Is the ‘standard’ delivery option becoming redundant?

Is the ‘standard’ delivery option becoming redundant?
E-tailers are responding to a new wave of consumer needs,with 1/10 retailers now not even offering a standard delivery option

iForce, multichannel retail logistics specialist for some of the UK’s top retailers including Cath Kidston, John Lewis, Sainsbury’s and Tesco, has assessed a sample base of 74 of the UK’s best-known retailers, revealing some interesting retail delivery developments. Standard delivery appears to be a fading retail star with next day delivery or click and collect ruling the roost. The research indicates that there is a distinct decline in those offering a traditional standard delivery and those that do increasing the average fee for this service.

iForce’s research revealed: 

• 9% of UK e-tailers now do not even offer a standard delivery option. 
• Those that do still offer standard delivery are also increasing their charges, up £0.55 on each order to an average of £4.76. 
• In comparison, next day delivery charges are reducing by £0.22 to an average of £6.28. 
• 46% of e-tailers now offer the Click and Collect, rising from 36% since April 2012. 
• Of those 46% who offer Click and Collect, 9% now charge for this service, up from 4%. 
• Where free delivery over a certain threshold is offered the average order value is £141, up from £117 in April 2012. 
• 58% of retailers offer a post-3pm cut off for next day orders (up from 31%, April 2012), recognising a shift in consumer expectations.

iForce Director of Client Services, Geoff Taylor, said: “The rise of Click and Collect and customer convenience looks to be creating an interesting shift in the delivery phase of online retail. Our research shows that standard delivery is increasingly becoming outdated for the ‘Now or collect when I’m ready’ generation, fuelled by a reduction in next day delivery charges and the ascent of the click and collect.” Geoff added: “With nearly 1 in 10 retailers not even offering standard delivery, and average charges on the increase when they do, retailers seem to be responding to a new level of consumer expectation of access to their shopping; on their own terms. Perhaps standard just isn’t cutting the mustard for shoppers now and is becoming an out of date concept? It is interesting to note the effect that click and collect is having on consumers as they are realising they can have their cake, and eat it!”

November 1 2012

iForce
www.iforcegroup.com 
Twitter: @iforcegroup 
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iForce
www.iforcegroup.com
iForce is a multichannel specialist in retail logistics, offering end-to-end solutions to its clients’ business challenges. Founded in 1998, iForce has pioneered the development of traditional fulfilment skills, processes and technologies for the e-commerce world. iForce’s other services include strategic planning & consultancy for e-retailers, e-analysis, stock management, customer service and logistics. iForce has approximately 650 staff and over 1.2 million square feet of warehouse space in eight UK locations serving the UK and Continental Europe. Clients today include: Cath Kidston,, Fortnum and Mason, John Lewis Direct, VTech, Waitrose Wine and Sainsbury’s for e-fulfilment, Tesco, Screwfix and House of Fraser for Reverse Logistics and Greene King for ‘Point of Sale’ replenishment.

Over the last ten years, through its bespoke internally developed systems and the unrivalled experience of its staff, iForce has won and maintained contracts with some of the UK’s premium and biggest brands. By offering a full 360° service for e-fulfilment and return logistics, iForce helped to drive retail sales through online and, more recently, through click and collect services in store.