Out of stock “eroding customer loyalty”

With the UK facing repeated periods of lockdown for over a year, unavailable stock – either shuttered in closed stores or unavailable due to supply chain disruption – and delays to processing of online orders due to the explosion in demand for ecommerce, have negatively impacted customer experience and loyalty.

The latest research of over 2,000 UK shoppers by Onestock, the agile Order Management System (OMS) provider for omnichannel retail, has revealed that 82% of UK shoppers have experienced out-of-stocks – either online or in-store – during the pandemic, with unavailable inventory most commonly experienced online by UK shoppers (47%).

A fifth (20%) of consumers had bought a product online, only to then be sent an email from the retailer advising them it was out of stock, while a further quarter (23%) experienced delays due to stock shortages after they checked out online.

The report warns that it doesn’t just negatively impact customer experience, but it erodes customer loyalty. Almost three quarters (73%) would be less loyal or less likely to buy again from a retailer if they experienced product unavailability, while a further 59% said they would have less confidence to continue shopping with a retailer if they continually experienced out-of-stocks.

Analysis of over 359,000 SKUs across the UK’s leading retailers by OneStock’s Inventory Availability Index, shows that out-of-stocks have fallen by 8% since the end of lockdown in April, but unavailable inventory still makes up nearly a fifth (18%) of retailers’ ranging.

Romulus Grigoras, Founder and CEO at OneStock, commented: “With the accelerated and sustained demand for e-commerce, online competition has intensified. As such, retailers are investing more and more to bring shoppers to their sites, nurture them and serve them the right products in order to convert them, only to fall at the final hurdle if the item then isn’t in stock, costing not only that conversion but eroding long-term customer loyalty.

“By removing silos within the inventory pool, and unifying stock – whether it’s from the distribution centre, warehouse or store – so that it can be picked from any channel, retailers not only extend their available ranging, but can enhance customer convenience, improve conversions and increase customer lifetime value.”