‘Next day’ delivery overtakes ‘economy’ for first time

More online shoppers selected ‘next day’ delivery over those choosing the ‘economy’ option for the first time, according to the latest figures from the IMRG MetaPack UK Delivery Index.

In August, the index reveals that 36.7 percent of orders selected ‘next day’ delivery, while 33.8 percent opted for ‘economy’, marking the first time ‘next day’ had overtaken ‘economy’.

Andrew Starkey, head of e-logistics at IMRG, said: “We’ve been tracking a general increase in the percentage of ‘next day’ orders for a while now, and in August it became the most popular option domestically for the first time.

“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.”

Starkey added: “ 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.”

In more general terms, the index found that online retail order growth increased 18.2 percent year-on-year in August, as shopper confidence appears to show some resilience following the Brexit decision.

It noted that since the June 23 EU referendum, its has tracked an increase in the percentage of orders going cross-border, which they believe is most likely due to a sharp fall in the valuation of sterling. This continued to be the case in August, with 27.8 percent of UK orders going to international destinations.

Kees de Vos, chief product officer at MetaPack, added: “August is traditionally a slower month, so it is great to see delivery numbers swinging up again, and cumulative growth back on track. 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.”