Details
| Original language | English |
|---|---|
| Pages (from-to) | 497-525 |
| Number of pages | 29 |
| Journal | International Journal of Electronic Commerce |
| Volume | 26 |
| Issue number | 4 |
| Early online date | 27 Nov 2022 |
| Publication status | Published - 2022 |
Abstract
Online retailers assume that customers expect speedy delivery. To ensure that customers receive at least part of the order sooner, they often split deliveries into smaller quantities, spread out over different dates. Yet split deliveries may increase customers’ hassle costs, such that they have to receive multiple deliveries, as well as their perceptions of environmental harms due to more packaging and transportation. Three experiments and a field study test how delivery speed and split (vs. consolidated) deliveries affect key customer outcomes. In the case of split deliveries, faster delivery does not affect customers’ order completion, satisfaction, and word of mouth (Study 1); only when the deliveries are consolidated does faster delivery enhance them, and then only partially. Split deliveries also negatively affect the three outcomes more powerfully when the deliveries are fast (vs. slow) (Study 2). Study 3 reveals that the effects are mediated by perceived hassle costs and environmental impacts. Study 4, using apparel sales transaction data from a U.S. online retailer, shows that split (vs. consolidated) deliveries decrease the number of repeat purchases. These results carry important theoretical implications, as they show that delivery speed matters only under certain conditions and that rather the delivery mode (split vs. consolidated) may be a key unexplored factor associated with customer hassle costs and environmental concerns. The results are practically relevant because they suggest that retailers should not split deliveries to increase delivery speed; instead, shipments of multi-item orders should be consolidated to make receiving them hassle-free with environmentally friendly delivery in order to achieve positive customer outcomes.
Keywords
- delivery speed, E-commerce delivery, e-commerce logistics, environmental impact, hassle costs, online orders, online retailing, split deliveries
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- Business and International Management
- Economics, Econometrics and Finance(all)
- Economics and Econometrics
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In: International Journal of Electronic Commerce, Vol. 26, No. 4, 2022, p. 497-525.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - When Faster Online Delivery Backfires
T2 - Examining the Negative Consequences of Split Deliveries
AU - Brylla, Daniel
AU - Walsh, Gianfranco
PY - 2022
Y1 - 2022
N2 - Online retailers assume that customers expect speedy delivery. To ensure that customers receive at least part of the order sooner, they often split deliveries into smaller quantities, spread out over different dates. Yet split deliveries may increase customers’ hassle costs, such that they have to receive multiple deliveries, as well as their perceptions of environmental harms due to more packaging and transportation. Three experiments and a field study test how delivery speed and split (vs. consolidated) deliveries affect key customer outcomes. In the case of split deliveries, faster delivery does not affect customers’ order completion, satisfaction, and word of mouth (Study 1); only when the deliveries are consolidated does faster delivery enhance them, and then only partially. Split deliveries also negatively affect the three outcomes more powerfully when the deliveries are fast (vs. slow) (Study 2). Study 3 reveals that the effects are mediated by perceived hassle costs and environmental impacts. Study 4, using apparel sales transaction data from a U.S. online retailer, shows that split (vs. consolidated) deliveries decrease the number of repeat purchases. These results carry important theoretical implications, as they show that delivery speed matters only under certain conditions and that rather the delivery mode (split vs. consolidated) may be a key unexplored factor associated with customer hassle costs and environmental concerns. The results are practically relevant because they suggest that retailers should not split deliveries to increase delivery speed; instead, shipments of multi-item orders should be consolidated to make receiving them hassle-free with environmentally friendly delivery in order to achieve positive customer outcomes.
AB - Online retailers assume that customers expect speedy delivery. To ensure that customers receive at least part of the order sooner, they often split deliveries into smaller quantities, spread out over different dates. Yet split deliveries may increase customers’ hassle costs, such that they have to receive multiple deliveries, as well as their perceptions of environmental harms due to more packaging and transportation. Three experiments and a field study test how delivery speed and split (vs. consolidated) deliveries affect key customer outcomes. In the case of split deliveries, faster delivery does not affect customers’ order completion, satisfaction, and word of mouth (Study 1); only when the deliveries are consolidated does faster delivery enhance them, and then only partially. Split deliveries also negatively affect the three outcomes more powerfully when the deliveries are fast (vs. slow) (Study 2). Study 3 reveals that the effects are mediated by perceived hassle costs and environmental impacts. Study 4, using apparel sales transaction data from a U.S. online retailer, shows that split (vs. consolidated) deliveries decrease the number of repeat purchases. These results carry important theoretical implications, as they show that delivery speed matters only under certain conditions and that rather the delivery mode (split vs. consolidated) may be a key unexplored factor associated with customer hassle costs and environmental concerns. The results are practically relevant because they suggest that retailers should not split deliveries to increase delivery speed; instead, shipments of multi-item orders should be consolidated to make receiving them hassle-free with environmentally friendly delivery in order to achieve positive customer outcomes.
KW - delivery speed
KW - E-commerce delivery
KW - e-commerce logistics
KW - environmental impact
KW - hassle costs
KW - online orders
KW - online retailing
KW - split deliveries
UR - http://www.scopus.com/inward/record.url?scp=85142891444&partnerID=8YFLogxK
U2 - 10.1080/10864415.2022.2123647
DO - 10.1080/10864415.2022.2123647
M3 - Article
AN - SCOPUS:85142891444
VL - 26
SP - 497
EP - 525
JO - International Journal of Electronic Commerce
JF - International Journal of Electronic Commerce
SN - 1086-4415
IS - 4
ER -