Online shopping to grow by a third by 2018
A new report by Barclays shows the importance of boosting your online retail presence
Print29 September 2014
Online shopping is expected to increase by almost a third (29%) in the next four years, with clothing and footwear to make up the highest proportion of online deliveries, according to a new report by Barclays entitled ‘The Last Mile’.
The study revealed books will be overtaken by food as the product with the third highest volume of online deliveries in 2018 as grocers continue to introduce more convenient and flexible delivery options. Health and beauty will also grow by 48% and account for the fifth most online deliveries in four years’ time.
The report also highlighted some interesting findings on delivery methods. Nearly 30% of retailers said that click and collect was their preferred delivery method, however this did not match with consumers who ranked it as fourth in terms of preference.
What’s more, 70% of consumers surveyed said they are looking for innovative and rapid delivery options such as Sunday delivery, but one in five said that having to rearrange a delivery was the most common problem they experienced when having online goods delivered. Two thirds (67%) of retailers said that the biggest issue with online fulfilment is coping with peak times such as Christmas.
At present, packages and small parcels make up almost 60% of online deliveries, however large package deliveries are set to increase by over 40% in the next four years. The report showed browsing and purchasing activity by consumers peaks between 10pm and midnight.
According to Barclays’ head of Retail and Wholesale, Richard Lowe: “Not only is the online purchasing and delivery market growing, it is also having to evolve quicker and more radically than previously. Driven by the increasing use of tablet and mobile devices, almost seven in ten consumers say they are looking for more innovative and rapid delivery options such as Sunday delivery. Although they seek more flexibility in delivery options, consumers are still very conscious of keeping prices low with cost influencing consumers’ preference more than any other factor including quality of service.
“Already, retailers are starting to introduce more convenient and flexible delivery services such as non-store based click and collect pick up points. However, with the online sales momentum set to continue, our research shows that it is more important than ever for retailers to reassess their online strategy and boost investment in the online fulfilment process to maximise the benefits of this growing market place.”
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