Avery Dennison: How Consumer Demands are Shaping E-Commerce
Consumer shopping habits have turned towards e-commerce, a change that brings with it new expectations for the entire supply chain.
For manufacturers and their logistics partners, the pressure is mounting to meet demands for speed and precision.
To understand the current landscape, global manufacturing and solutions company Avery Dennison has released new research based on the views of 5,000 consumers across the UK, US, France and Germany, examining the latest trends and demands impacting the sector.
The research indicates that consumers now have higher expectations for delivery than ever before. They anticipate flexible delivery options, accurate delivery times and the facility for real-time parcel tracking.
This is creating a pressurised system for parcel carriers who are attempting to meet these rising expectations while simultaneously reducing operational costs.
Evolving consumer demands and delivery expectations
What may have been considered exceptional service in the past is now viewed as standard for parcel delivery. As a result, consumers are becoming more demanding about the quality of the experience.
The research from Avery Dennison shows that many are willing to pay more for a better service, which could indicate there is room for innovation in the market.
“The message from consumers is loud and clear: they expect precision and control over their deliveries,” explains Julie Vargas, Vice President and General Manager of Identification Solutions at Avery Dennison.
She adds: "Customers may tolerate delays – but only if they're kept in the loop. Real-time visibility shouldn’t be considered a luxury anymore; it's the price of staying competitive. Retailers and carriers who embrace transparency will not only ease frustrations around shipping delays and rising costs, they'll earn lasting customer trust in a tough logistics climate."
Priorities for e-commerce delivery can vary by region, age and context, but the expectation for tracking is generally higher for fragile high-value or bulky items.
According to the data, shoppers in the 16-24 age category are more likely to pay a premium for parcel tracking than consumers aged 61 to 70.
When asked, only 5.4% of 16 to 24-year-olds said there would be no scenario where they would pay a premium, whereas 38.9% of 61 to 70-year-olds said they would not pay.
Identifying key supply chain bottlenecks
With Pitney Bowes projecting global parcel volumes to surpass 500 billion by 2028, this increase is creating demand for solutions that can meet rising consumer expectations. Leading carriers and retailers are investing in real-time visibility and automation to increase efficiency.
- 61% online shoppers are willing to pay more for a delivery experience which fits their specific need
- 31% US consumers stop doing business with a brand after one bad experience
- 28% consumers say damaged packages are the biggest bugbear in eCommerce delivery
- 27% UK shoppers and 20% German shoppers place tracking issues as a major issue for eCommerce confidence
- 54% consumers say tracking allows them to go about their day without stressing about missing a delivery
However, every delivery passes through multiple logistics steps, creating many potential points of failure that can disrupt a seamless experience. These include:
- Order fulfilment: Delays in confirming or dispatching an order, which can be caused by phantom inventory picking errors and warehouse labour bottlenecks.
- First mile: A lag in carrier pick-up after a shipping label is printed can create a custody gap that undermines consumer trust.
- Sorting centres: These are described as frequent blind spots. High parcel volumes, poor labelling and outdated technology in non-automated centres increase the risk of human error.
- Last mile: A lack of an estimated time of arrival (ETA) can be a source of consumer anxiety. Missed hand-offs or routing errors can derail the final stage.
- Delivery and returns: Around 20% of parcels fail on the first attempt. On the return journey, confusing instructions or slow refunds can erode trust.
The role of automation and visibility
By investing in innovation across the supply chain, implementing automation and removing these bottlenecks, carriers and brands can increase efficiency. For instance, RFID-triggered picking verification and instant order confirmation can reduce risks in order fulfilment.
Providing real-time ETA updates allows consumers to plan their day and be home to receive their parcel. For returns, Avery Dennison advises that brands should "treat returns like outbound deliveries, with full tracking and real-time status".
Ultimately, investing in visibility and automation throughout the supply chain could be key to building consumer trust and improving satisfaction.
For manufacturers and their partners, adopting these technologies may be essential to increasing efficiency and maintaining a competitive edge in a demanding logistics climate.
