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36% of UK retailers set to miss out on growth in online sales fuelled by consumer demand for reliable and fast delivery
London, 1 July 2014: Research revealed today indicates that a significant percentage of UK retailers is set to miss out on expected growth in online sales by failing to offer the basics in terms of delivery and returns. Ampersand Commerce conducted research into the delivery offerings of the top 100 UK online retailers in May 2014 and found that one in three (36%) is failing to offer its customers next day delivery. In comparison, an online YouGov survey of GB consumers shows that 46% favour this method over any other. Furthermore, one in five (22%) online retailers does not offer free returns, one of the basic customer service requirements in a multichannel retail environment.
Whilst ‘click and collect’ is the latest retailer investment in the multichannel retail industry, the research indicates that UK online retailers should focus on providing or optimising their next day delivery service before focusing on click and collect or same day. 46% of GB adults online stated that if these three options were available they would most prefer to use next day delivery with 21% choosing same day and 18% going for click and collect. Recent Ecommerce Statistics from Econsultancy support this trend by citing that the UK is the third highest in Europe for customer dissatisfaction based on flexibility to choose delivery dates and times.*
Darryl Adie, Managing Director at Ampersand Commerce, said: “How online retailers optimise their delivery service will become a key differentiator in the next 12 months. Market leaders are already changing the definition of what next day means by offering later and later cut off times. The consumer demand and expectation for same day delivery is coming and online retailers who streamline their next day delivery now will be best placed to compete in that space.”
Other findings include:
- 44% of GB consumers would not be prepared to pay any extra for next day delivery and 42% said if pushed, they would only pay up to £5
- 49% of GB consumers have tried click and collect - one in four of respondents being over 55. Those least likely to choose click and collect as their preferred delivery method were aged between 18 and 24 years old with just 9% choosing this as their preferred method of out of the three.
- Fashion (24%) and electrical goods (25%) were the most popular items to be ordered by click and collect with GB consumers online
- 60% of online retailers offer click and collect
- 64% of online retailers offer next day delivery
- 11% of online retailers offer same day delivery
- 91% of GB adults have had goods delivered to their home
- Almost half (43%) of those surveyed currently shop online once a month
To view the full report, go to http://amp.co/cNwdQ
About Ampersand Commerce
Ampersand Commerce is an ecommerce agency that helps major retailers build better online stores using open source technology. Founded in 2009 and based in Manchester, Ampersand Commerce has helped international multichannel retailers, such as Harvey Nichols, increase conversion and efficiency through the strategic use of open source technology.
amp.co / @AmpersandHQ
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,362 adults. Fieldwork was undertaken between 6th - 7th May 2014. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
Ampersand Commerce analysed the web sites of the Top 100 online retailers according to IMRG.
*Econsultancy Ecommerce Statistics Compendium, March 2014
Published on: 10:57AM on 2nd July 2014