By Keith Regan E-Commerce Times
12/12/01 7:20 PM PT
E-tailers are less likely to offer free shipping this year, with just two companies in
Accenture's latest study making the offer, compared to 14 who did so a year ago.
High Performance, Low Cost Solutions for eCommerce Surviving and thriving in today's competitive online retailing world is not getting easier. This white paper provides insight on technology that scales eCommerce applications to support more advanced end-user functionality and a rapidly growing user base.
U.S. e-tailers have made major strides in improving
the online ordering and delivery process, though Web
shopping may be taking longer than in past years because
consumers have more choices, according to the annual
e-Fulfillment Report released Wednesday by consulting
firm Accenture (NYSE: ACN).
In its third annual eFulfillment study, Accenture found
that 98 percent of all online merchants confirm orders
with e-mail notices, up from 81 percent in 2000.
Meanwhile, nearly twice as many e-tail sites now have the
ability to confirm that a product listed for sale is in stock.
This year, 72 percent of sites had that ability, compared to
38 percent a year ago.
Decisions, Decisions
U.S. e-tailers appear to be on the right track, according
to Accenture. Last year, the firm found that
67 percent of orders placed
online were not properly filled and 12 percent failed to
arrive before Christmas.
While orders are taking just as long to arrive this year -- an average of seven days --
e-tailers have widened their shipping windows, making it less likely goods will arrive
late, the firm said.
"E-tailers are padding their arrival estimates, like they
did last year, making promises of 10 to 14 days for
goods to arrive," said Bob Mann, associate partner at
Accenture. "They are generally doing better than that."
Time Passages
Despite the improvements, it is actually taking longer
to place orders at many Web sites, in part because
e-tailers have expanded their product offerings. Typical
ordering time in the study increased from 10 minutes
last year to 13 this year.
That is still faster than most store visits, according to Mann.
"Online buying still has the edge on convenience," Mann said.
Overall, he added, pure-play e-tail sites "continue to be a bit faster than traditional
retailers' or catalogers', reflecting apparently better Web-savvy designs."
Shipping News
Accenture found that e-tailers this year are less likely to offer free shipping. Two
companies involved in the new study have made the offer, compared to 14 a year ago.
Still, shipping costs remained about steady, at about 15
percent of total product costs.
Meanwhile, European e-tailers are suffering many
of the same growing pains experienced in the U.S. in 1999.
Across the Pond
Only 32 percent of European online merchants provide real-time in-stock information to
Web customers, around the same level seen among U.S. sites in 1999.
Accenture noted that European e-commerce faces
additional hurdles, including multiple languages and
lingering trade barriers. In some cases, Web sites
crashed when European consumers tried to have good
shipped across national borders.
The news is not all bad for European online consumers, however. Shopping
online is faster there, with the average order taking 11 minutes. Additionally,
shipping charges are 20 percent less on average than in the U.S.
"The Internet is a great place to shop, and it is going to get better
in Europe very quickly if companies take the U.S. lessons to heart,"
said Jon Bumstead a UK-based Accenture partner.
Return to Sender
To conduct its study, Accenture ordered
US$30,000 worth of goods from 85 U.S. and 81
European Web sites over a one-week period.
The New York City-based firm plans to donate
$20,000 worth of the items, which included books,
toys and clothing, to a children's charity and return the
remaining goods to judge how well sites handle that
aspect of customer service.