Third of Shoppers to Choose Gifts Based on Shipping Time: Supplyframe
Some 35% of U.S. consumers have experienced order delays in the past year for products that rely on electronics, reported Supplyframe Tuesday. Half of the October Supplyframe survey group of 1,000 U.S. consumers 18 and older who have had problems…
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
with product inventory said they involved consumer electronics purchases. Still, 55% plan to gift electronics including computers, smartphones and tablets during the holidays. This holiday season will create “enormous new pressures on the supply chain as it struggles to claw out of the shortage situation” arising from the COVID-19 pandemic, said Supplyframe CEO Steve Flagg. A third of survey respondents said they're more likely to choose the product with the quickest shipping, even if it’s not their first choice. The short supply of electronic components and semiconductors -- and, thus, autos and CE devices -- could mean far fewer retail discounts on vehicles and electronics, said Supplyframe. “This will also create huge pressure on supply chains to better manage constraints as consumer demand remains strong,” said Flagg. Over half of respondents in the poll said they understood the delays but were frustrated they were happening, said the report. Twenty-two percent said they were comfortable waiting two weeks for purchases to be delivered; just 10% said they were willing to wait longer than two weeks for shipping, despite the well-documented supply chain issues. About 90% said timing will be very or somewhat important as they make holiday gift purchases; 62% said longer shipping times haven’t deterred them from buying a product this year. Consumers aren’t optimistic that the supply chain shortages will resolve near term, with 47% seeing them lasting through 2022. Supplyframe data shows shortages extending into first-half 2023. Manufacturers need to transform their supply chain strategies using data intelligence, it said.