New research shows consumers ratcheted up their logistics expectations again during this holiday season, with over 20% of consumers saying they were banking on deliveries until midnight on Christmas Eve. As consumers ratchet up their clamor for these options, it comes as no surprise that retailers were doubling down on plans to expand their expedited shipping selections, with some even offering same-day delivery on orders placed December 24.
But there’s a cost in human terms. Embracing ultra-fast delivery in a time of immense supply chain stress may introduce substantial injury risk for fulfillment and delivery workers, if not mitigated with preventative measures, including new workplace safety technologies.
Risk Abounds This Holiday
Even 20 years ago, fast delivery windows and promises of “free two-day shipping” were not nearly as ubiquitous as they are today. Even if they were, workers would have been in a better position, as both climate and economic conditions were more favorable. Now, these workers face significantly worse-than-usual El Niño conditions across vast swaths of the country (introducing wet and wintery conditions to areas not usually accustomed to such severe storms) all while absorbing the impacts of below-average seasonal hiring.
These challenges would still be manageable, however, if not for a sizable change in buying behavior following the COVID pandemic. The shuttering of in-person retail options during the holiday shopping season encouraged consumers to shop online. Despite these restrictions being lifted, shoppers have not resumed their pre-pandemic habits. A recent Shopify study noted that nearly half of consumers plan to buy gifts online, further exacerbating the pressure on delivery workers. Without proportionately compensating for these compounding factors, a dangerous season awaits the remaining workforce.
Prioritizing Worker Well-Being
Although on-time deliveries will always be important, new data shows the safety of workers behind those deliveries is also front of mind for consumers, with 29% responding that they don’t feel companies are taking “good enough care” of their delivery drivers. Thus, keeping workers safe and maintaining positive business relationships is hardly a zero-sum endeavor. In fact, some consumers are already going the extra mile to make workers feel appreciated this holiday season, with 17% planning to leave out food or snacks for delivery drivers working late on Christmas Eve. Companies that take steps to protect workers, through augmented training programs, the adoption of new technologies, or even communicating transparently if unforeseen circumstances (like weather or traffic) delay shipments, can go a long way toward both protecting workers and servicing consumers.
Expanding Return Windows Could Help
Ensuring consumer satisfaction does not stop on Christmas, however. As early as December 26, millions of rejected gifts will be returned to warehouses across the country ahead of rapidly closing return windows. For some consumers, including 31% of whom expect one or more of their holiday shipments to be late (often based on personal experience), a tight return window can compound dissatisfaction around a late shipment. For retailers, the opportunity to mend these feelings begins with expanding the return window, which offers myriad benefits.
First, the idea is a winning prospect with consumers, with those who feel a 30-day return window is too short (47%) outweighing those who expect deliveries on Christmas Eve (20%). Equally compelling, however, are the benefits for last-mile delivery workers and retailers. With more time for returns to be processed, consumers may wait to return items until the new year, allowing shippers to briefly recover following the holiday rush. Retailers win too, with 62% more likely to purchase from a brand that offers a lenient return policy. For consumers and logistics pros alike, extended return windows could be the best gift of all this holiday season.
The Ripple Effect
For shippers and retailers attempting to navigate the logistics of another holiday shipping season, one final factor worth considering is the lengthy and costly consequences if worker safety is not prioritized. The average workplace injury costs $41,003 in direct costs alone, not including costs from stopped work, OSHA fines and penalties, incident reporting, legal fees, and the cost to replace and train a worker. This cost also doesn’t include any potential loss of morale or productivity from other affected employees. In the midst of returns season, arguably the second-biggest logistics peak of the year behind holiday deliveries, these losses are unacceptable.
Thus, while retailers and shippers may balk at the prospect of altering the functional (but hardly satisfactory) status quo, making concrete changes to protect workers will pay dividends in the long run.
Heather Chapman is head of ergonomics at Soter Analytics.