmark sample
of insights we share with our clients everyday—consumers have new
expectations that may upend many of the pandemic-fueled investments
retailers made over the last few years.”
The Index contains takeaways from BOXpoll market surveys and
BOXscore shopping benchmarks to analyze the current state of
ecommerce and offer actionable insights for direct-to-consumer
retailers to use to develop new strategies for the evolving
landscape ahead. Key findings and trends include:
Consumers’ definition of convenience is shifting, driving new
considerations for retailers as they rethink checkout and delivery
experiences.
- Shipping doesn’t necessarily need to be “fast,” but rather,
predictable. The average consumer defines “fast” shipping as more
than three days—a number that has grown as the market has recovered
from pandemic restrictions.
- 62% of consumers say an accurate estimated delivery date is
more important than fast shipping.
- “Convenience” is the number one reason consumers cite for
picking online shopping over in-store, with 49% selecting
convenience over better prices, broader selection and getting their
items delivered faster.
Retailers must strike a balance between a memorable and
sustainable unboxing experience.
- More than 1 in 3 consumers (38%) are sustainability shoppers
(those who seek or buy products based on environmentally friendly
features). Nearly half (47-48%) of younger, more affluent
consumers, as well as parents and urbanites, fall into this
category.
- Consumers (54%) deem easy-to-reuse packaging the most helpful
way for retailers to make order packaging more sustainable.
Retailers must rethink returns strategies, considering a
convenient returns experience while keeping costs low.
- Retailers report that returns cost an average of 21% of order
value.
- Meanwhile, 70% are actively working on lowering returns
transportation and processing costs.
Though international inflation and a strong US dollar have
dampened demand for US exports, retailers have several
opportunities to win back cross-border customers with a positive
order experience.
- Cross-border cart abandonment rose year-over-year.
- Common reasons for cross-border cart abandonment in 2022
included not wanting to risk paying import duties at package
pick-up and taxes as well as a lack of localization.
The 2022 Order Experience Index can be downloaded here. Learning
from both consumer behaviors and larger shipping trends, retailers
can also anticipate the release of Pitney Bowes’ forthcoming 2022
Shipping Index, releasing on March 28, which takes a close look at
the state of the shipping industry in the US with a detailed
analysis of the vertical, including details of parcel volume,
carrier revenue, and market share.
Methodology
BOXpoll by Pitney Bowes, part of the BOXtools insights platform,
is a weekly survey on current events, culture and ecommerce
logistics. Morning Consult conducts weekly consumer polls on behalf
of Pitney Bowes among a national sample of more than 2,000 online
shoppers. Visit www.pitneybowes.com/boxpoll for the latest BOXpoll
findings.
BOXscore, a customer experience benchmarking platform by Pitney
Bowes, uses crowdsourced mystery shopping data to provide retailers
with insights into their ecommerce logistics.
About Pitney Bowes
Pitney Bowes (NYSE:PBI) is a global shipping and mailing company
that provides technology, logistics, and financial services to more
than 90 percent of the Fortune 500. Small business, retail,
enterprise, and government clients around the world rely on Pitney
Bowes to remove the complexity of sending mail and parcels. For the
latest news, corporate announcements and financial results visit
https://www.pitneybowes.com/us/newsroom.html. For additional
information visit Pitney Bowes at www.pitneybowes.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20230321005701/en/
Brett Cody, Pitney Bowes T: 203-218-1187 E:
Brett.Cody@pb.com
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