Should I wait or should I go?

The rise of e-commerce has led to an increase in parcel deliveries, increasing the need to address the cost and environmental impact of last-mile delivery. Customers who have become accustomed to next-day free delivery can play an important role therein by choosing more sustainable delivery options. Retailers and logistic service providers could give customers the choice to wait for their delivery or pick up their parcel from collection-and-delivery points. 

The Logistics domain of BUas examined how customers (the parcel recipients) can be stimulated to choose a more sustainable delivery option, and how this affects their satisfaction. 

Key Points

1. E-commerce Growth and Last-Mile Delivery Challenges
   • The rise of e-commerce has increased the demand for last-mile deliveries, leading to higher costs and environmental impacts.
   • Logistic service providers (LSPs) are adopting electric vehicles and other measures to reduce emissions, but customer behavior also plays a crucial role.
2. Customer Incentives for Sustainable Choices
   • Extrinsic incentives like price surcharges for next-day delivery or discounts for longer delivery windows can influence customer choices.
   • Intrinsic motivations, such as environmental awareness, can also be leveraged.
3. Order Consolidation
   • Consolidating orders by delaying deliveries or using parcel lockers can reduce the environmental impact.
   • The study found that customers are willing to wait longer for their orders if it means avoiding a surcharge.
4. Customer Satisfaction and Perceived Value
   • Customer satisfaction is influenced by pre-purchase expectations and the perceived value of the service.
   • Offering sustainable delivery options can affect overall satisfaction, especially if customers understand the environmental benefits.
5. Nudging and Social Pressure
   • Presenting sustainable options as the default choice and using social pressure (e.g., sharing choices on social media) can nudge customers towards greener alternatives.
   • Informing customers about the sustainability of delivery options increases the likelihood of them choosing the greener option.
6. Experimental Findings
   • Two surveys were conducted to test customer preferences between next-day home delivery and more sustainable methods.
   • Results showed that financial incentives (surcharges for next-day delivery) significantly increased the likelihood of customers choosing sustainable options.
   • Environmental awareness and familiarity with parcel lockers also positively influenced customer choices.
7. Policy Implications
   • The study suggests that applying delivery surcharges can be an effective governmental tool to promote sustainable delivery practices.
   • Urban planning should consider the accessibility of parcel lockers and collection points to encourage their use.

Conclusion

The research highlights the importance of both extrinsic and intrinsic incentives in promoting sustainable delivery choices. Financial incentives, environmental awareness, and strategic nudging can significantly influence customer behavior, contributing to more sustainable e-commerce logistics.

Interested in the full research? Download the research paper: Should I wait or should I go? Encouraging customers to make the more sustainable delivery choice - ScienceDirect