This year, around 39% of consumers blamed shipping providers as the reason for delivery failures, a whopping 53% lower than in 2022 when 83% of the surveyed shoppers blamed carriers for delivery mistakes according to an InsureShield Shipping Insurance report. This means that increasingly, consumers are shifting the blame from shippers to e-commerce merchants highlighting the importance of the fulfillment process in customer satisfaction and brand image. Even one such failure to deliver can have negative ripple effects on a brand’s reputation and customer loyalty. Hence, it is a vital strategy to invest in an effective, customer-centric fulfillment process to build brand reputation, customer loyalty, and long-term financial success.
A Brand Promise
All the money and effort put into marketing, branding, and product development is essentially validated or disproved by what happens after a customer presses the buy button and pays for the purchase. In essence, a customer’s journey culminates with the fulfillment process. For one, customers expect to receive exactly what they ordered. A mistake whether it’s the wrong item, size, color, or quantity shatters the perception of professionalism. The result is an immediate loss of trust and negative experience.
Fast delivery is also a non-negotiable expectation in the age of e-commerce. Hence, when a brand promises one day or same-day shipping and does not deliver, the customer gets frustrated and loses faith in the brand or merchant. Currently, about 51% of retailers offer same day delivery, an option that 85% of merchants claim helped improve their market presence and competitive edge according to ClickPost. In addition, the high customer service costs to resolve the problem is another factor to contend with. Hence, it is critical that brands have strategic and convenient fulfillment center locations resulting in faster transit times, delivery speed, customer satisfaction, and lower shipping expenses. Fulfillment locations also offer operational and market access advantages as well as protect business disruptions in cases of natural disasters and peak seasons.
Building Confidence: Communication, Packaging, and Presentation
Providing timely and clear updates after a purchase has been made creates a feeling of control and competence. Sellers acknowledge that the order has been received, shipped, or in transit while keeping the customer always informed of the fulfillment process. When delay or issue occurs, an anticipatory notification with description and fix is better than having the customer discover the problem themselves. Open communication builds trust whereas a breakdown in this process builds anger and resentment making the brand appear incompetent or indifferent.
If a product is damaged in transit due to careless packaging, the customer often blames the brand more than the carrier. Proper, protective packaging is, in such cases, paramount to product quality and consumer safety. Unboxing is also an important component of the fulfillment process. Personalized or added-value packaging can convert an obligation delivery into an experiential brand moment eliciting positive reviews and social sharing. Cheap or damaged packaging will devalue the product and the brand.
Returns Management
The fulfillment process does not end with the delivery of the product to the customer. If a product does not meet the expectations of the buyer, returns or exchanges are expected. This represents another chance for the brand to gain customer loyalty. A complicated, costly, or unclear returns process is a huge source of friction that diminishes loyalty. Customers anticipate an easy and convenient means for returns or exchanges. Slow refunds or delayed exchanges indicate poor or inefficient operations. Hence, an efficient return process is a second opportunity to prove reliability and competence. It creates a loyal, repeat customer as opposed to a difficult return process that breeds disgruntled former customers.
The Cost of a Fulfillment Disaster
A 2023 Convey Report says that 84% of shoppers will not shop again from an online store after just one poor delivery experience. This demonstrates that first impressions are critical in e-commerce because the fulfillment process is the first real interaction with a business’ brand. Therefore, one mistake and this can easily deter customers from ever returning making it critical to deliver a flawless experience from the beginning. Furthermore, negative delivery experiences are shared more often than positive ones which tarnish the reputation of a brand via reviews and social media. Additionally, a fulfillment disaster nullifies the investment made in customer acquisition cost (CAC) as the customer that was paid to acquire is lost due to logistics failure.
In short, the fulfillment process is the most visible and measurable representation of a brand’s integrity. It is the direct link between the promise made in marketing and the value that is ultimately delivered.
To read more content like this, explore The Brand Hopper
Subscribe to our newsletter
