Tuesday, March 01, 2005
Online Orders Boost Home-Delivery Sales
Online orders accounted for more than a quarter of sales in the fast-growing home delivery sector last year, according to research.
Retail analyst Verdict Research says home-delivery purchasing grew by 5.9 percent during 2004, ahead of the 4.2 percent increase in the UK retail sector as a whole. One pound in every seven is spent on goods delivered to the home. Some 27.4 percent of sales were online, ahead of TV shopping at 14.6 per cent and door-to-door business at 13 percent.
Implications for Retailers: the growth of home sales has implications for retailers and their suppliers providing the delivery service. Most retailers see the fulfillment operation as just another supplier service when they should be building them into their operations more strategically.
And, as shoppers become increasingly tech-savvy in their shopping methods, the report suggests they are also more demanding. The survey identifies a growing expectation for free delivery, but customers are likely to blame the retailer regardless of failures on the part of the third-party delivery service.
Growth Foreseen: Verdict expects the home delivery market to grow by a further 5.7 percent this year, compared with 3.9 percent total retail growth, and predicts the extra margin of growth will increase as consumers' shopping habits and greater underlying income evolve away from traditional shopping methods.
Patrick Wall, chief executive of delivery management software supplier Metapack says retailers need to gain as much control of delivery and dispatch management as they do developing online channels. "You need visibility at three different levels of the supply chain," he said. "The direct dispatch system, a Web-based browser dispatch and courier system that automatically generates purchase requests and confirmations, and a fully integrated stock management system at the other end."
More information at Guardian eCommerce.
Brought to you by the Guardian eCommerce Safe Site Privacy Seal Program.
Retail analyst Verdict Research says home-delivery purchasing grew by 5.9 percent during 2004, ahead of the 4.2 percent increase in the UK retail sector as a whole. One pound in every seven is spent on goods delivered to the home. Some 27.4 percent of sales were online, ahead of TV shopping at 14.6 per cent and door-to-door business at 13 percent.
Implications for Retailers: the growth of home sales has implications for retailers and their suppliers providing the delivery service. Most retailers see the fulfillment operation as just another supplier service when they should be building them into their operations more strategically.
And, as shoppers become increasingly tech-savvy in their shopping methods, the report suggests they are also more demanding. The survey identifies a growing expectation for free delivery, but customers are likely to blame the retailer regardless of failures on the part of the third-party delivery service.
Growth Foreseen: Verdict expects the home delivery market to grow by a further 5.7 percent this year, compared with 3.9 percent total retail growth, and predicts the extra margin of growth will increase as consumers' shopping habits and greater underlying income evolve away from traditional shopping methods.
Patrick Wall, chief executive of delivery management software supplier Metapack says retailers need to gain as much control of delivery and dispatch management as they do developing online channels. "You need visibility at three different levels of the supply chain," he said. "The direct dispatch system, a Web-based browser dispatch and courier system that automatically generates purchase requests and confirmations, and a fully integrated stock management system at the other end."
More information at Guardian eCommerce.
Brought to you by the Guardian eCommerce Safe Site Privacy Seal Program.
