The growth of next day deliveries in the UK
The latest data from IMRG and MetaPack reveals that the typical delivery timeframe appears to be shrinking – as next-day delivery services are accounting for a greater share of online orders.
Looking at 2016 as a whole, next-day was selected as the delivery option for 31% of online retail orders, up from 26.8% in 2015. Over the same period, the share of orders using economy services fell from 45.5% in 2015 to 38.9% in 2016.
The latest data has also tracked a notable shift in when the bulk of Christmas peak deliveries fall. In 2014 the monthly growth in order volumes between November and December was +27.7%; in 2015 it was +14.3% but in 2016 it was just +4.5%. This is largely explained by Black Friday falling earlier in 2016 (25 November), whereas it was 28 November in 2014 and 27 November in 2015, and the fact that with previous years’ experience retailers have been extending this pre-Christmas sales period even earlier into November. In 2014 and 2015 although the orders were taken late in November, many of them would actually have been fulfilled in early December.
A consequence of higher volumes in November is an impact on the level of on time delivery over the peak period with a three-year low for November (91.4% followed by a three-year high for December (91.5%).
Andrew Starkey, head of e-logistics, IMRG: “It’s not hard to see why delivery times are speeding up, as many retailers feature their next-day offer prominently at the top of their homepage in order to attract and keep customers. With delivery service so important to shoppers retailers must look at all aspects to keep ahead of their competition and customer’s expectations.”
Chris Hoskin, Head of Marketing at MetaPack: “Next day delivery has become the new norm for customers in the UK – who increasingly regard it as a standard rather than premium service. This is commercially challenging for many retailers who have invested heavily in securing and maintaining their online customer base. They now, more than ever before, have to balance the costs and operational implications of managing a reliable next day service with meeting customer demands.”
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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
