How KG Group improved their delivery experience

KG Group has built a highly successful marketplace business by consistently prioritising customer experience. And by removing the need for signature on delivery, it’s now even more convenient for customers to get over 20,000 products delivered to their door. Co-founder Doron Kushlin explains how.

Key points

  • KG Group prioritised delivery and customer service from day one, with great products delivered fast.
  • By changing their signature on delivery policy to enable ‘safe drop’, they have improved the rate of first time delivery for most products – with no increase in customer queries about ‘missing’ items.
  • First time delivery is a key driver of customer satisfaction, as measured by Australia Post Net Promoter Score (NPS) data.

Doron Kushlin and Nimrod Ganon started their business selling one product on eBay – a TV bracket. Just over a decade later, KG Group (formerly KG Electronic) sells more than 20,000 different products and is one of Australia’s largest pureplay marketplace retailers. By 2020, the business was turning over $30million.1

Doron credits continually expanding their network of marketplace partners as one of “our best business decisions,” because it enables the team to focus on what they do best. Sourcing great products, and fulfilling orders fast.

However, selling via marketplaces also means relinquishing some control over key customer touchpoints.

That’s why Doron has been quick to adapt changes he knows will improve customer experience – like removing the need for signature on delivery.

“From day one, we have always focused on quick despatch and delivery certainty,” says co-founder Doron Kushlin. “If people know they can trust you, and the product will arrive on time and safely, then they’ll be happy.”

‘Safe drop’ deliveries boost satisfaction

When KG Group’s customers buy the latest in-demand item from its extensive range, they can’t wait for it to arrive. The last thing they want is to miss the delivery, and get a card telling them they need to pick up their parcel from their local Post Office.

Australia Post data indicates the number one reason customers get ‘carded’ is because signature on delivery is required. What’s more, first time delivery is an important driver of Net Promoter Score (NPS).2

According to Australia Post’s new report, The Delivery Experience: Getting it right. Why it matters. And how data can help, just over 10 per cent of parcels that require a signature on delivery are carded – compared to just over 1% when a signature is not required. Yet in an Australia Post survey of over 2,000 people who received a parcel in February 2021, 69% said they preferred to have their parcels left in a ‘safe place’, rather than having to sign for them.3

That’s why removing the need for a signature on delivery is one of the simplest and most effective ways to improve customer satisfaction with delivery.

In 2019, Doron’s Australia Post Account Manager suggested KG Group implement ‘authority to leave’ for its customer orders, to improve first time delivery rates.

“We knew it would be a better customer experience, so we said OK, let’s do it,” explains Doron. “We’d seen how options like ‘safe drop’ had evolved. It’s more common now for parcels to be left in a safe place.”

KG Group no longer requires signature on delivery unless the order is over a certain value. That means most products can be left in a safe place without carding – from ever-popular wireless headphones to phone chargers. “It’s better for the customer, and we have had no increase in missing parcel queries. No issues at all. Authority to leave works well, I’m happy.”

In the past, KG Group’s marketplace partners and payment providers had recommended using signature on delivery to minimise the risk of refunds due to missing parcels. Yet Australia Post data also indicates that removing the need for signature has little-to-no impact on the number of customers chasing disputed deliveries or parcels lost in transit.2

“I would definitely recommend moving to authority to leave,” says Doron. “It’s the way to go.”

Continually improving delivery

Having delivered with Australia Post from that very first eBay sale, KG Group continues to proactively adopt and test new options to improve the delivery experience.

“We’ve added more Australia Post services, such as same day delivery if customers order by a certain time,” says Doron. “And because we’ve added more fragile products to the range, we’re trialling a new palleting system with Australia Post to make sure they’re despatched safely.”

Offering alternative collection points such as Parcel Lockers and local retailer collection points, are in the hands of the marketplaces – and KG Group will “tap into those options” where they can.

“We know greater choice, over when and where an item will be delivered, will be better for our customers in the long run. For example, some people may prefer to be able to pick up a more valuable item from a local store,” says Doron.

KG Group now ships over 1,000 orders a day from its Moorabbin warehouse in Victoria – around Australia and the world. And almost all orders come through its network of over seven marketplaces. This enables the team to focus on fulfilment: getting in early to make sure orders received before 2pm are picked, packed and despatched on the same day.

With plans to expand into more categories including grocery lines, KG Group has always stayed one step ahead of product trends. And Doron says having those must-have products, along with the best possible delivery experience, is what brings KG Group’s customers back again – and sustains the company’s phenomenal growth.

This article is provided for general information purposes only and is not intended to be specific advice for your business needs.

1 How two Melbourne mates turned their side hustle into a global electronics business, Eliot Hastie, News.com.au March 2020

2 The Delivery Experience: Getting it right. Why it matters. And how data can help, May 2021, Australia Post

3 Australia Post survey of over 2,000 people who received a domestic parcel in the month of February 2021, The Delivery Experience: Getting it right. Why it matters. And how data can help, May 2021, Australia Post