Technology Newsmaker Q&A Kristin DeBates 2014

Kristin DeBates, automotive segment marketing manager at UPS, discussed the survey with Aftermarket Business World, particularly the findings that shoppers were particularly price sensitive about shipping costs.

What was the most surprising finding in the survey, in your opinion?

The biggest finding was how restocking fees impact the likelihood to purchase. It drops significantly from 87 to 26 percent if a restocking fee is paid on return. Even if shipping is free, the likelihood to buy drops off sharply. So this audience is hyper-sensitive to that. When I talk to different retailers, a lot of them have restocking fees, and part of it is because they are trying to manage returns.

How could the growing use of mobile devices affect the online channel, and the way that products are presented online?

Retailers have to optimize their content for mobile, so consumers can easily browse and stay engaged in their apps. If products are presented in a way that's optimized for mobile, they will display better. They also have to leverage other outlets like social media and create a seamless experience for consumers.

It appears shoppers are very finicky about their shipping options and costs – do you know if this is consistent with the general population of (non-automotive) online shoppers? Given the cost to ship, is it even possible to meet the demands of these shoppers, who increasingly want free shipping?

It is consistent with the general online shopper data. You have to have an avenue to allow for other options. If you have options and set expectations, so customers will know when a package will be delivered. Shoppers have this need to see free shipping, or they don't feel like they are getting a good deal. If there is a way to embed the price into a shipping threshold or revenue threshold in terms of sales, that's an effective strategy. You have to balance profitability with customer needs. If you can leverage that revenue threshold, 75 percent of respondents said they would add additional items to their cart to qualify for free shipping. You can leverage that in a smarter way, but you have to be cognizant of what the actual shipping costs are.

What do you see as the biggest challenge online AP&A retailers face, given the results of the survey?

This isn't really a challenge, it's an opportunity, but really leveraging the social media channel is something all retailers should take a look at, if they aren't already there.

The other challenge is that we all continue to demand more as consumers. As larger retailers offer two-day shipping, then most consumers are going to expect faster delivery. Retailers have to balance that consumer halo effect from what the larger retailers are doing.

Finally, there is more activity around the omni-channel experience, where customers want different outlets for returns and pick-ups. If I order online I may want to pick up at a store, or return it to the store. Having those capabilities is critical. If you are not a multi-channel retailer, then you should have processes in place to drive continued sales and repeat sales. If you don't have a physical store, then maybe you should be more flexible with your return policy.

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