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Insight: 'next day' delivery overtakes 'economy'

New figures have shown that the percentage of orders using ‘next day’ delivery as a fulfilment option has exceeded the 'economy' option for the first time.

GENERAL MERCHANDISE

Insight: 'next day' delivery overtakes 'economy'

According to the IMRG MetaPack UK Delivery Index, 36.7% of orders in August specified next day delivery compared to 33.8% for economy.

Andrew Starkey, head of e-logistics at IMRG, said: “There are a number of factors potentially influencing this – some retailers see delivery as a differentiator and are offering next day as standard, others offer it if the customer’s basket value is above a specific threshold and for others the charge for next day is smaller than it has been on average in previous years.

“A move toward faster delivery is not unexpected and, for carriers, it doesn’t represent a capacity issue during most of the year – but during peaks such as the Black Friday period, promotion of next day delivery should be handled more cautiously.”

The study also found that online retail order growth was up 18.2% year-on-year in August and that there has been an increase in the percentage of orders going cross-border since the EU referendum due to the sharp fall in the valuation of sterling. This continued to be the case in August, with 27.8% of UK orders going to international destinations.

Kees de Vos, chief product officer at MetaPack, said: “Despite our concerns about the effects of the European Referendum, overseas shoppers are taking advantage of the strength of Sterling which is boosting overseas deliveries with the added bonus that we are seeing a rise in order values from cross-border shopping.”

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