The UK market for courier and express delivery hit £10.1 billion last year with Brits sending 2.8 billion packages. Representing a 10% increase of £1B. Some key take aways from this:
Same day & Next Day make up over 60% of this number – convenience is a key customer message – soon to be the default. Parcels within 24 hours as standard.
One in six (15%) users have had to wait a long time for a parcel to be delivered in the past six months, rising to 30% of those aged 16-24. Expectations of the new generation of shoppers are narrowing and need to be understood.
As a crude number, these delivery costs (not finite or total) represent a cost on balance sheet of approx. 12% of your #eCommerce balance sheet.
Watch for a consolidation of collection points and a move towards in store pick up in the coming years. The continuing M&A activity suggests this is so – Amazon purchase of Whole Food Company and Sainsburys/Argos are 2 cases in point. Not just a purchase in my opinion.
The needle needs to shift downwards. But it won't happen soon.