Managing in Crisis: E-Commerce & COVID-19 in the UK
Despite the recent pandemic, e-commerce in the UK is expected to grow 10.96% compared to the same time last year, reaching €222.5 billion in value. Although positive, the predicted growth is set to be the smallest growth since 2016, when e-commerce value increased by only 4.47%.
The UK is one of the most digitised markets in Europe, boasting the largest B2C e-commerce market on the continent with 87% of online users purchasing something online last year.
Overall, the most popular purchases year-round were clothes (60%) and household items (49%), with Amazon as the preferred online platform for apparel purchases. The data has also revealed that electronics and IT products have seen a 28% increase in order volume over recent weeks, amongst other industries such as DIY goods, toys and sports equipment.
The Growth of Online Retail
As uncertainty caused by COVID-19 continues to influence markets, both retail and pure e-commerce have showcased steady growth compared to last year. The latest figures reveal that online retail has increased by 50% compared to the same period last year, while e-commerce has grown by 58% during that time.
As more customers are turning to online channels to replace the inaccessibility of physical stores, businesses must shift the focus on supporting digital networks and implementing the correct fulfilment processes to ensure that a bigger volume of products can be delivered to customers without affecting delivery times.
Changes in Fulfilment Practises
Despite an increase in orders, online retailers in the UK have been delivering parcels almost 20% faster than usual times. The average delivery time has been reduced from 2.1 to 1.7 days throughout the past few weeks to keep up with the increased demands.
However, available data shows that 60% of retailers use carriers, such as Royal Mail, Hermes, DHL, DPD and others to fulfil deliveries. As the demand from customers increases, it can become increasingly difficult for carriers to support each seller’s requirements. 69% of UK retailers have shared that they are struggling to manage customer service queries to the desired levels. This means that challenges such as international delivery returns and launching new products be more unpredictable.
Even Amazon has been unable to continue supporting the operations of all sellers, suspending non-essential items from FBA, which has forced many sellers to seek alternatives through FBM.
Planning for the Future
While restrictions and changes to fulfilment are not expected to last much longer, there is no set date which is leading to uncertainty with many sellers that rely on marketplaces and retail channels to achieve sales.
Sellers and retailers online should use this as an opportunity to establish an infrastructure that provides flexibility and greater control over the fulfilment process. Here at Activ8, we specialise in providing tailored solutions to support all e-commerce operations, helping you thrive even in difficult times. Contact us today to find out more about how we can help.