Did you know that 80% of online shoppers prefer to receive their purchases in a single package? In today’s fast-paced e-commerce world, consumers are increasingly making multiple purchases across different brands in a single day, triggering a flurry of deliveries. This shift in shopping behaviour is driving the need for a more streamlined approach to logistics. By consolidating orders, we’re not only simplifying the delivery process but also cutting costs and boosting sustainability, all while meeting the rising demand for convenience.
Understanding consumer behaviour
Today's consumers are increasingly shopping across multiple brands in a single transaction, especially on multi-brand platforms. Loyalty to a single brand is decreasing, with shoppers opting for convenience and variety instead. Our research in Germany, Austria and the Netherlands reveals that 82% of customers are interested in bundling their orders, driven largely by sustainability considerations. The ability to receive all their items in one package not only reduces environmental impact but also adds significant convenience.
Whether delivered to their home or a parcel locker, customers find it easier to manage one consolidated parcel, try on multiple items at once and return any unwanted pieces in the same box. Interestingly, most are willing to wait an additional 2–3 days for a bundled delivery, underscoring the value they place on this option.
Moreover, behavioural research suggests that the ease and convenience of online shopping can prompt additional purchases shortly after the initial order is placed, whether through a re-evaluation of their choices or a renewed shopping spree after decision fatigue has subsided. This shift in consumer behaviour makes order consolidation not only a strategic move for logistics but also a direct response to evolving shopper preferences.
For more insights on order consolidation, watch our episode of "Business Casual" with Dominik Bertram, VP of Fulfilment Core at Zalando.
The basics of order consolidation: Meeting consumer expectations
Order consolidation and order bundling are revolutionising logistics, particularly in response to evolving consumer preferences for convenience and sustainability. At Zalando and ZEOS, these practices are key to enhancing customer satisfaction and operational efficiency.
Order bundling refers to the practice of combining items from different brands into one package, which not only simplifies returns but also significantly reduces packaging waste. Order consolidation, on the other hand, involves gathering multiple orders from a single customer within a specific time frame and packing them into a single box. According to our data, a second purchase is typically triggered within a 40-minute window after the first, prompting our standard wait window of 2 hours to allow for additional orders to be bundled. During peak periods, such as Black Friday, this window can extend up to 6 hours to accommodate increased shopping activity.
Currently, these processes work seamlessly for both Wholesale and Partner items using Zalando Fulfilment Solutions, ensuring that customers receive a single, consolidated package. The vision for ZEOS involves extending this efficiency to multi-channel orders, maintaining the simplicity of one box – one parcel shipped and one return received. Whether it's multiple brands or multiple orders, the technical process remains straightforward and efficient, aiming to meet high customer expectations and reduce environmental impact.
Key benefits of order consolidation
By implementing order consolidation, businesses not only meet customer expectations but also contribute to global sustainability efforts, making it a win-win strategy for everyone involved. Here are three key advantages of sending just one box:
Significant cost savings: By sharing transport costs for both deliveries and returns with other brands, businesses can reduce logistics expenses by up to 20%. This is especially beneficial for sectors like fashion, where shipping costs make up a substantial part of overall expenses.
Environmental impact reduction: Order consolidation helps reduce the environmental footprint of e-commerce by potentially eliminating up to 100 million unnecessary parcels per year. This can save an estimated 60,000-70,000 tons of carbon emissions annually.
Reduced Packaging Waste: Consolidating orders into a single package cuts down on packaging waste, aligning with the growing consumer demand for sustainable practices.
How order consolidation works in our fulfilment centres
Order consolidation at Zalando leverages advanced predictive distribution algorithms and our proprietary warehouse management system, ZalOS, to streamline the fulfilment process. Our algorithms forecast demand within a two-week window for each article across our network of 12 fulfilment centres and 20 return centres, determining the optimal location for each item, whether new or returned.
By strategically positioning items in a single fulfilment centre, we minimise movements between warehouses and enable efficient bundling into a single package. Once the distribution is optimised, ZalOS ensures maximum efficiency in the complex storage system by tracking the exact location of each item and optimising pick paths for rapid order processing. This integrated approach enhances delivery speed, reduces costs and supports our sustainability goals by cutting down on packaging waste and carbon emissions.
So, what's not to love? With order consolidation, you're cutting costs, slashing emissions, and keeping your customers smiling with one neat, tidy package. Efficiency and sustainability wrapped up in one – now that's smart logistics.
