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Impact of Poor eCommerce Shipping & Logistics Experience

Puneet Bhalla

Associate Director - Marketing @ Shiprocket

March 19, 2018

3 min read

The main goal and success mantra of a business is to cater to the needs and preferences of customers and increase sales. And, when it comes to catering customer’s needs, there are lots of other factors that play an important role in improving your business. Gone are those days when customers only used to be satisfied with the product. Nowadays, they want more in the form of added services. With the advent of online shopping and eCommerce, the whole concept of business and logistics has undergone a sea change. As a business, it is important to know that lack of proper shipping can ruin your business prospects.

Typically, these are the adverse effects and consequences of poor eCommerce shipping experience your business can have:

You May Loose Customer’s Loyalty

The whole effort and process of selling a product can go flak if it is not delivered properly to the customer. It is perhaps a known fact that careless shipping efforts will have a huge negative impact on customers and will reduce brand loyalty to a significant extent. For example, if the product is delivered to the customer a lot later than the mentioned delivery date, or if the product is delivered in a damaged condition, it is beyond doubt that the customer will not again order from the same place or site.

A Negative Impact on the Brand Image

The more unhappy customers you have, the more are the chances that people will talk negatively about your brand. The implications of such acts are that it may impact your brand’s image negatively because of bad word of mouth marketing. In that case, there will be a significant reduction in the number of customers for your online store.

This Will Lead to Increased Logistics Cost

If the product is sent in a damaged state to the customer, there is the huge probability that it will be returned to the seller. In that case, there will be undue expenditure to be borne due to return and logistics costs. Such costs can be avoided if the shipping is done in a proper manner to ensure that the product does not get damaged in any way.

More Pressure on the Customer Support Team

A bad or delayed shipping experience would mean more pressure on the customer care division of your business. Customers will call and email to your customer care team to make complains or enquire about their delayed or damaged shipment. This will adversely affect the overall revenue generation of these divisions and have a negative impact on the workforce.

Increase in Negative Reviews on the Website

Reviews and recommendations play a major role in improving or reducing sales. If your business does not have a good shipping service and if the customer is not happy, there is a high probability of a bad review. Other customers may see that review and get apprehensive about buying from you. In that way, you lose out on potential customers and have a negative public relations experience.

Bad Reputation on Social Media Platforms

Last but not the least; bad shipping experience may lead to negative comments on social media platforms. As social media has tremendous reach, it may be that your businesses may get into the blacklisted list of the customers and no one buys from you. In that case, your business has a chance to suffer tremendous losses and may eventually shut down.

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