UK: Shipping is caught striving to face the online shopping boom - report

Monday 29 September 2014 14:25 CET | News

The rapid development witnessed by UK online shopping is expected to generate over 1.35 billion deliveries by 2018 which leads to a 29% market increase.

It is also estimated that clothing, footwear, music and film are expected to lead the online shopping process, according to the Last Mile Report commissioned by Barclays bank with Barclay’s Retail and Transport & Logistics banking sector teams.

The projected 4-year growth will be attributed largely to the proliferation of smartphones and tablet devices, which will allow customers to choose from multiple delivery options.

The highest contributing factor to online ordered deliveries in 2013 was from the clothing and footwear category, as some 170 million deliveries were made, while film and music came a close second with 159 million, numbers that are expected to grow 51% and 54%, respectively.

Yet, the highest delivery expectations come from electrical goods, which may prompt retailers in the electrical category to start considering delivery and return deals, or to set up payment options whereby the customer can pay for the delivery when it arrives and if they’re satisfied. Electrical goods were at 65 million deliveries in 2013, a number that will more than double (61%) by 2018.

Barclays expects that the purchase of digital film and music will decline by around 40%, from 160 million to just 98 million, in part due to subscription-based services taking over. Devices like tablets and smartphones are the main drivers of this and customers are demanding Sunday delivery services and more progressive delivery options.

Presently, only 20% of customers use click-and-collect services and the report estimates that over 30% of retailers would use them by 2018. Additionally, 30% of retailers believe online sales have been detrimental to their business. East Anglia is expected to see the largest growth in deliveries from 97 million to 131 million, a 35% increase.

The findings revealed that in 2013 ecommerce activities generated over 1 billion deliveries, a number projected to jump by almost 30% in 2018.

The present report was conducted by the retail research agency Conlumino in August 2014 and sampled over 2,000 UK consumers and conducted interviews with around 50 retailers and logistical firms.

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Keywords: UK, shipping, online shopping, merchant, customer, increase, delivery, online payments, transactions , goods, supply
Categories: Payments & Commerce
Countries: World
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