Why H-E-B, Publix, Aldi Are Leading in E-Commerce

Global research firm Ipsos’ recently released E-Commerce Experience Report demonstrates how grocers and the food and beverage industry continue to make waves in online order fulfillment and which brands emerge as the frontrunners.

Earlier in the pandemic, 78% of Americans increased their use of buy online, pickup in-store and curbside shopping, Ipsos finds. As the pandemic subsides, 69% of those surveyed said they expect to continue using e-commerce options at the same levels, if not higher. While studies also show in-store shopping isn’t going away, the increased importance of digital underscores the need to attract and retain shoppers in this channel.

“As we continue to see the adoption and usage of digital offerings rise, it is critical for brands to ensure a seamless and safe end-to-end e-commerce experience to keep customers coming back,” said Carlos Aragon, VP of Ipsos channel performance. “Knowing which brands are leading the pack—and more importantly, why—is critical to succeeding in the e-commerce economy.”

Which Grocers Are Leading in E-Commerce?

Ipsos’ recent survey of 2,000 American consumers, its third such survey in the past 11 months, finds that H-E-B is the No. 1 highest ranked grocery store for e-commerce. Consumers gave the San Antonio-based grocer high marks for great in-stock availability, ability to schedule pickup times and good instructions on order pickup. “H-E-B ensures perfect order accuracy with no fees or minimums, and very high satisfaction with communication,” Ipsos said.

Publix came in second due to its ease of ordering and superb communication, found Ipsos. The Lakeland, Fla.-based grocer benefits from order accuracy and excellent contactless handoffs to customers.

With good in-stock availability and flexibility in time of pickup, as well as very high order accuracy and overall satisfaction, German-based Aldi rounded out the top three.

The Ipsos survey of 2,000 shoppers also considered data from its 100 mystery shops per brand to measure how well major brands across the U.S. are performing on five key performance indicators including:

The good news? “All grocery stores with curbside pickup and delivery have figured it out,” Aragon told WGB. “No one is really performing poorly in grocery. The difference is between doing a good job and doing a ridiculously good job.”

Commonalities among the top e-commerce grocery performers include fewer out-of-stocks and substitutions; speed of delivery and order fulfillment/the ability to schedule pickup times; and strong communication with the customer, Aragon said.

The importance of communication and other key factors can also be seen in the bottom performers in the Ipsos report. “The bottom performers are the inverse of the top,” Aragon said. Poor communication, out-of-stocks, and a wait on timeslots all impacted grocers’ e-commerce experience rankings.

Clear Communication

Lack of clarity around how, when and especially where to pick up an order, was one of the most frequent complaints among survey respondents. Retailers should be conscientious about providing clear, concise instructions for pickups and making sure staff follow them, Ipsos said. 

While Aragon said some retailers wrestle with how much is the right amount of communication, he said not to worry. “I’m not sure that retailers can overcommunicate,” he said. “Amazon sends me 15 messages when I buy something from them, and I think that’s great. I know where my order is every step of the way.”

Scheduled Success

Ability to schedule timeslots is also key, the Ipsos survey found. Its latest rankings represent a slight change from its two previous consumer surveys. Publix wasn’t in the top three in Ipsos’ August/September survey. Conversely, Target slipped a bit in the rankings.

“Grocers that allow you to select a specific timeslot are doing well, whereas Target tells you when your order is ready,” Aragon said. And while Target is still a strong performer, regional grocery is doing a better job with order scheduling than many bigger retailers and the difference is pushing up these regionals in the rankings, he added.

Ipsos’ survey also finds that many shoppers have come to expect free delivery and curbside pickup. Grocers that deliver on this score will continue to attract customers.

Out-of-Stocks

While early in the pandemic, many grocers were “getting killed on out of stocks,” Aragon sees many grocers are continuing to experience inventory issues. Rampant out-of-stocks and substitutions that don’t meet customer expectations can cost grocers online shoppers.

“Home Depot and Lowes, which were not part of this study, are really doing it right,” Aragon said. “You can go to their websites and see exactly how many more of something they have and where to get it. Grocery is binary—either something is in or out-of-stock.”

In grocery, shoppers may place an order for something that was on the shelf at the time their order was placed, and then out of stock by the time their order is filled. This is a major frustration for online grocery shoppers, Aragon said.

“Amazon lets you see how many items are left. Shoppers want to know why Kroger and Sprouts can’t do that too,” he said. Is that reasonable? “Probably not, but shoppers want it anyway.”

Ease of Ordering

The initial experience of ordering via mobile app or online platform needs to be seamless and intuitive, said Ipsos. Ordering portals that were easy to navigate led to higher scores; platforms that weren’t user-friendly raised complaints almost without exception.

However, progress is being made. Asked if ordering groceries online is easier, more difficult or equally easy as shopping in-store, 55% of consumers said it’s easier compared to 50% who said so a year ago, according to the latest survey from Ipsos.

Aragon sees ease of ordering and reordering as major factors in the success of Amazon and Walmart.com. In grocery, shoppers are generally ordering the same thing every one to two weeks. The convenience of saved logins on Amazon and Walmart.com make it quick and efficient to repeatedly reorder from the same retailer.

Ipsos will explore the results of its E-Commerce Experience Report during a free webinar on July 22.