Out-of-stock issues continue to be a persistent problem for retailers, posing a significant threat to customer loyalty. While there has been a decrease in the frequency of stockouts in recent times, the unavailability of desired products still remains an issue. In fact, according to a study conducted by OneStock, out-of-stock occurrences have decreased by 8% since the lifting of lockdown restrictions in April, but 18% of retailers’ product ranges are still unavailable.
This problem not only affects sales in the short term but also has the potential to alienate consumers and drive them to competitors. The study surveyed over 2,000 UK consumers and found that 82% of them had encountered situations where the product they desired was out of stock over the past year. The causes of these stockouts include items being trapped in closed physical stores, disruptions in the supply chain, and delays in processing online orders due to high demand.
One especially frustrating scenario for customers is when they place an order through a webstore, only to later receive an email stating that the item is out of stock. This happened to 20% of respondents during the pandemic. Additionally, 23% experienced delays in receiving their orders due to stock shortages after completing the online checkout process.
The study also revealed that encountering out-of-stock situations greatly impacts customer loyalty. A staggering 73% of shoppers stated that they would be less loyal to a retailer if they faced such situations. Furthermore, 59% mentioned that their confidence in continuing to shop with a retailer would be significantly diminished if they consistently encountered stockouts. It is evident that the negative impact of these incidents extends beyond the immediate loss of potential sales and can undermine long-term customer loyalty.
Romulus Grigoras, CEO of OneStock, emphasized the heightened competition in the online retail landscape and how failing to fulfill orders due to stock unavailability can result in lost conversions and diminished customer loyalty over time.
To address this issue and maintain customer loyalty while maximizing sales potential, it is crucial for retailers to implement effective inventory management strategies, optimize supply chain processes, and leverage technology solutions. By ensuring that the right products are available when customers are ready to make a purchase, retailers can enhance the overall shopping experience and foster long-term customer relationships.
Useful links:
– Out-of-Stocks Costing Retailers $1T in Sales
– Out of Stock and Still Not So Fast: Out-of-Stock Situations Diminish Customer Loyalty
