The United Kingdom (UK) is transitioning towards a more digital retail landscape, and with that comes an increase in deliveries and returns. In 2022, clothing and footwear were the items most ordered online compared to other retail segments, making clothing the most returned product category in the country that year.
Delivery companies of choice
As online retail grows, so does the need for efficient delivery companies. In 2022, the Royal Mail ranked as the public's favorite courier service. Founded over 500 years ago, the company still holds a strong market position and most recently generated around 4.8 billion British pounds in revenue through parcel deliveries.To remain competitive in the e-commerce market, other businesses have reassessed their strategies. In March 2022, Hermes, the German delivery company, rebranded as Evri in the UK, aiming to change the negative connotations associated with their name. To further improve its global market positioning, DPD followed suit and renamed itself Geopost. Other popular delivery companies in the UK are UPS and DHL.
What do consumers want from online deliveries?
Recent surveys show that consumers care about free deliveries of their online purchases. A 2023 study showed that only about one-fifth of the leading retailers offered free delivery. However, in order to further entice consumers, many retailers increased their free delivery thresholds, offering free delivery when customers spend beyond a certain amount.Returns are another issue of importance in online retailing. While being able to return their online purchases is a boon for consumers, for retailers it is the opposite, as returns are often costly. Similar to expectations from deliveries, returning orders free of charge was an important part of the online shopping experience. Typically, consumers preferred returning items at the post office, although other options, such as home pickup and the physical stores of the retailer, were among the preferred channels. Fitting issues were given as one of the main reasons for wanting to return purchases. However, it appears that many consumers have been taking advantage of the return policies by engaging in fraudulent behavior. For example, false reimbursement claims made up almost one-third of returns. More shockingly, about a quarter of online shoppers claimed they never got their orders.
