Shoppers to Put Retailers ‘to the Test’ This Holiday: Convey Survey

Amazon Prime will especially shape consumer shopping behavior this holiday, and retailers “should assume” that their customers will bear “expectations” set by Amazon’s “speed and efficiency,” a Convey by project44 survey found. The company sells “predictive” supply chain data to Walmart, Ingram Micro and other large logistics organizations, and tracks last-mile e-commerce shipment “exception trends.” It said consumers’ top concerns this holiday are out-of-stock items, shipping delays, high prices of goods and higher shipping costs than last year.

Convey canvassed 1,300 U.S. adults in September on their anticipated holiday shopping activity, finding 79% said their household has an Amazon Prime membership, it said. The highest proportion (93%) of Prime memberships are in homes exceeding $200,000 in annual income, it said. And 87% said they’re likely to buy from Amazon this holiday season, and big-box retailers like Best Buy, Target and Walmart rank “a distant second” at 67%.

Even amid well-publicized warnings of shipping disruptions and higher costs, 88% of respondents rated free shipping and on-time delivery as most important to the overall holiday experience when shopping for goods online, the survey found. The three most important delivery service options to consumers are free two-day shipping (71%), free shipping on returns (63%) and the ability to track packages en route (62%).

“Transparency is key” for retailers and their customers this holiday quarter, the survey found. Most shoppers (56%) are more likely to complete a purchase if an estimated delivery data appears in their online carts before checkout. It found 67% said they won’t shop with a brand again after a poor delivery experience.

Consumers who plan to start holiday shopping online the same time this year as last said they will be unforgiving about shipping delays, the survey found. Forty-seven percent said they're “somewhat unlikely” to give retail deliveries more time, while a fifth said they're “not at all likely.” If a delivery is going to miss its estimated delivery date, 48% want an email notification, 28% prefer a text message and 21% want to be informed through a “tracking page.”

More than six in 10 respondents plan to shop both in-store and online this holiday, with e-commerce the clear preference of most of those consumers, the survey found. Twenty-one percent plan to shop exclusively online, including curbside pickup. Only 4% plan to shop in-store exclusively, while 15% plan a mix of in-store and online shopping, with in-store the preference of most.

“Shoppers are going to put retailers to the test this year, despite awareness of the challenges sellers face,” said Convey. “Free, fast, on-time delivery is the expectation, thanks to Amazon’s dominant influence on retail. This year’s survey reveals that transparency on pricing, estimated delivery dates, and shipment delays is of utmost importance for sellers to remain competitive.”