Market Overview

Furniture Grabs A Seat At The E-Commerce Delivery Table

Share:
Furniture Grabs A Seat At The E-Commerce Delivery Table

Brian Grandolf (not his real name) frantically cleaned his new home office, making room for the desk he ordered online to arrive and complete the space. Having already started his new job, and currently working at his kitchen table, Grandolf couldn't wait to set up the desk.

When the last-mile delivery company truck pulled up streetside – three days after it was supposed to arrive – the driver quickly assessed the situation and realized that the pallet jack would never climb the three steps onto the porch, much less squeeze through the front door. Content that his job was done after unloading the pallet to the front lawn, the driver asked for a signature. Grandolf argued, "how was he supposed to lift the 200-pound box into the house by himself?"

The driver relented and assisted Grandolf in bringing the box into the home, where it was then noticed that the box, and part of the desk, was damaged. Noting such on the delivery receipt –  Grandolf was reluctant to reject the shipment after delays in receiving it – the task turned to working with the original shipper to make good on the damage.

In Grandolf's case, the shipper stood behind the product and quickly sent out a replacement part, but many Americans are not so lucky. With that online furniture purchase comes many risks, including damage and the possibility that the manufacturer is not as accommodating as the one who assisted Grandolf. Still, more Americans are turning to online buying for big-ticket purchase

Online furniture sales growing

Last year, U.S. e-commerce sales topped $605 billion, growing 15 percent from the year prior. Furniture and home furnishings are the fastest growing segment of e-commerce. According to eMarketer, U.S. e-commerce sales in this category were expected to hit $50.32 billion, a growth rate of 18 percent for 2018. In 2017, Amazon.com, Inc. (NASDAQ: AMZN) reported $4 billion in furniture sales, according to a One Click Retail study.

It is because of this continued growth that carriers are increasingly devoting resources to last-mile furniture delivery. Earlier this year, J.B. Hunt Transport Services Inc (NASDAQ: JBHT) acquired Cory 1st Choice Home Delivery, a New Jersey-based provider specializing in delivery of large and bulky items. The acquisition, just the third in company history, greatly enhanced  J.B. Hunt Final Mile's furniture delivery expertise, adding a great number of contract carriers to its base of available capacity and broadening its service offerings to meet consumer demand. Services include drop-off and white glove deliveries where drivers will enter a customer's home and, in many cases, even set up the item.

The reason companies like J.B. Hunt are expanding their last-mile delivery of furniture is the potential, noting that "large format home delivery" is a $13 billion market right now. Its Final Mile business made more than two million home deliveries in 2018. Adding a company like Cory only enhances that business.

"Consumers expect the right balance of service, speed, and price, so we're building our furniture delivery program to help customers meet that demand," Nick Hobbs, executive vice president and president of Dedicated Contract Services at J.B. Hunt, said. "The right experience can lead to a consumer, and possibly their friends, purchasing more merchandise from a particular vendor, ultimately generating more business for all of us."

Transparent ordering and delivery process

The key to successful last-mile delivery of large format items such as furniture is the ease and simplicity of the entire process, from the efficiency of scheduling delivery to the transparency of tracking the shipment. Grandolf only knew his desk would arrive within a three-day window. Thanks to Amazon, though, customers expect more visibility into their delivery.

This process starts with how the delivery provider presents itself. Are drivers uniformed? Are they properly trained to make the delivery, to assemble and install products if needed, and, most importantly, to treat the customer and their home with care and respect? Is the equipment clean and clearly labeled?

In terms of the delivery itself, does the delivery company provide track-and-trace capabilities? Does it offer value-added services such as deluxing and repair? Does it arrive when it says it will?

Grandolf's provider checked off very few of these boxes, and while the retailer ultimately made good on the sale by sending replacement parts, the entire experience soured him on ordering from that company again. Retailers need to be sure they work with companies that check these boxes, because for most customers, the only contact they see is the delivery person. A positive ordering experience can be ruined by a bad delivery experience, and in some cases, the customer may never return. Grandolf is a case-in-point.

Follow up should be standard practice

As with many larger delivery companies, most consumers will receive a follow-up survey after a delivery by J.B. Hunt Final Mile. This gives the provider an opportunity to atone for any missteps made in the process, correct concerns going forward, and be recognized for a job well done.

It's easy for retailers to go with the lowest-priced delivery provider, especially when free shipping is promised the consumer, but the lasting effects of a bad experience due to an unprepared delivery company will do more long-term harm than simply paying a slightly higher cost.

Last-mile delivery companies are now working to differentiate themselves based on service offerings. With millennials making up 37 percent of furniture shoppers, and increasingly shopping online, last-mile delivery is only going to increase.

The providers need to keep up.

Image sourced from Pixabay

Posted-In: delivery e-commerce Freight FreightwavesNews Retail Sales Markets General

 

Related Articles (AMZN + JBHT)

View Comments and Join the Discussion!

Weekly Freight Forecast- May 20, 2019

Can-Fite Abstract Selected For Liver Conference