Table of Contents
Executive Summary
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- Top takeaways
- Market overview
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- Figure 1: Total US retail ecommerce sales and forecast, at current prices, 2015-25
- Impact of COVID-19 on ecommerce
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- Figure 2: Short, medium and long term impact of COVID-19 on ecommerce, August 2020
- Opportunities and Challenges
- Increasing desire for a return to normal, including delivery times
- Focus on sustainability to alleviate concerns around online shopping
- Leverage tech innovations to improve future of shipping and delivery
The Market – Key Takeaways
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- A growing ecommerce environment means greater package volume
- Adding value can help manage delivery timing
- Tech is becoming an important factor for shipping and delivery
- COVID-19 makes contactless delivery a must-have convenience
- Small brands look to forge their own delivery path
Market Size and Forecast
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- eCommerce keeps soaring ahead
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- Figure 3: Total US retail ecommerce sales and forecast, at current prices, 2015-25
- Macroeconomic factors
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- Figure 4: Expected U.S. unemployment, 2019-2025
- Figure 5: Expected consumer expenditure, 2019-2025
- Impact of COVID-19 on ecommerce
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- Figure 6: Short-, medium- and long-term impact of COVID-19 on ecommerce, August 2020
- Lockdown
- Re-emergence
- Recovery
- COVID-19: US context
- Learnings from the last recession
Market Factors
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- USPS delays jeopardize small businesses’ livelihoods
- eCommerce will continue to be a place for cost savings
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- Figure 7: Disposable personal income change from previous period, January 2019-July 2020
- Delivery from the skies
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- Figure 8: UPS drone delivery network
- Regulation on tech innovation
- Cutting down on waste
- Manage the influx of shopping across categories
Market Opportunities
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- Enhance the delivery experience
- Turn delays into delight
- Leverage tech to connect consumers to the delivery process
- Tap into consumers’ desire for environmental friendliness
- Give consumers more options to shop small
Companies and Brands – Key Takeaways
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- Amazon and UPS test out drones
- Announcing Walmart+ (finally)
- USPS works to improve current delivery practices
Competitive Strategies
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- Retailers blazing ahead with innovative delivery practices
- Amazon
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- Figure 9: Amazon drone green light
- Shipt (from Target)
- Walmart+
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- Figure 10: Walmart+ announcement
- Delivery services honing delivering
- UPS
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- Figure 11: UPS small business initiatives
- USPS
The Consumer – Key Takeaways
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- COVID-19 has simmered down quick delivery expectations – for now
- Delivery speed alone is no longer a differentiator
- Clear communication is critical along each step
- Brands and delivery services can give consumers peace of mind
- A less wasteful future is approaching
Consumer Trends and Shipping and Delivery
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- Technology, Surroundings and Value drive consumer thinking about shipping and delivery
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- Figure 12: Mintel Trend Drivers and associated pillars
The Effects of COVID-19
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- Patience is a virtue in a pandemic
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- Figure 13: Shopping nonessential items, June 2020
- Younger consumers are willing to pay for convenience
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- Figure 14: Shopping nonessential items, by generation, June 2020
- Brands need to provide easy solutions in the next normal
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- Figure 15: Returns during COVID-19, June 2020
- Older consumers are less concerned about cleanliness communication
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- Figure 16: Returns during COVID-19, by generation, June 2020
Shipping and Delivery Attitudes
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- Improvement opportunities for shipping and delivery
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- Figure 17: Attitudes toward shipping and delivery, June 2020
- It’s a balancing act between convenience and security
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- Figure 18: Attitudes toward shipping and delivery, June 2020
- Showing you care is more important than ever
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- Figure 19: Attitudes toward shipping and delivery, June 2020
Important Delivery Factors
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- The basics never go out of style
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- Figure 20: Important delivery factors, June 2020
- Provide younger consumers with flexible choices
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- Figure 21: Important delivery factors by Generation, June 2020
Communication
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- Email is still going strong
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- Figure 22: Ways of communicating, June 2020
- Texting is preferential for younger consumers
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- Figure 23: Ways of communicating, by generation, June 2020
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- Figure 24: Bright Cellars communication
- Figure 25: Bose customer service
Delivery Services and Attributes
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- Amazon wins deliveries based on its other offerings
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- Figure 26: Delivery services used, June 2020
- Continuing to keep customers first
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- Figure 27: Delivery service attributes, June 2020
Shipping and Delivery Concerns
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- Consumers want peace of mind
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- Figure 28: Delivery concerns, June 2020
- City-folk are concerned about thievery
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- Figure 29: Delivery concerns, by location, June 2020
Future of Delivery
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- The future of delivery is less wasteful
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- Figure 30: Environmental efforts, June 2020
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- Figure 31: Allbirds carbon credit program
- Younger consumers want to see less from delivery companies
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- Figure 32: Environmental efforts, by generation, June 2020
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- Figure 33: Meet Joe – Amazon sustainability
- Convenience reigns supreme
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- Figure 34: Future delivery options, June 2020
- Convenient delivery options provide consumers with flexibility
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- Figure 35: Future delivery options, by consumer segmentation, June 2020
- Speed is king for Millennials
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- Figure 36: Future delivery options, by generation, June 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Forecast
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
Appendix – The Market
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- Figure 37: Total US retail ecommerce sales and forecast, at current prices, 2015-25
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