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NEWS
Royal Mail urges big retailers to opt for quality service
2015 will be the year for larger retailers to reflect on the importance of providing a quality service to customers according to Royal Mail’s CEO Moya Greene. Drawing attention to the collapse
of CityLink and service failure at Yodel, she is keen to ensure that retailers consider the stability and capacity of parcel delivery service providers before entering into contracts. Royal Mail delivered 120 million parcels in December which Greene says is more than the vast majority of other parcel carriers in
the UK market deliver across a whole year. Royal Mail has, of course, battled against increasing competition in the mail and parcels sector with particular emphasis on the alleged unfairness of it having to provide a universal postal service which guarantees a mail delivery service to all UK addresses at an equal price. Its competitors, of course, are free to compete heavily on price to deliver to highly populated areas, leaving Royal Mail to handle the uneconomic locations.
Chinese market reforms to benefit foreign ecommerce firms
Shanghai’s Free Trade Zone will now allow foreign investors to fully own eCommerce companies trading in the Chinese market. New legislation took effect on 14th January which takes away the need for foreign businesses to secure a local business partner at the cost of a 45 per cent stake in the Chinese operation. Tis will create new competition for
JD.com and Alibaba from overseas retailers. Tese arrangements may also be extended into Shanghai’s business district as well as three new trde zones in Fujian, Guangdong, and Tianjin.
Weekend deliveries
Tere is a huge appetite among consumers for weekend deliveries. Recent research undertaken by one delivery company showed that 59% of customers viewed Sunday as a convenient day to receive goods.* And it is not surprising. Full-time employees are restricted
in the time they have available to shop and receive deliveries. Te hectic schedules of the modern-day consumer means that shoppers are more reliant on being able to order and receive deliveries outside standard working hours and at times that are more convenient to them. With most people working Monday-Friday from 9am-5pm
there is usually nobody at home to receive large-ticket items, such as furniture or televisions, during the working week. It is not as though the delivery men can leave this type of item on a porch or with a friendly neighbour. Increasingly, customers expect online sales and deliveries to
match, in terms of standards and service, the experience of a brick- and-mortar retail store and expect a seven-day delivery option. It seems that more companies are responding to this consumer
trend by launching new Sunday delivery services. Tis year the Royal Mail and Amazon both announced that they would be introducing selected Sunday deliveries, citing “more choice and options” for customers. If a customer has the choice of a retailer with rigid Mon-Fri
delivery schedules and one that offers a Saturday and/or Sunday service which one would seem more attractive? Retailers that continue to respond to changing shopping trends by introducing weekend deliveries provide busy consumers with greater flexibility. For retailers, offering weekend deliveries can help spread the
delivery operation across seven days instead of five, helping to smooth out any peaks in demand and bottle-necks. Another important point for retailers is that offering extra
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offer significant benefits to retailers in terms of delivery speed and success. Traffic is much lighter at the weekend, with less congestion, which leads to improved scheduling and routing and so more accurate delivery times. Additionally, delivery costs can potentially be lower at
weekends because of reduced fuel consumption as a result of faster turnaround journeys. Environmentally, the case for weekend deliveries is sound with fewer emissions and a better air quality. With furniture sales making a strong come-back post recession,
thanks to a resurgent property market and strong buy-to-let activity, getting that competitive edge in order to capture a larger slice of the market is vital. Many SMEs and Internet-based retailers work around the
clock to provide their customers with exceptional levels of service. Offering weekend deliveries can help these retailers match their customers’ high expectations. Customers are increasingly demanding services that bring
minimum disruption to their working lives. Retailers need to continue meeting the demands of these changing, contemporary shopping trends – offering weekend deliveries and providing a 24/7 service could be key to that aim.
By invitation only these super networking evening events combine interesting conversation over a great dinner in a plush private room for a select group of senior client side business directors and marketers from retail, online & multichannel businesses. Co-hosted by Direct Commerce magazine and The Specialist Works you can expect an enjoyable evening in excellent company. If you haven’t received an invitation yet and would like to attend please call Jane Revell-Higgins on 01271 866112.
Numbers are limited. Other locations will be added as the year progresses – if you are interested in hearing more than please feel free to call.
win-win for retailers and consumers
weekend deliveries can also boost revenue. According to a report from Forrester Consulting** in September 2014, delivery options have a direct impact on key customer metrics. Cost and convenience (flexible delivery options) play a part in driving revenue through repeat purchase, increased basket size and increased customer lifetime value. Extending deliveries to six or even seven days a week also serves
as a major competitive edge for retailers as it provides a cleaner line to sell over weekends: it potentially allows the retailer to sell a product at lunchtime on Sunday for delivery on a Monday. Weekend deliveries, away from peak periods, potentially
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