When an Amazon truck pulls up and delivers your package, do you feel better about your purchase?
Many retailers contract with companies like UPS, FedEx, or DoorDash to handle delivery while other retailers like Amazon have invested billions of dollars to build their own fleet of trucks, planes, and even drones to ensure delivery goes smoothly for their customers.
Amazon delivered 5.9 billion packages to customers’ doorsteps in 2023 through its own delivery service, about two thirds of its packages delivered in the United States.
Recently, Professor Prasad Naik took a deep dive into how company-owned delivery affects customer satisfaction, trust, and sales. Professor Naik and his co-authors examined 10 years worth of data from JD.com, a massive online Chinese retailer.
They found that trust plays an integral role in how much customers buy, especially for things like groceries that can spoil quickly.
Read the full story from the ºÙºÙÊÓƵ School of Management here: