L. Yltävä
Research expert
Everything is better when it is free. At least, that is what many online shoppers in the United Kingdom (UK) think. Complimentary shipping and returns are consumers’ main wishes for their web orders, a feat more and more retailers struggle to provide. In fact, only 17 percent of the leading retailers in the country offer free shipping, and the average return fee stands at 11.5 British pounds.
However, as Amazon continues to dominate the e-commerce landscape, Amazon Logistics is starting to take a larger share of the courier service market. Indeed, Amazon Logistic ranked as the second-highest revenue generating parcel service provider, accounting for about 15 percent of the total parcel market. Consumers reported less delivery problems with Amazon than with the Royal Mail, but none of them ranked as badly as Evri. Evri, or formerly known as Hermes, took the top spot as the most down voted parcel provider, with nearly half of UK consumers experiencing issues with the courier in 2023.
As the UK's e-commerce sector continues to grow, it is crucial that the 'last mile', the path that follows purchases from transportation hubs to their final destinations to consumers, remains seamless and economical. It is important for retailers to keep costs down for packages, as it is crucial for consumers to save money in these current times of financial hardship.
Best and worst shipping providers
Over the past decade, the surge in e-commerce has led to a threefold increase in the volume of the UK parcel market. The Royal Mail, founded over 500 years ago, remains the dominant player of the courier market. This domestic shipping provider accounts for almost a quarter of the parcel market in terms of revenue, compared to other leading companies. The Royal Mail is also the most popular shipping service provider among online retailers, favored by more than half of the e-stores in the country.However, as Amazon continues to dominate the e-commerce landscape, Amazon Logistics is starting to take a larger share of the courier service market. Indeed, Amazon Logistic ranked as the second-highest revenue generating parcel service provider, accounting for about 15 percent of the total parcel market. Consumers reported less delivery problems with Amazon than with the Royal Mail, but none of them ranked as badly as Evri. Evri, or formerly known as Hermes, took the top spot as the most down voted parcel provider, with nearly half of UK consumers experiencing issues with the courier in 2023.
The cost-of-living crisis makes returns more likely
Free and fast returns are the most valued return services online stores can offer. What might come as a surprise is how returns of online orders are directly linked to the current heightened cost-of-living in the UK. In 2023, nearly one-third of UK shoppers reported that they had returned an item as a direct consequence of the standard of living crisis. When receiving an online order, many people might rethink their purchases, and instead opt to save money and send back products.As the UK's e-commerce sector continues to grow, it is crucial that the 'last mile', the path that follows purchases from transportation hubs to their final destinations to consumers, remains seamless and economical. It is important for retailers to keep costs down for packages, as it is crucial for consumers to save money in these current times of financial hardship.
