Holiday Shopping Woes: Issues Facing Consumers and Retailers
The Consumer Perspective:
Majority of Consumers Anticipate Receiving Alerts Regarding Holiday Delays in Delivery
In a recent survey conducted by Intercom, an astounding 77% of respondents expressed concern about encountering difficulties during their online shopping journey this holiday season, as per the company's Holiday Shopping Experience Report. The survey polled 1,000 US customers and 500 customer service representatives.
Among the top concerns were gifts arriving late (45%), items being unavailable (33%), and goods being more expensive than anticipated (42%). Furthermore, nearly all respondents (94%) stressed the importance of being informed about delays before asking, and 79% wanted timely notifications about delays and backorders before proceeding to checkout or making a purchase.
A Longstanding Problem:
Delays in delivery have been a persistent issue throughout the COVID-19 pandemic, according to reports. In a survey released by Narvar in October 2020, 36% of respondents experienced substantial delays, but only 19% were notified of these delays by retailers.
Staffing and Supply Chain Concerns:
Besides shipping holdups, 76% of customer service representatives in the Intercom survey shared worries about having sufficient staff to manage customer inquiries during the holiday season. A study from First Insight and the Wharton School's Baker Retailing Center, published in October, found that all of the retail executive respondents anticipated supply chain disruptions impacting the holiday season this year, and that these disruptions would continue through 2022.
Shopper Anxieties:
Shoppers aren’t the only ones fretting about supply chain issues negatively affecting the holiday. Coresight Research reported that more than a third of U.S. consumers worried about their purchases arriving late, and Deloitte found that 75% of shoppers were concerned about their desired items running out of stock.
"Companies aim to accommodate their customers, but support teams are typically stretched during this time of year, and the global supply chain issues add an additional strain to both the support teams and the consumers they are supporting," Des Traynor, co-founder and chief strategy officer at Intercom, stated in a press release.
- Amidst the pandemic, concerns about cybersecurity in online markets have escalated, as the surge in e-commerce exposes more vulnerabilities to potential breaches.
- In the midst of the holiday shopping season, the weather can also pose a challenge, with increased chances of delayed shipments due to harsh winter conditions.
- To mitigate health risks associated with the pandemic, many retailers have implemented AI-powered research to optimize store layouts and control crowd size, promoting social distancing.
- Policymakers have started to acknowledge the critical role of finance in business growth, and are working on breaking barriers to financial inclusion, especially in underserved markets.
- In a world evolving towards a culture of sustainability, fashion industry leaders are focusing on creating eco-friendly alternatives to traditional materials for clothing production.
- While war poses a significant threat to international markets, some researchers are exploring AI-driven solutions to predict conflicts and implement peace-keeping measures more effectively.
- During these challenging times, TV has become a source of escapism for many, with audiences seeking comforting narratives and engaging content to distract from economic hardships.
- To maintain business continuity amidst shipping delays and supply chain disruptions, many retailers are exploring new avenues, such as stocking up on popular items earlier or offering virtual shopping experiences.
