By Lee Gilmore, AWS Practice Lead, Leighton
Why retailers are losing customers after winning the sale.
New research from Leighton reveals how delivery issues, complicated returns and disconnected customer service are undermining retail loyalty and why fixing the foundations could be the key to closing the gap. In this article we explore some of the key findings from the new report and the implications for retailers.
Winning a customer’s business is only half the battle. For retailers, the real test begins once an order has been placed, where fulfilling a delivery promise requires a complex network of systems, processes, and infrastructure to work together to deliver the experience shoppers expect.
Despite rising customer expectations being well documented and understood, new research from Leighton suggests that many retailers are still falling short. “The Fulfilment Gap: Why Retailers Keep Losing the Sale After They’ve Already Won It”, is based on independent research with 1,000 UK consumers who have shopped online in the past 12 months and insights from a number of retail technology leaders.
The report highlights a significant disconnect between customer expectations and operational reality with nearly four in five online shoppers (79%) experiencing at least one fulfilment issue in the past year, demonstrating how frequently the post-purchase experience can fall short of the promise made at checkout.
Late deliveries remain a familiar frustration, affecting 37% of respondents. However, the research reveals that the problem is not simply about getting parcels to customers on time. Almost half (49%) identified poor or nonexistent communication as the most frustrating aspect of delivery problems, compared with 21% who cited repeated delays.
For retailers, the message is clear. When something goes wrong, keeping customers informed and resolving issues quickly can be just as important as preventing the problem in the first place.
Returns continue to be a significant challenge with 43% of shoppers having returned an online purchase in the past year, the process has become an integral part of the retail experience. Paying to return items frustrates 37% of respondents, while 31% highlight slow refunds. When asked what would most improve the experience, 48% pointed to faster refunds.
These frustrations often stem from operational complexity behind the scenes, where warehouse processes, inventory management, finance systems and customer service need to work together. When information is fragmented or processes rely on manual intervention, delays become harder to avoid, and customers are left chasing answers.
The commercial consequences extend well beyond a single transaction. The report found that 47% of consumers would be unlikely to buy from a retailer again after receiving damaged goods, while 41% identified poor customer service as a reason to take their business elsewhere. More than a quarter (28%) had cancelled an order following a poor purchasing experience.
Technology has a significant role to play in addressing these challenges, particularly as retailers explore artificial intelligence (AI). Almost half of respondents (49%) would feel comfortable using an AI-powered support assistant, provided it could securely access their order information and deliver meaningful answers.
However, automation alone is not the solution. AI can only be effective when supported by accurate, connected, and timely data. Without reliable information flowing between inventory, logistics, returns and customer service systems, retailers risk automating existing inefficiencies rather than improving the customer experience.
Ultimately, closing the fulfilment gap requires retailers to look beyond the digital shopfront and invest in the operational foundations that support the entire customer journey. Connected systems, accurate delivery promises, proactive communication and straightforward returns can help protect loyalty while improving efficiency.
As customer expectations continue to rise, the retailers that stand out will be those that deliver not just a compelling proposition at checkout, but a dependable experience from purchase to delivery and beyond.
To explore the findings in more detail, including expert perspectives, practical recommendations and real-world retail case studies, visit: www.leighton.com