Only 22% of consumers trust Amazon to safely deliver packages compared to other shipping carriers including UPS, United States Postal Service (USPS), FedEx, and DHL, a Clutch report found.
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The coronavirus pandemic hit the retail industry hard, resulting in many brick and mortar companies filing for bankruptcy as consumers turn to online shopping. To practice social distancing measures and protect themselves from possible virus exposure, consumers are using e-commerce to purchase both essential goods and recreational items.
The Adobe Digital Economy Index report for May of 2020 found that e-commerce sales in that month alone surpassed that of the entire 2019 holiday shopping season, indicating just how important online retail has become.
This demand has made package safety more important than ever in the eyes of consumers, resulting in them being more selective about which online retailers they use. This uptick has also caused an increase in package theft, however, causing even more concern for customers, the report found.
Nearly one-third of people (29%) trust UPS more to deliver packages securely, which displays a customer loyalty to the long-standing shipping carrier, according to the report.
Founded in 1907, UPS is not unfamiliar with supply chain management. People place high trust in this brand for two key reasons: Its history of on-time delivery and its comprehensive package tracking system.
Reuters found that in April 2020, UPS home deliveries accounted for 70% of its shipments rather than the usual 50% before the pandemic, indicating the crisis has changed how the business operates, the report found.
Home deliveries are typically more expensive for UPS than business shipments because there are more frequent truck stops and they have to travel farther distances. UPS typically adds a peak delivery surcharge when there are sudden increases in shipments, which typically occur during holiday months, but the charge has been incurred because of the virus.
The additional surcharges, however, allow UPS to hire more people to deliver packages and maintain its supply chain during these high demand times, according to the report.
As for other delivery companies, some 27% of people said they trust USPS most, while only 22% said they trust Amazon. The least trusted brands were FedEx (20%) and DHL (2%), the report found.
This surge in e-commerce has also resulted in the rise of “porch pirates,” or thieves who steal packages from people’s front doorsteps, the report found.
Research from Security.org in May found that porch pirates have stolen packages from more than 25 million households in a span of 90 days during the pandemic. While carriers are attempting to keep up with deliveries on their own, porch pirates are making successful deliveries even more difficult.
To deter package theft, homeowners are installing security cameras, requiring a signature for packages, having packages delivered to the workplace or P.O. box, and subscribing to delivery alerts, the report found.
While Amazon wasn’t the most trusted delivery carrier, consumers did say that delivery to Amazon Lockers is another good option for deterring porch pirates, according to the report.
For more, check out How tech helps with the spike of online retail on TechRepublic.
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