Temando Survey Says Most U.S. Retailers Not Well Prepared For Shipping Challenges This Holiday Season

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Survey Identifies Key Shipping Difficulties for Enterprise, SMB, and Micro Retailers

U.S. retailers' preparation on four (4) key shipping issues

In many cases, large and small retailers can solve their shipping challenges with smart investments in software and hardware technology. - Carl Hartmann, CEO of Temando

Temando, a leading shipping and fulfilment software platform for commerce, today announced United States retailer data from its survey completed last month. The survey polled over 200 micro, small, mid-sized and enterprise retailers about a range of shipping-related challenges they face.1 According to the survey, most retailers are not well prepared to handle several shipping issues this holiday season. The Temando survey data further expound upon a different survey of 25 of the largest eCommerce retailers in North America, which identified that fulfilling orders on time is retailers’ biggest challenge during the holidays.

When asked if providing multiple shipping options (same day, express, standard, collect from store, etc.) will meet customer expectations this holiday season, 68 percent of all retailers are not well prepared. Nearly one-third (32 percent) indicated they are well prepared.2 Smaller retailers reported being less prepared than larger retailers: micro (24 percent), small (29 percent), mid-sized (36 percent), and enterprise (50 percent) retailers each reported being well prepared to offer multiple shipping options.1 This is likely because larger retailers’ greater number and variety of customers and shipments requires them to offer multiple shipping options.

In addition, 76 percent of all retailers are not well prepared to handle shipping delays and uncertainty this holiday season. About one quarter (24 percent) of all retailers did report being well prepared for this issue. 2 Small (29 percent) and mid-sized (28 percent) retailers reported being well prepared compared to 19 percent of enterprise retailers, likely because large retailers process a much greater number of orders and aren’t as nimble as smaller retailers. However, only 15 percent of micro retailers reported being well prepared likely due, in part, to their systems not being totally automated. 1

When asked if their return processes meet customer expectations this holiday season, 71 percent of all retailers indicated they are not well prepared, and 29 percent reported being well prepared. 2
Only 20 percent of micro retailers reported being well prepared compared to small (31 percent), mid-sized (33 percent) and enterprise (31 percent) retailers. 1 This is likely due, in part, to micro retailers’ systems not being totally automated.

In terms of back-end logistics, 75 percent of all retailer respondents are not well prepared, and 25 percent responded they are well prepared. 2,3 Less than one-third of enterprise (25 percent), mid-sized (26 percent), small (29 percent) and micro (20 percent) retailers each responded they are well prepared. 1

Additional survey findings include:

  • Key shipping difficulties -- Retailers cited meeting customer expectations (27 percent of total respondents), high courier rates (28 percent) and a lack of automation (19 percent) as important shipping difficulties they face. Customer expectations consist of various factors, including overall quality of service, shipping options, shipping costs, returns, tracking and notifications (email and SMS).
  • Lack of total automation -- All retailers responded that their systems for warehouse management (64 percent), booking a courier (61 percent), customer product returns (72 percent), and delivery tracking/customer communication (58 percent) are either manual or somewhat automated.

“Shipping and fulfilment are highly complex and important processes not only for business operations, but for keeping customers happy,” said Carl Hartmann, CEO and co-founder of Temando. “Several factors contribute to retailers’ shipping issues, such as warehouse management, supply chain, organizational complexity, shipping volume and technology to name a few. In many cases, large and small retailers can solve their shipping challenges with smart investments in software and hardware technology.”

The Temando survey was conducted online by Research Now and surveyed over 200 retailers in each of four countries, the United States, United Kingdom, Australia and France. The retailers surveyed all have an understanding of the eCommerce and fulfilment aspects of their businesses (manager or director-level and higher), ship more than five deliveries per week, operate in all main retail categories (e.g., electronics, clothing, furniture, toys, home & garden, books, etc.) except for grocery-related services, and have an online retail revenue greater than one percent of their total retail revenue. The survey was conducted in October 2015.

About Temando
Temando (“I send you” in Spanish) is a global technology company that exists to connect the world’s logistical resources into a single intelligent software platform and to make commerce universally accessible to everybody. The company’s solutions give merchants the power to move goods from anywhere they are to wherever they need to be, no matter how they need to get there. Temando provides merchants with access to rates and services from multiple couriers in one platform, creating amazing delivery experiences for their customers. The company has over 50,000 registered retailers and merchants and is one of the fastest growing tech companies in the APAC region, as recognized in the Asia Pacific Deloitte Technology Fast 500. Temando recently secured a $50 million Series B investment from Neopost Shipping, the Neopost division dedicated to developing and providing parcel shipping and tracking offers for Commerce and Logistics. Headquartered in Australia, Temando has offices in Brisbane, Sydney, San Francisco, London, Paris and Manila. For more information, please visit temando.com and shipping.neopost.com.

About Research Now
Research Now is an independent, single source for international online research across Europe, the Middle East, the Americas and Asia-Pacific. The company, which is ISO 20252 accredited, has been providing proprietary, high-quality online research panel samples since 2001. Research Now’s panels are used for market research purposes only and comply with or exceed all applicable industry standards published by ESOMAR, the MRS, the AMSRS (Australia). Research Now is comprised of multi-lingual, online research experts working with its clients across 22 offices worldwide. For more information, please visit http://www.researchnow.com/.

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