Shipping and receiving
Online Shopping & Delivery — Part 3
Research of the Hungarian market
In recent years, everyone has experienced how the world of online shopping has changed our lives. The exponential growth of online purchases and the widespread use of online platforms have created new opportunities for businesses, while providing consumers with convenient and fast access to a wide range of products and services.
Based on our research into online order delivery, in this series of articles we will present users' expectations and experiences of online order payment, delivery and communication during the process.
A non-representative online questionnaire, in-depth interviews and desk research preceded this article. In our questionnaire survey, we interviewed participants between the ages of 16 and 75.
Online Shopping & Delivery Series
We introduce the preferred payment methods among customers. We explore the criteria they use to make decisions and their attitude towards the increasingly popular virtual card payments.
#2 — The Economic Effects of COVID-19
We discuss the economic impact on online shopping. We look at whether the change in shopping habits during the Covid period has continued, and we outline how the growing inflationary environment may influence users' decisions regarding payment and delivery methods.
#3 — Shipping and receiving
In this article, we take a look at customer feedback on different delivery methods and preferences. We also discuss how the choice of delivery method by product category influences customers, as well as what they think about environmentally friendly delivery methods.
From the moment of ordering, the status of the ordered products and communication related to pickup are crucial. In this article, we have focused on which messages and notifications are considered important by customers.
In this article, we discuss customers' perceptions of the safety of online shopping, what items they return, and their fears and expectations of shopping on international websites.
Online shoppers' shipping preferences and decision-making background
Online shopping is an integral part of modern life. Ordering products and services online is convenient, but delivery is essential. Therefore, the choice of shipping method and provider is crucial for a positive customer experience. Online shoppers have a preference for certain shipping methods and providers, and we will examine the criteria that consumers use to make their decisions.
Pickup preferences
Our research has confirmed that home delivery is clearly the most popular delivery method among online shoppers, with the majority of our respondents choosing this option as their first preference.
Delivery preferences vary significantly based on age. Customers aged 15-25 tend to prefer parcel machines, while older age groups prefer home delivery. The younger demographic is more inclined to obtain their orders as quickly as possible, even if it requires more effort. As age advances, convenience becomes a more significant factor. In-store pickup is the least popular option.
Product categories affect delivery preferences. Ready-made meals, household appliances, furniture, and groceries are commonly delivered to homes (e.g. Kifli.hu, Tesco). Parcel machines are often preferred for books, stationery, beauty products, cosmetics, and toys. In-store personal pickup is a popular choice for items like pharmaceuticals, medical devices, hardware, construction materials, and automotive and motorcycle parts. This option allows customers to collect their purchases in person, rather than having them delivered.
Home delivery is the most popular option
Home delivery is often the only option for small towns and villages, as parcel points or parcel machines are often located far from the customer's home. Delivering larger or heavier packages to the customer's doorstep is easiest with home delivery. For example, when purchasing items such as a refrigerator or a treadmill, relying on the back seat or trunk of a family car may no longer be sufficient. Customers have reported that delivery time windows are too broad, which can be frustrating when the courier arrives at an inconvenient time and the customer is unable to receive the order. In these situations, customers may ask someone else, such as a family member, colleague, or neighbor, to accept the delivery on their behalf.
1. chart: Product categories most often ordered with home delivery
Popular for young people is to collect their package from a parcel machine
Parcel machines are popular with urban residents, especially the younger generation. Customers prepay for the product to avoid dealing with it later.
Respondents prefer using parcel machines for small and low-value packages. Urban residents appreciate that the lockers are easily accessible at any time of the day, allowing them to avoid adjusting their schedule to the courier's arrival. Parcel lockers are a good option for customers who prefer discreet delivery. There is no need to meet anyone during pickup.
2. chart: The most frequently ordered product categories in parcel vending machines
Free pickup in-store
As mentioned, certain categories of products are preferred for in-person pickup. In these cases, customers expect the product to be already prepared in-store and available for free pickup. Certain products are preferred for in-person pickup, such as vulnerable items, small but expensive electronics, hardware, and medical devices. Customers also consider how urgently they need the product. If the store is easy to get to, customers may choose to pick up their purchase in-store for faster availability instead of waiting for home delivery, which could take several days, especially when buying birthday gifts.
3. chart: Product categories most often ordered by personal pickup in store
How do customers choose their pickup method?
Respondents considered price, speed, and convenience when choosing a pickup method. The data shows that the cost of pickup is the most crucial factor across all age groups. However, the second and third most important considerations vary depending on age.
4. chart: Main considerations when choosing a delivery method
Service Providers
Our respondents frequently choose home delivery by GLS and MPL, and parcel machines from Foxpost. Parcel machines from Foxpost are particularly popular among younger age groups, while older age groups prefer home delivery by GLS. The choice of service provider is typically influenced by the delivery fee. If there is no significant difference in service provider prices, the decision is usually based on convenience. Consistently using the same courier for home delivery can create a relationship of trust with the courier. This may result in the customer automatically choosing this pickup option for future purchases.
5. chart: Most frequently chosen delivery methods and service providers
The Importance of Delivery Time in Customer Satisfaction
Delivery times vary depending on the product or service. Based on customers feedback, the ready-made meals should be delivered within an hour, while medications, medical devices, and online groceries should be delivered on the same day. Clothing and electronic products should be delivered within 2-3 days, and furniture should be delivered within 1-2 weeks. Customers express dissatisfaction when there is no specified delivery window or when they receive a full-day window for the courier's arrival. An ideal delivery window is 2-3 hours. For online shopping, a 1-hour time window is most appealing, but a 2-3 hour window is also acceptable.
It is expected that the delivery takes place within the promised timeframe. If there is a delay, customers expect to receive information about the expected additional wait time. When it comes to food orders, customers are less tolerant and want to know the expected delivery time.
During seasonal shopping, like Christmas, customers may be more patient with delivery delays, but they still expect to be informed beforehand. It is crucial to strike a balance between delivery time and customer expectations to create a sustainable and satisfying online shopping experience.
6. chart: Expectations related to online shopping before major holidays
Environmental awareness in online shopping
In recent years, sustainability has gained increasing importance in both business and social sectors. As a response to global environmental challenges and climate change, more and more companies and organizations are realizing the need to manage their business activities responsibly. Sustainability has become a key factor among delivery companies, as these businesses contribute to greenhouse gas emissions and other environmental impacts, prompting increased attention to this issue.
Opinions among respondents vary regarding environmental awareness. They primarily expect changes toward sustainability from delivery companies. They believe that even optimizing delivery routes, consolidating orders, and delivering packages afterward can reduce carbon emissions.
51% of respondents consider environmental consciousness important during online order deliveries but are unwilling to pay extra for it.
7. chart: The importance of environmental awareness when ordering online
Companies that use environmentally friendly packaging materials contribute to sustainability. Some businesses are already taking back shopping bags used in previous deliveries, which customers consider a good example. Alternatives to plastic bags, such as biodegradable, recyclable, or reusable bags, are already available. Users believe that these small changes can also contribute to sustainability and waste reduction.