Descartes’ Annual Ecommerce Study Shows Slightly Improved Home Delivery Performance as 67% of Consumers Still Face Delivery Problems

Rhea-AI Summary

Descartes Systems Group (Nasdaq: DSGX) released its second annual consumer sentiment study on ecommerce home delivery, surveying over 8,000 consumers across Europe and North America. Key findings indicate a 6% improvement in delivery performance from the previous year, yet 67% of consumers still faced delivery failures, leading 68% to take negative actions against retailers or delivery companies. The study highlights that delivery timeliness and security are paramount, with low-cost delivery preferred over speed. The insights serve to inform logistics providers on improving customer experience and operational efficiency amidst rising consumer expectations.

Positive

• 6% improvement in delivery performance compared to the previous study.
• Insights from over 8,000 consumers can help retailers improve service.

Negative

• 67% of consumers experienced delivery failures in three months.
• 68% of consumers acted negatively towards retailers due to delivery issues.

ATLANTA and LONDON, March 20, 2023 (GLOBE NEWSWIRE) -- Descartes Systems Group (Nasdaq: DSGX) (TSX:DSG), the global leader in uniting logistics-intensive businesses in commerce, released the results of its second annual consumer sentiment study of ecommerce home delivery. The study of over 8,000 consumers across ten European and North American countries provides retailers and logistics organizations with critical insights into consumer purchase and delivery preferences and concerns.

“This past year’s growth slowdown in ecommerce and home delivery has resulted in a 6% improvement in delivery performance versus the 2022 study; however, 67% of the consumers surveyed still experienced a delivery failure in the three-month evaluation period,” said Chris Jones, EVP, Industry and Services at Descartes. “What’s more, 68% of those affected by delivery problems took some form of action that translated into negative consequences for the retailer or delivery company (see Figure 1), indicating that the pandemic grace period is over and consumers are becoming intolerant of poor delivery performance.”

Figure 1: Consumer actions in the face of delivery problems

^{Source: Descartes & SAPIO Research}

Additional key findings include:

• Top three delivery problems are all related to timeliness;
• Security is the most important element of the home delivery process; and
• Preference for low-cost delivery is twice as important as delivery speed.
  

The annual study analyzes consumer ecommerce buying behavior. It investigates the causes of increases or decreases in ecommerce purchases, the kinds of goods purchased, the frequency of purchases, and which purchases are being delivered. In addition, it provides insight into customer delivery personas, services, charges and performance. Most importantly, it analyzes the overall importance that consumers place on delivery performance and the impact of delivery failures on future purchases while also providing demographic-based analysis of results. To learn more, read the full study Dear Consumer: How Do You Feel About Home Delivery Now?

Descartes’ ecommerce logistics solutions help retailers and logistics services providers deliver a superior customer experience. The home delivery solution covers a wide range of critical capabilities including delivery appointment booking, route planning, mobile applications and customer communications. These products and services engage the customer at the point of purchase through order fulfillment and the successful completion of the delivery, provide opportunities to upsell value-added delivery services and keep customers up-to-date with the status of their delivery. The warehouse management and integrated parcel shipping solutions help small-to-midsize retailers scale their ecommerce business improving fulfillment reliability, speed and productivity as well as use the right carrier and service to minimize shipping costs.

Learn more about Descartes’ Home Delivery Solutions and its Ecommerce Shipping & Fulfillment Solutions.

About Descartes

Descartes (Nasdaq:DSGX) (TSX:DSG) is the global leader in providing on-demand, software-as-a-service solutions focused on improving the productivity, security and sustainability of logistics-intensive businesses. Customers use our modular, software-as-a-service solutions to route, track and help improve the safety, performance and compliance of delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; access global trade data; file customs and security documents for imports and exports; and complete numerous other logistics processes by participating in the world's largest, collaborative multimodal logistics community. Our headquarters are in Waterloo, Ontario, Canada and we have offices and partners around the world. Learn more at www.descartes.com, and connect with us on LinkedIn and Twitter.

Global Media Contact
Cara Strohack                                                                     
Tel: +1(800) 419-8495 ext. 202025                                 
cstrohack@descartes.com  

Cautionary Statement Regarding Forward-Looking Statements

This release contains forward-looking information within the meaning of applicable securities laws ("forward-looking statements") that relate to Descartes’ solution offerings and potential benefits derived therefrom; and other matters. Such forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements to differ materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the factors and assumptions discussed in the section entitled, "Certain Factors That May Affect Future Results" in documents filed with the Securities and Exchange Commission, the Ontario Securities Commission and other securities commissions across Canada including Descartes’ most recently filed management's discussion and analysis. If any such risks actually occur, they could materially adversely affect our business, financial condition or results of operations. In that case, the trading price of our common shares could decline, perhaps materially. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purposes of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. We do not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in our expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f4c8e801-21a8-4c1f-be6d-34876a6c6903

FAQ

What are the key findings of Descartes' 2023 consumer sentiment study on ecommerce home delivery?

The study indicates a 6% improvement in delivery performance but highlights that 67% of consumers experienced delivery failures.

How many consumers were surveyed in Descartes' ecommerce delivery study?

Over 8,000 consumers were surveyed across ten European and North American countries.

What percentage of consumers took negative actions after delivery failures according to Descartes' study?

68% of consumers affected by delivery problems took some form of negative action.

What delivery issues were highlighted in the Descartes Systems Group study?

The top delivery problems identified were all related to timeliness.