Dive Brief:
- A whopping 77% of surveyed individuals expressed anxiety about potential issues with online shopping this holiday season, as per Intercom's Holiday Shopping Experience Report. The report surveyed 1,500 US consumers and 500 customer service representatives.
- Among the leading concerns for online shoppers were gifts arriving late (45%), items being out of stock (33%), and unexpected price increases (42%), according to the Intercom survey.
- An overwhelming majority (94%) of respondents expect businesses to alert them about delays without being asked, and a staggering 79% want notification about delays and out-of-stocks before they even checkout or purchase an item, the survey findings suggest.
Dive Insight:
Majority of Shoppers Anticipate Informing About Holiday Delays in Delivery Timelines
consumers' ongoing uncertainty about the arrival of their purchases has been prevalent throughout the COVID-19 pandemic.
In a Narvar report published in October 2020, 36% of respondents claimed their items were significantly delayed, yet only 19% were apprised of these delays by retailers.
Apart from delivery issues, 76% of customer service rep respondents in the Intercom survey indicated their concern about having enough staff to handle customer inquiries during the holiday season.
It's not just consumers who worry about supply chain disruptions affecting the holiday season. A First Insight and the Wharton School's Baker Retailing Center study, released in October, indicated that all retail executive respondents anticipated supply chain disruptions this year and persisting through 2022.
Other studies have highlighted that shoppers are worried about items running out of stock or being delivered late. A Coresight Research report, released in October, revealed that more than one-third of U.S. consumers were concerned about their purchases taking longer than expected. Furthermore, a Deloitte report from the same month indicated that 75% of shoppers were concerned about their desired items running out of stock.
"Retailers aim to satisfy their customers, but support teams face continuous strain during the holidays, with the global supply chain problems exacerbating the issue," Des Traynor, Intercom's co-founder and chief strategy officer, remarked in a statement.
General Trends in Holiday E-commerce
Delays and Out-of-Stock Items
- Delays: The holiday season is known for increased order volumes, which can cause shipping delays. This is exacerbated by capacity issues with shipping carriers, leading to frequent delivery issues and customer dissatisfaction.
- Out-of-Stock Items: A surge in demand during holidays can result in stockouts if retailers do not properly anticipate increased demand.
Price Increases
- Price increases during holiday seasons can be caused by supply chain disruptions, increased demand, and other factors. However, specific data on price concerns for 2021 and 2022 is unavailable in the provided search results.
Predictions for Future Holiday Seasons
- E-commerce Growth: The growth in e-commerce retailing during holidays continues, with a continued focus on safety and cautious purchasing.
- Return Rates: The holiday season typically experiences higher return rates, influenced by factors like gift-related purchases and sizing issues.
- Consumer Behavior: Consumers tend to be more cautious about online shopping, stressing the importance of improving service quality and customer satisfaction.
Consumer Concerns and Predictions
While specific data for 2021 and 2022 is lacking, the most common concerns revolve around reliability, availability, and affordability. Future holiday seasons will likely require retailers to address these concerns effectively to maintain customer trust and satisfaction.
Recommendations:
- Improving Logistics: Retailers should prioritize robust logistics and supply chain management to mitigate delays and stockouts.
- Price Transparency: Providing clear pricing information and potential discounts can help alleviate concerns about prices.
- Customer Communication: Regular updates about order status can help manage customer expectations and reduce frustration.
- As concerns about online shopping delays persist during the COVID-19 pandemic, it's crucial for businesses to alert customers about potential issues proactively, according to a survey by Intercom.
- The unreliability of online shopping, as evidenced by concerns about delayed deliveries, out-of-stock items, and unexpected price increases, has become a significant issue in the fashion industry, affecting retail sales over the holiday season.
- Breaking news: A study by the Wharton School's Baker Retailing Center and First Insight predicts that retail executives anticipate supply chain disruptions to persist not just this year, but through 2022 as well.
- In the realm of cybersecurity, consumer concerns about their personal data during online shopping transactions have amplified, making it essential for e-commerce businesses to prioritize data protection and privacy measures.
- The unfolding pandemic has led to a marked increase in remote work, which has resulted in supply chain disruptions in the manufacturing sector. This, in turn, has affected the availability of products in the retail industry.
- With the growing reliance on e-commerce, weather patterns could potentially impact business operations, especially during peak seasons like the holidays. Weather-related disruptions to shipping and delivery services could further strain consumer confidence and relations with retailers.
- Amid this shift towards online shopping, AI-powered tools like chatbots and personalized recommendation systems have become indispensable for improving customer service and driving sales, especially in the crowded retail landscape.
- Lawmakers are increasingly looking into policy measures to protect consumers, such as regulations on return policies, data privacy, and product quality during the holiday season and beyond.
- As the healthcare sector grapples with the ongoing pandemic, supply chain disruptions in the pharmaceutical industry have led to shortages of essential medical supplies, which could potentially impact the health of people who rely on these supplies.
- In the increasingly interconnected world of finance, markets, and technology, concerns over the cybersecurity of digital payments have escalated, prompting calls for greater cooperation and measures to secure transactions and protect consumer data.
