The three year review from MetaPack. Learn more about MetaPack's The Delivery Conference 2018 (#TDC18) at the event website https://www.thedeliveryconference.com.

1. Leaders &
Heroes
THE DELIVERY
CONFERENCE
CHARLOTTE GOERING
Pre-Sales Consultant
eCommerce: the 3 year view from MetaPack
Solutions Theatre
LAURA HEIDRICH
Marketing Programmes Manager

2. eCommerce – The three
year view from MetaPack
Consumer Research Report & Project Kepler
C O N F I D E N T I A L

3. 2017 STATE OF ECOMMERCE
DELIVERY

4. 3
STUDY
METHODOLOGY
C O N F I D E N T I A L
COUNTRY
AGE

5. 4C O N F I D E N T I A L
HOW DELIVERY INFLUENCES
ONLINE PURCHASING DECISION
of consumers bought goods from
one online merchant over another
because the delivery options were
more convenient for their needs
60%
expect delivery options
to be displayed on the
product page
77%
of consumers say
delivery defines who
they always shop with
54%

6. C O N S U M E R S P L A C E A
P R E M I U M O N E X P E R I E N C E
A N D C O N V E N I E N C E – A growing
number of consumers are now prioritising
convenience over cost; 35% of online
shoppers say they are happy to pay to get
items delivered when and where they
want.
5C O N F I D E N T I A L
KEY
FINDINGS
35%

7. 6C O N F I D E N T I A L
KEY
FINDINGS
P E R S O N A L I S A T I O N I S R I S I N G U P T H E A G E N D A
–
Last year personalisation was ranked as an important delivery
consideration by just 2% of shoppers. Fast forward to 2017 and 15%
now say they expect online providers to know who they are, and to
schedule delivery in line with their usual or preferred arrangements.
What’s more, almost half (42%) said it was somewhat or very
important that they had the freedom to choose which carrier delivers
their online purchases, while over a quarter (29%) said that getting
their goods delivered wherever they are – and not a fixed postcode –
was now a top priority.
42%

8. 7C O N F I D E N T I A L
KEY
FINDINGS
D E M A N D F O R T R Y - B E F O R E - Y O U -
B U Y I S S E T T O S U R G E – 57% of
shoppers saying they would be likely/very likely
to use a try-before-you-buy service, mastering
fulfilment and returns agility - while achieving
economies of scale - will be critical for those
providers looking to capitalise on this burgeoning
opportunity.
57%

9. 8C O N F I D E N T I A L
KEY
FINDINGS
T H E A P P E A L O F D E L I V E R Y
L O Y A L T Y P R O G R A M M E S I S
S T R O N G – 79% of consumers say they want
the eCommerce websites they shop with to offer
a delivery loyalty programme, so they can benefit
from faster/free delivery – and 86% of these
went on to say this ‘VIP style’ membership would
incentivise them to shop more exclusively with
eCommerce sites.
79%

10. 9C O N F I D E N T I A L
KEY
FINDINGS
OVER A QUARTER (27%) SAID THEY CARED
A GREAT DEAL ABOUT THE ENVIRONMENTAL
TOLL OF THEIR ONLINE DELIVERIES –
with a further 47% saying they were conscious these contributed
to increased traffic congestion and carbon emissions.
T H E R I S E O F T H E
C O N S C I E N T I O U S C O N S U M E R – A
significant number of consumers are ethically
motivated and concerned about how the
decisions they make as shoppers, impact
society.
Given that 71% of consumers said they would like to have all their online
orders delivered in one go, a consolidated delivery approach by retailers and
brands is likely to meet with overwhelming approval by conscientious
consumers.

11. 10C O N F I D E N T I A L
KEY
FINDINGS
T H E N E E D F O R S P E E D –
With next-day and same-day delivery now
an established practice, consumer hunger
for ever faster delivery options continues
unabated. More than half (52%) ranked fast
delivery as their top or second most
important priority – up from 30% of last
year’s respondents.
52%

12. PROJECT KEPLER

13. 12C O N F I D E N T I A L
E - C O M M E R C E A S A S H A R E O F R E T A I L
A M A C R O V I E W
• Customers continue to focus on cost, quality
and convenience, which drives the sustained
growth of e-commerce.
• MetaPack expect the e-commerce share of retail
sales to hit 20% by 2020 in some developed
countries.
• New technology raises the bar but doesn’t
change the fundamentals
• Increase proliferation of new carrier and PUDO
services
• All vendors in the eCommerce ecosystem will
need to respond faster and with greater
flexibility
VELOCITY & PROLIFERATION
Fundamentals unchanged & trends to set to accelerate
7.6%
8.5%
9.3%
10.0%
10.7%
11.3%
3.6%
4.3%
4.9%
5.5%
6.1% 6.5%
0%
2%
4%
6%
8%
10%
12%
Average of
2013
Average of
2014
Average of
2015
Average of
2016
Average of
2017
Average of
2018
Developed World Developing World
Sources: MetaPack Research, eMarketer.com

14. 13C O N F I D E N T I A L
THE MIGHTY A’S
Amazon & Alibaba's scale and investment will
continue to lead the market
INCREASED VERTICAL
I NTEGRATI ON
• Amazon spends $17B each year on R&D
• Alibaba paying $807M to acquire Cainaio
• Amazon Logistics has 7% of UK parcel market
MO VI NG I NTO NEW MARKETS
• Amazon’s spending $3B in India alone
• Amazon is the largest apparel retailer in the U.S.
with revenues of over $16B
Sources: MetaPack Research, VOX Media, eMarketer.com
A M A Z O N ’ S G R O W I N G S H A R E O F
U . S . E - C O M M E R C E R E T A I L

15. 14C O N F I D E N T I A L
A TWO-SPEED WORLD
Acceleration to a polarisation of retail
Sources: MetaPack Research, Wired.com, JD Sports, CNBC
M I D D L E B E G I N S T O F A L L O U T
Amazon sets the hygiene standard for customer
experience. In the 2017, stalwarts like RadioShack and
Toys R Us have filed for bankruptcy protection.
Retailers and Brands are fighting back by meeting
minimum standards and then innovating around the
buying experience to differentiate.
C U S T O M E R S E G M E N T O F O N E
Micro-segmentation is driving LTV. Netflix provides
dynamic segmentation to over 100m customers.
S O M E C U S T O M E R S A R E M O R E V A L U A B L E
T H A N O T H E R S
JD Sports and John Lewis know that for some brands a
small portion of customers drive the majority of their
margin.

16. 15C O N F I D E N T I A L
COLLABORATE OR DIE
Expect strange bedfellows
FRONT -L INE, CUSTOMER -
FACI NG, CO O PERATI ON
• Increasing popularity of loyalty programs -
Amazon Prime members spend on average 4.5
times more than non-members
• Joint ventures used to create value –
Lazada, Uber & Netflix JV in Singapore, the
worlds most developed e-commerce market.
Business model innovation is necessary.
• Abstraction of customer preferences
BACK -END SYNERGIES
• Smart Sourcing – local, green & unique
• Dynamic delivery & returns – Adidas partner
program & aggregation of final mile
• Reduce & reconfigure the real-estate portfolio–
asset sharing
• Analytics increase margin and improve customer
experience – Semantic search engine by WalMart
• Automation improve productivity – Ocado have
seen significant improvements in picking productivity
through robotics.
Sources: MetaPack Research, Bloomberg, Wired.com, CNBC

17. 16C O N F I D E N T I A L
FROM OMNI-CHANNEL TO OMNI-EXPERIENCE
Technology will underpin the experiential purchase & new business models
Social & Influence
Six in 10 users will
purchase based on the
social media
• Facebook accounts for
64% of total social
revenue.
• Instagram engagement
is 58x higher than
other platforms.
Discovery
Product discovery is
transforming retail.
• Subscription models
• Curated buying
• Virtual fitting room &
image recognition
• Try before you buy
Stores matter
Physical spaces just as
important to millennials
• Increase visibility
• Expert advice
• Click & collect
Mobile
Device of choice bridges the
digital and physical
• Increasingly popular buying
channel
• Used in store for research
• Chatbots delivered by mobile
messaging tools like WeChat
Forward-thinking retailers will concentrate their efforts on creating a path to shop that
responds to customers’ demands, integrating in-store technology, mobile, cloud,
analytics and social media in a unified system to boost customer engagement.
Sources: MetaPack Research, Retail Next, Adweek, CNBC

18. WHAT DOES THIS MEAN FOR
RETAILERS AND CARRIERS

19. 18C O N F I D E N T I A L
• Experience key to attracting and
retaining customers
• Offer today's advanced services
(same day, options,..) as standard
• Grant customers visibility and
control over deliveries
• Willingness to collaborate in
order to compete with Amazon
IMPACT ON THE DELIVERY MARKET
Ada ptio n required
77%60%
Carrier
60%
Retailer
• Dominant volume share of big five
globally
• Explosion of last mile services
and asset sharing in the middle
mile
• Cost pressure tackled with better
asset management, collaboration
and data investment

20. Thank you