New report reveals shifting consumer priorities in 2024 retail

The latest research from Linnworks, detailed in their State of Commerce Ops Report, offers critical insights into the dynamic retail environment faced by consumers and retailers in 2024. By drawing on data from over 2,000 consumers and 1,000 e-commerce retailers, the report reveals evolving consumer priorities and significant operational challenges that merchants must address to stay competitive.

Contrary to common assumptions, the report indicates that next-day delivery is no longer the predominant concern for consumers. Instead, customers now place higher value on pricing and transparency. This shift has led to a growing preference for marketplaces like Amazon and eBay, which are favoured by 51% of consumers for their extensive selections, competitive pricing, and convenience.

Key findings in the report highlight several critical areas for retailers. Significantly, shipping delays and item damage rank as the top consumer complaints, affecting 62% and 44% of shoppers, respectively. These issues underline retailers' importance in refining their logistics operations to improve customer satisfaction.

Additionally, consumer expectations have evolved to prioritise free shipping and hassle-free returns, with 52% of respondents identifying these as essential considerations in their purchasing decisions. This trend further emphasises the need for transparency and convenience in the retail sector.

The report underscores that 52% of retailers aim to expand into new markets and channels, indicating that growth remains a primary focus. Optimising performance in existing sales channels is crucial for scalability and diversification. However, connectivity challenges and managing delivery costs present significant operational hurdles. Over one-third of online retailers cite difficulties in connecting to new channels, pointing to the necessity for streamlined processes and technological solutions.

Despite a clear desire for operational efficiency, many retailers continue to depend on custom-built (42%) and manual integrations (46%) to link their operations to marketplaces. This reliance on outdated methods presents an opportunity for modernisation through advanced technology solutions that can simplify and streamline operations, enhancing overall business performance.

The insights from the State of Commerce Ops Report underscore the importance of connectivity in managing the various challenges and opportunities in today's retail landscape. With convenience and transparency becoming paramount and retailers striving to meet growing demands while scaling their operations, the integration of connected commerce operations is seen as the key to achieving stability and success.

Chris Timmer, CEO of Linnworks, commented, "In the retail landscape of 2024, connectivity isn't merely an option; it's the roadmap to retail success. Our report underscores that it's no longer enough for retailers to simply meet consumer demands; they must surpass them. By leveraging connected commerce operations, retailers can integrate every aspect of their business, from inventory management to customer service, setting a new standard for efficiency and customer satisfaction."