Operational reliability is the most important quality indicator for delivery among online shopping customers.

Operational reliability is the most important quality indicator for delivery among online shopping customers.

The requirements for a quality e-commerce delivery are crafted under the hood. A seamless experience results from deep customer understanding, well-considered technological solutions, and transport partners that fit the needs—specifically in the plural.

DB Schenker's eCom Sales Manager Valeri Minkenen demands one thing as a consumer from his e-commerce delivery.

– Reliability. If I’ve ordered a product to my home, I don’t want it to be at Ärrä. Conversely, if I’ve ordered it to Ärrä, I don’t want it at the K-store.

Minkenen isn’t alone in his stance: reliability is the most critical measure of delivery quality for Finnish e-commerce customers. As an expert in the field, he advises retailers to prepare for situations where the delivery might fail for one reason or another.

– Don’t think “what should I do if something goes wrong,” but “what will I do when something goes wrong.”

The prerequisites for a quality e-commerce delivery are crafted under the hood

An e-commerce delivery begins with a visit to the online shop. How well is the purchasing process designed, where can the customer find the delivery terms, and how easily can they choose their preferred delivery provider?

Things that support delivery reliability happen mainly in the background: the transportation company must receive order information, consumer data, and the delivery address in an electronically processable and correct format.

– Quality data handling and movement create the conditions for a premium delivery, Minkenen states.

In the simplest terms, the definition of delivery quality is that packages arrive at the right place, at the right time. 

As the delivery nears its endpoint, a quality delivery means that the recipient is kept informed about the delivery’s progress.

– The consumer should never have the feeling of who, when, and where. And even if surprises arise, they should be informed of those too.

A quality delivery doesn’t stop when the customer receives their order.

– Aftercare is also crucial. Ask the customer how the delivery went and inform them how they can return items, Minkenen reminds.

Handling error situations elegantly requires preliminary work

Valeri Minkenen monitors trends related to e-commerce and transportation as part of his job. He knows that consumers take good service as a given, so it’s not so much a competitive advantage as a prerequisite.

– The consumer is king. They neither understand nor should they be required to understand what happens in the background. The service should work without them needing to get involved.

However, packages are handled by people, so errors will occur even in well-planned processes.

– That’s why delivery terms need to be sound and tailored to your needs, not just a necessary evil copied from elsewhere.

Ecommerce merchants should thoroughly review all potential error situations in advance and find out the facts to inform consumers about their options.

– Even if the fault lies with the transportation company, disappointment is often associated with the e-commerce store in the eyes of the consumer, which is why preparation benefits the business.

Responsibility in the transport sector goes beyond just fuel consumption

Responsibility is a topic that comes up in every customer discussion Valeri Minkenen has. The larger the ecommerce company, the bigger the role of the topic.

– I want to tip my hat to all companies that don’t make their choices based solely on money.

He influences the implementation of responsibility by consulting; providing all his expertise for the use of his customers. This is necessary because the topic is vast.

Apart from fuel and route logistics influencing its consumption, Minkenen wants to emphasize support functions.

– What equipment and vehicles are used inside the terminal, how is the building lit, and how is the energy used produced, he lists examples.

Fully electric Last Mile delivery in major cities is a near-future reality

The hot topic in the transport sector right now is Last Mile delivery, that final stretch from warehouse or terminal to the customer. The subject is talked about from both service and responsibility standpoints.

One example of innovation is the delivery robots appearing in the street scene of the capital region. DB Schenker's Vantaa terminal also features an electric truck for parcel delivery. In Tampere, all downtown area deliveries by DB Schenker will occur using electricity within two years.

The aim is to extend this practice to all major cities in Finland. The decision is significant, as 50% of parcels are distributed specifically to these areas.

– Regarding the final delivery, I see and trust that electric Last Mile is the future.

Minkenen hopes that consumers will gain more influence in the future over how products are manufactured, packaged, and delivered.

Transportation solutions should be considered even before starting an e-commerce business

Valeri Minkenen too often hears stories of transport choices that, in practice, do not align well with the e-commerce business and its customers' desires.

– I wish I could be part of discussions as early as when a customer is planning to start an e-commerce business.

The wish stems from the importance of the whole: which platform does the retailer plan to choose, what are the integration possibilities, is there a thought to internationalize, and what requirements does the product being sold have concerning delivery time versus customer expectations?

– By looking at the bigger picture, the e-commerce merchant can ensure that the all-important under-the-hood aspect is in good order. Besides the process, customer understanding is significant.

In Sweden, ecommerce customers have many delivery options. In Finland, decisions are made more cautiously, despite there being no need. Minkenen always encourages his customers to opt for multiple partners.

– The more options an online store offers for different life situations, whether in delivery times or eco-friendly values, the better.

However, e-commerce is ultimately a business only once the product reaches the buyer's hands—and preferably at the agreed time and place.

This blog post is part of the Crasman Insight review, where we delve deeper into e-commerce processes from assortment management to warehousing and transportation.

Crasman Insight is a publication released twice a year, dealing with phenomena, trends, and insightful contributors in e-commerce.

Crasman Ltd

15 Sept 2022