Cross-border online retail demand remains high entering 2017
This start matched our growth forecast for 2017 (+11%), which would result in 1.3 billion parcels / 1.25 billion orders being sent by UK retailers through UK carrier networks for the year if maintained.
Post-Brexit – and the subsequent devaluation of the pound – we have seen a general increase in the percentage of parcels going cross-border. This continued in January, with 32% going to other markets – a big uplift on 25% last January.
There has also been a shift in where these orders are going. In August 2016, for the first time we recorded a higher percentage going to non-EU destinations. This remained the case until November, but in December the percentage going to EU destinations jumped up to 56%. This grew even higher in January 2017, reaching 59%.
Andrew Starkey, head of e-logistics, IMRG: “The UK has long been a retail destination for overseas shoppers but, following Brexit and the sharp drop in sterling’s value, it has become a ‘value for money’ retail destination. Over the past 12 months, the average percentage of orders going cross-border from Index retailers is almost 27%. Orders going to non-EU destinations rose sharply in the months after Brexit, probably driven by US demand as the dollar gained most against the pound during that period. However, EU destinations are now accounting for the biggest share again with a similar rise in average order values.”
Chris Hoskin, Head of Marketing at MetaPack: “Clearly customers outside the UK are very sensitive to the fluctuations in price and the value they perceive they are getting as a result. The findings in the Index highlight that during Brexit negotiations, UK retailers can be certain that their overseas customers will be keeping a very close eye on how they can benefit from changes in the value of the pound and this will offer them opportunities in the coming months.”
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Notes
About the IMRG MetaPack UK Delivery Index
The IMRG MetaPack UK Delivery Index has been designed to enable the e-retail industry to track a wide range of key benchmark metrics to enable organisations to benchmark performance, track trends and inform strategic decisions.
The information presented is aggregated from a consistent sample of MetaPack's extensive dataset so all retailers, carriers and other suppliers remain completely anonymous. While it is not possible to confirm whether the data is entirely representative of all retail sectors, by covering in excess of 200 retailers and an average of more than 5 million orders in any one month, we consider it to be a valid and highly reliable source.
About IMRG
For over 20 years, IMRG (Interactive Media in Retail Group) has been the voice of e-retail in the UK. We are a membership community comprising businesses of all sizes – multichannel and pureplay, SME and multinational, and solution providers to industry.
We support our members through a range of activities – including market tracking and insight, benchmarking and best practice sharing. Our indexes provide in-depth intelligence on online sales, mobile sales, delivery trends and over 40 additional KPIs.
Our goal is to ensure our members have the information and resources they need to succeed in rapidly-evolving markets – both domestically and internationally.
About MetaPack
Founded in 1999, the MetaPack Group provides eCommerce and multi-channel delivery technology to leading retailers. MetaPack's highly configurable platform looks after the customer delivery experience generating consumer trust and loyalty. The software connects shippers with parcel carriers, as well as a wide range of alternative delivery, collection and returns services. For more information, visit www.metapack.com
Press enquiries:
Tel: 020 3696 0980
Email: andy.mulcahy@imrg.org
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