Page 10 - Dainfern Precinct_Issue 4_2022

BUSINESS COMPILED BY JOSH TRUTER, WITH EXTRACTS FROM A REPORT BY SARAH REPUCCI AND AMY SLIPOWITZ

IT'S THE DELIVERY

EXPERIENCE THAT COUNTS

or online shoppers, the time it The primary issue is that it costs “This is sometimes due to reasons
takes for their parcel to reach more to get a parcel to a customer outside of a brand’s control, but mostly
them – after pressing pay – faster. Throw in unknown issues it comes down to a lack of technology
Fdoes matter. Consumers have such as traffic, inaccurate mapping solutions that can track parcels,
become far less patient. During the and even weather, not to mention navigate speed-bumps in the road and
pandemic there was an exponential that the customer may not be at their keep customers informed as to the
rise in eCommerce, with everything address when the parcel arrives, and whereabouts of their parcels.”
from groceries, to alcohol, hair care the result is that the brands are sitting
products and medicine all being with a financial headache, where “Here’s an example: This customer
ordered online. they increasingly need to meet their recently placed an order for some
customers’ demands but come up cosmetics offered by a leading local
In fact, so entrenched has this new against a barrage of costly delays. online store. The order value was for
behaviour become, that online delivery a few hundred Rand and the customer
options are springing up all over the This is especially true given ‘last- understandably wanted her delivery as
place, with some of the most recent mile delivery’ – this is the final leg in soon as possible,” he explains.
grocery options being Pick n Pay’s the eCommerce process when the
ASAP, Checkers Sixty60 and Spar2U. parcel is delivered to the customer. It “Notwithstanding the additional fee
With so many online options now accounts for 53% of the total costs of incurred to get the products to the
available, it is doubtful consumers will shipping – but it’s a stage for which customer, the delivery time was
ever return to pre-COVID-19 shopping customers are largely unwilling to pay. advised to be two weeks – following
behaviour. This threatens profitability, especially which an email was sent extending
for smaller brands. the waiting period even longer! This
Yet while consumers spent around created great frustration for the
R5-billion online in South Africa in Antonio Bruni, CEO of smart logistics customer, and has soured the entire
2021, getting their products to them technology solution, Picup, says the experience.”
has become a delicate balancing act, last-mile leg of the delivery journey
one where speed has become a highly- is the most crucial but it’s hard for Bruni says while this extra-long wait
traded commodity while the cost that it brands to get it right and it’s often the period is highly unusual for any brand,
takes to deliver quickly has become a most inefficient in the entire supply let alone a leading online store, it goes
commercial conundrum for retailers. chain. to show that even the top guys still get
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DPL