Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

The “next day, free delivery” myth unravelled

The “next day, free delivery” myth unravelled Currently, it is unclear how omnichannel retailers can create a last mile offer that is both attractive and sustainable from an economic and environmental point of view. The purpose of this paper is to explore to which extent consumers are willing to adopt last mile options that are more sustainable and how these options should be composed to remain attractive.Design/methodology/approachTo this end, the authors surveyed a representative sample of Belgian consumers, using choice-based conjoint experiments, and analysed their preferences structures.FindingsConsumers’ preference goes out to free, next day delivery to an address of choice, on regular office hours during the week. However, when free delivery and return are offered, consumers are willing to collect their orders themselves or wait longer for their orders to arrive.Practical implicationsThe research findings are important for retailers that (plan to) operate an omnichannel model. For omnichannel retailers with a dense store network, the results indicate that consumers accept their store network as pick-up and return locations, allowing retailers to create a more efficient and sustainable supply chain in which their online and offline activities can be combined.Originality/valueThe research findings contribute to current literature and practice by combining “planet” and “profit” components of sustainability in last mile transport and applying it in the novel omnichannel environment. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Retail & Distribution Management Emerald Publishing

The “next day, free delivery” myth unravelled

Download PDF
16 pages

Loading next page...
 
/lp/emerald-publishing/the-next-day-free-delivery-myth-unravelled-RuIvhfaI4t
Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0959-0552
DOI
10.1108/ijrdm-06-2018-0104
Publisher site
See Article on Publisher Site

Abstract

Currently, it is unclear how omnichannel retailers can create a last mile offer that is both attractive and sustainable from an economic and environmental point of view. The purpose of this paper is to explore to which extent consumers are willing to adopt last mile options that are more sustainable and how these options should be composed to remain attractive.Design/methodology/approachTo this end, the authors surveyed a representative sample of Belgian consumers, using choice-based conjoint experiments, and analysed their preferences structures.FindingsConsumers’ preference goes out to free, next day delivery to an address of choice, on regular office hours during the week. However, when free delivery and return are offered, consumers are willing to collect their orders themselves or wait longer for their orders to arrive.Practical implicationsThe research findings are important for retailers that (plan to) operate an omnichannel model. For omnichannel retailers with a dense store network, the results indicate that consumers accept their store network as pick-up and return locations, allowing retailers to create a more efficient and sustainable supply chain in which their online and offline activities can be combined.Originality/valueThe research findings contribute to current literature and practice by combining “planet” and “profit” components of sustainability in last mile transport and applying it in the novel omnichannel environment.

Journal

International Journal of Retail & Distribution Management – Emerald Publishing

Published: Mar 21, 2019

Keywords: Sustainability; Consumer behaviour; Electronic commerce; Last mile; Omnichannel retail

References

  • Revenue management opportunities for Internet retailers
    Agatz, N.; Campbell, A.M.; Fleischmann, M.; van Nunen, J.; Savelsbergh, M.
  • Understanding the impact of e-commerce on last-mile light goods vehicle activity in urban areas: the case of London
    Allen, J.; Piecyk, M.; Piotrowska, M.; McLeod, F.; Cherrett, T.; Ghali, K.; Nguyen, T.; Bektas, T.; Bates, O.; Friday, S.; Wise, S.; Austwick, M.
  • The theory of planned behavior
    Azjen, I.
  • Green & social delivery report
  • Consumer preferences for sustainability and their impact on supply chain management: the case of mobile phones
    Bask, A.; Halme, M.; Kallio, M.; Kuula, M.
  • The last mile challenge: evaluating the effects of density and delivery window patterns
    Boyer, K.K.; Prud’homme, A.M.
  • Retailers’ logistics strategies in times of omnichannel retail
    Buldeo Rai, H.; Verlinde, S.; Macharis, C.; Schoutteet, P.; Vanhaverbeke, L.
  • The impact of cross-channel integration on retailers’ sales growth
    Cao, L.; Li, L.
  • From bricks to clicks: the impact of online retailing on transport and the environment
    Cullinane, S.
  • The rise of on-demand ‘instant deliveries’ in European cities
    Dablanc, L.; Morganti, E.; Arvidsson, N.; Woxenius, J.; Browne, M.; Saidi, N.
  • Comparative carbon auditing of conventional and online retail supply chains: a review of methodological issues
    Edwards, J.; McKinnon, A.C.; Cullinane, S.
  • Comparative analysis of the carbon footprints of conventional and online retailing: a ‘last mile’ perspective
    Edwards, J.; McKinnon, A.C.; Cullinane, S.L.
  • Carbon dioxide benefits of using collection-delivery points for failed home deliveries in the United Kingdom
    Edwards, J.; McKinnon, A.C.; Cherrett, T.; McLeod, F.; Song, L.
  • Barriers to widespread adoption of electric vehicles: an analysis of consumer attitudes and perceptions
    Egbue, O.; Long, S.
  • Omnichannel retail operations with buy-online-and-pickup-in-store
    Gao, F.; Su, X.
  • Potential for optimised food deliveries in and around Uppsala City, Sweden
    Gebresenbet, G.; Nordmark, I.; Bosona, T.; Ljungberg, D.
  • Thuisleveringen kosten België 45.000 euro per dag
    Gijsbrechts, K.
  • Facebook and sustainable development: a case study of a French supermarket chain
    Gonzalez-Lafaysse, L.; Lapassouse-Madrid, C.
  • Conjoint analysis in consumer research: issues and outlook
    Green, P.; Srinivasan, V.
  • A new vehicle for urban freight? An ex-ante evaluation of electric cargo bikes in courier services
    Gruber, J.; Kihm, A.; Lenz, B.
  • The digitalization of retailing: an exploratory framework
    Hagberg, J.; Sundstrom, M.; Egels-Zandén, N.
  • How many choice tasks should we ask?
    Hoogerbrugge, M.; van der Wagt, K.
  • Last mile fulfilment and distribution in omni-channel grocery retailing: a strategic planning framework
    Hübner, A.; Kuhn, H.; Wollenburg, J.
  • Omnichannel customer behavior: key drivers of technology acceptance and use and their effects on purchase intention
    Juaneda-Ayensa, E.; Mosquera, A.; Murillo, Y.S.
  • Sustainable consumer behavior: literature overview
    Kostadinova, E.
  • Exploring the choice of battery electric vehicles in city logistics: a conjoint-based choice analysis
    Lebeau, P.; Macharis, C.; Van Mierlo, J.
  • Measurement of CO2 emissions from road freight transport: a review of UK experience
    McKinnon, A.C.; Piecyk, M.I.
  • Transport impacts of local collection/delivery points
    McLeod, F.; Cherrett, T.; Song, L.
  • Transition through dialogue: a stakeholder based decision process for cities: the case of city distribution
    Macharis, C.; Milan, L.
  • A review of the environmental implications of B2C e-commerce: a logistics perspective
    Mangiaracina, R.; Marchet, G.; Perotti, S.; Tumino, A.
  • 2016 state of e-commerce delivery – consumer research report
  • Framing green consumer behaviour research: opportunities and challenges
    Narula, S.A.; Desore, A.
  • Customer experience 2.0: how data, technology, and advanced analytics are taking an integrated, seamless customer experience to the next frontier
    Nash, D.; Armstrong, D.; Robertson, M.
  • Introduction to the special issue information technology in retail: toward omnichannel retailing
    Piotrowicz, W.; Cuthbertson, R.
  • Increasing the cost efficiency of e-fulfilment using shared reception boxes
    Punakivi, M.; Tanskanen, K.
  • Possibilities and barriers for using electric-powered vehicles in city logistics practice
    Quak, H.; Nesterova, N.; van Rooijen, T.
  • Sustainability and corporate social responsibility in supply chains: the state of research in supply chain management and business ethics journals
    Quarshie, A.M.; Salmi, A.; Leuschner, R.
  • Vehicle routing with roaming delivery locations
    Reyes, D.; Savelsbergh, M.; Toriello, A.
  • City logistics: challenges and opportunities
    Savelsbergh, M.; Van Woensel, T.
  • Network design for reverse logistics
    Srivastava, S.K.
  • The impact of choice architecture on sustainable consumer behavior: the role of guilt
    Theotokis, A.; Manganari, E.
  • Improving home delivery efficiency by using principles of address intelligence for B2C deliveries
    Van Duin, J.H.R.; de Goffau, W.; Wiegmans, B.; Tavasszy, L.A.; Saes, M.
  • A comparative analysis of carbon emissions from online retailing of fast moving consumer goods
    Van Loon, P.; Deketele, L.; Dewaele, J.; McKinnon, A.C.; Rutherford, C.
  • From multi-channel retailing to omni-channel retailing: introduction to the special issue on multi-channel retailing
    Verhoef, P.C.; Kannan, P.K.; Inman, J.J.
  • How to consolidate urban flows of goods without setting up an urban consolidation centre?
    Verlinde, S.; Macharis, C.; Witlox, F.
  • Home delivery and the impacts on urban freight transport: a review
    Visser, J.; Nemoto, T.; Browne, M.
  • B2C e-commerce logistics: the rise of collection-and-delivery points in the Netherlands
    Weltevreden, J.
  • Understanding the diversity of final delivery solutions for online retailing: a case of Shenzhen, China
    Xiao, Z.; James, J.W.; Lenzer, J.; Sun, Y.
  • Physical distribution service quality in online retailing
    Xing, Y.; Grant, D.B.; McKinnon, A.C.; Fernie, J.
  • Sustainable consumption: green consumer behaviour when purchasing products
    Young, W.; Hwang, K.; McDonald, S.; Oates, C.J.
  • The growth of online retailing: a review of its carbon impacts
    Van Loon, P.; Mckinnon, A.C.; Deketele, L.; Dewaele, J.