Roadie Survey Finds 36.7% of Retailers Restrict Oversized Item Delivery Even as Demand Grows

Rhea-AI Summary

A Roadie survey reveals that 36.7% of retailers restrict oversized item delivery despite growing demand. Nearly half of respondents say oversized items make up over 20% of their sales. Key challenges include early cut-off times (47%) and managing multiple carriers (45%).

The study highlights the need for flexible delivery solutions for big and bulky items. Slow delivery speed (49%) is the top reason for cart abandonment, followed by lack of flexible delivery windows (45%) and inability to bring items into homes (44%).

Roadie introduced RoadieXD™, a nationwide cross-dock network enabling same-day delivery for large items. Companies outsourcing these services have seen a 62% increase in productivity. Benefits of partnering with oversized delivery providers include increased sales (63%), improved customer experience (57%), and enhanced distribution efficiency (46%).

Early cut-off times, complexity of managing multiple carriers and extra resources cited as top pain points

ATLANTA--(BUSINESS WIRE)-- A new report shows that 36.7% of retailers, e-tailers, and other businesses restrict the delivery of big and bulky items, even as the retail delivery market grows.¹ Nearly half of respondents say “oversized” describes more than 20% of what they sell, underscoring why high-quality, efficient last-mile delivery for those items is so crucial.

The research, published by Roadie, a UPS Company and a logistics management and same-day delivery platform, in partnership with studioID, explores the pain points, opportunities, and benefits of big and bulky delivery.

Nearly half (47%) of the surveyed businesses cited early cut-off times for oversized items as their primary logistical challenge, followed closely by the complexity of managing multiple carriers (45%), indicating a clear need for more flexible and responsive delivery solutions.

“As retail giants like Amazon continue to push the bar higher, customers expect the same high-quality delivery whether they order a tablet or a big-screen TV,” said Marc Gorlin, founder and CEO of Roadie. “Retailers that can offer faster, more reliable delivery for oversized items are not just solving a logistical problem – they’re expanding large-item revenue streams and building customer loyalty.”

The majority of respondents use a mix of delivery services to handle their big and bulky goods, whose early cutoffs and multi-day transit times can lead to cart abandonment. Slow delivery speed (49%) was the top reason for cart abandonment, followed closely by the lack of flexible delivery windows (45%), inability to have the item brought into the home (44%) and difficulty communicating with delivery providers.

In June, Roadie introduced RoadieXD™, a nationwide network of cross-docks, to enable retailers to offer same-day delivery for almost anything of any size. RoadieXD™ taps into the existing Roadie crowdsourced network of independent drivers to deliver up to 100 miles from each cross-dock, so companies can efficiently dispatch products from multiple locations, eliminate the need for extensive storage, accommodate later cut-off times and save on costs for traditionally expensive deliveries.

“Customers want delivery for big and bulky items just as much – if not more – than they want delivery for other items. Big item delivery is just hard. But offering delivery for oversized SKUs can make or break a sale,” added Gorlin. “We introduced RoadieXD™ to enable retailers to deliver a fast and satisfying same-day delivery experience straight from a distribution center. It also comes with minimal complexity for the retailer, and fewer opportunities for damages. Everybody wins.”

Companies that have outsourced pre-sorting, cross-docking and delivery of bulky goods have seen a 62% increase in productivity. They’re ahead of the curve – 56% of respondents anticipate such a benefit but have not yet partnered with a provider to bring it to fruition.

When working with an oversized delivery partner, respondents see a range of benefits, including:

• Increasing sales of oversized items (63%)
• Improving the oversized delivery experience for customers (57%)
• Increasing the efficiency of distribution and fulfillment centers (46%)
• Reducing damages and returns (39%)
• Reducing spend on oversized delivery (32%)

Read the full report on the survey’s findings.

¹ “Big & Bulky Done Better: Top challenges and how business are solving them” (https://www.roadie.com/resources/white-papers/22003.) Roadie, Aug. 21, 2024.

About Roadie

Roadie, a UPS Company, is a logistics management and crowdsourced delivery platform. Founded in 2014, Roadie offers businesses fast, flexible, and asset-light logistics solutions for last-mile delivery. Roadie enables local delivery to more than 97% of U.S. households by providing access to more than 200,000 independent drivers nationwide – allowing businesses to offer their customers delivery optionality for almost any industry, from airlines to artisans.

Roadie’s solutions include local same-day pickup and delivery, delivery from warehouses with in-house sortation, oversized delivery, sustainable delivery, returns, and more. For more information, visit www.roadie.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240821052336/en/

Gregory FCA

Anna Patrick, 212-398-9680

apatrick@gregoryfca.com

Source: Roadie

FAQ

What percentage of retailers restrict oversized item delivery according to the Roadie survey?

According to the Roadie survey, 36.7% of retailers restrict the delivery of big and bulky items, despite growing demand in the retail delivery market.

What are the main challenges retailers face with oversized item delivery?

The main challenges retailers face with oversized item delivery are early cut-off times (47%) and the complexity of managing multiple carriers (45%).

What is the primary reason for cart abandonment in oversized item purchases?

The primary reason for cart abandonment in oversized item purchases is slow delivery speed, cited by 49% of respondents in the Roadie survey.

What is RoadieXD and how does it address oversized item delivery issues?

RoadieXD is a nationwide network of cross-docks introduced by Roadie, a UPS Company. It enables retailers to offer same-day delivery for large items up to 100 miles from each cross-dock, addressing issues like late cut-off times and expensive deliveries.

What benefits do companies see when partnering with oversized delivery providers?

Companies partnering with oversized delivery providers see benefits such as increased sales of oversized items (63%), improved customer experience (57%), increased distribution efficiency (46%), reduced damages and returns (39%), and reduced spending on oversized delivery (32%).