What was the Challenge?
Unsuitable Delivery Service
As Harvey Nichols were launching a new product (Fenty by Rihanna,) they realized because of its lower price point, they needed a more cost effective delivery method for shipping these type of items to their customers. They were previously using a premium next day delivery service for all parcel sizes. However, it soon became clear this wasn’t suitable:
“The size of the product lended itself to a letter rather than a parcel sized product.”
James Henry, Head of Multichannel Operations at Harvey Nichols.
“The next day delivery service was great as it was a flat rate no matter what size of parcel we send. But when you’re sending a mascara or a lipstick by itself, sending that on a next day parcel service is not optimal because you have to be in to sign it. This means some of our customers were missing these deliveries, causing them 2-3 day delays to receive their order.” he also added.
This also lead to increased costs:
“Because the average selling price of those items is fairly low and a high percentage of the actual total order value is delivery costs, it was starting to eat away at our profit margins, especially when you include subsidized deliveries.” James said.