Ecommerce Goliaths Make Room for Small Brands to Thrive with Personalized, Lasting Experiences, Kenco Survey Finds
CHATTANOOGA, Tennessee – (COMMERCIAL THREAD) – Kenco Logistics, a leading third-party logistics service provider (3PL) in North America, today released its 2021 e-commerce consumer survey, which identifies key consumer trends and preferences in e-commerce buying habits, sustainability, delivery, etc.
Conducted in May, the survey analyzed responses from nearly 1,300 US consumers representing a wide variety of ages, incomes and geographies. Results reveal a consumer base that values convenience and sustainability and will reward brands that can deliver a mix of both with their business. While 81% of consumers still shop most often online from Amazon and big box retailers for their low prices and convenience, today’s ecommerce consumers struggle to align their principles with their principles. purchases, creating new market opportunities.
The growing adoption of e-commerce is here to stay
The pandemic has proven its profound impact on consumers’ purchasing habits, with relentless online order volumes continuing to challenge logistics networks at all levels. And this impact shows no signs of fading.
- 41% of consumers shop online once a week
Almost 20% of consumers shop online several times a week
- 84% of consumers expect their online purchases to increase or stay the same after the pandemic.
“The pandemic has driven record volumes of consumers to online shopping channels for the products and services they need during the pandemic, ”said Dan Coll, vice president, eCommerce Fulfillment at Kenco. “This commitment to e-commerce paves the way for brands to capitalize on digital sales growth and with data showing that most consumers expect to maintain and increase these new levels after the pandemic, e-commerce adoption. is here to stay. ”
Amazon and big box retailers take lion’s share of e-commerce, but create consumer guilt
The undeniably growing preference for e-commerce only confirms the continued dominance of Amazon and big box stores in the market, with 81% of consumers choosing to shop most often online from these goliath retailers. When asked to rank their most frequent reasons for shopping online from Amazon or big box retailers, price, user-friendly experiences, and availability came out on top.
- 39% ranked the award as their number one reason
- 24% ranked ease of use (website, mobile app, etc.) as their number one reason
- 21% ranked product availability as their number one reason
However, shopping online from Amazon or big box retailers creates widespread unease among consumers about the ethics of buying from a large chain store.
- 36% of consumers associate shopping online with Amazon or big box retailers with a feeling of guilt.
Among consumers who feel guilty:
- 74% feel like they are taking away from small businesses
- 68% feel they are contributing to unsustainable practices involved in packaging, manufacturing and labor
- 50% feel that they do not support more socially responsible companies (ethical, belonging to minorities, concerned about the environment, etc.)
Data reveals that these feelings of guilt associated with shopping at Amazon or big box retailers increase as the age of consumers decreases, showing that trends towards environmentally and / or socially responsible purchases will only continue. to gain momentum.
Consumers will expect personalized and eco-friendly experiences
This consumer guilt seems to lead to leaner customer experience expectations, especially for smaller, more unique organizations, according to the survey results. While almost half (49%) consumers prefer two-day delivery, most are willing to wait longer for deliveries for more personalized and lasting products and experiences.
- 74% of consumers are very likely or likely to wait longer for deliveries for more personalized products and experiences from smaller, more unique brands
- 69% of consumers are very likely or likely to forgo faster delivery options for more sustainable options such as delayed deliveries by consolidating orders or combining orders with others on the same route.
“Expectations on Amazon and big box retailers are relaxed for smaller, unique and sustainable brands that align more closely with consumer values, ”said David Hauptman, Chief Commercial Officer of Kenco. “While consumers demand low prices and quick delivery times from national and global chains, they are more forgiving when they know their money is contributing to sustainable or socially responsible practices. Small business owners can worry less about providing instant gratification if they offer quality, unique, and long-lasting products.
While sustainability is a priority for consumers, it is often not achieved commercially. Brands that can fuse these seemingly bizarre consumer needs – ethics and convenience – have the opportunity to conquer the market. Companies do this by streamlining their supply chains at every point of contact to reduce costs and delivery times wherever they can, freeing up capital that can be redirected towards sustainable business practices.
To view the survey infographic, visit info.kencogroup.com/2021-ecommerce-consumer-survey.
Kenco provides integrated logistics solutions that include distribution and fulfillment, comprehensive transportation management, stevedoring services, property management and information technology, all designed for operational excellence. Owned by a woman and financially strong, Kenco has built lasting relationships with its clients for 70 years. Kenco focuses on common sense solutions that generate uncommon value. Also connect with Kenco on Twitter, Facebook, LinkedIn and the Kenco blog.