Over a quarter of consumers plan to buy second hand or use online resale marketplaces more often in the year ahead. Interestingly, consumer perceptions around ‘second hand’ are also changing and retailers are responding to growing demand from consumers for economical and sustainable alternatives to buying brand new. When going green, 38% of consumers are more willing to accept longer delivery times and almost 35% of consumers are likely to switch to out of home collection, rather than paying extra to offset emissions, with only 7% of shippers willing to consider the latter. Sustainability continues to be top of mind for many shoppers, with 79% stating they would consider green delivery options when ordering online. Merchants who continue to invest and adapt in technology to suit the changing needs of their customers are the most likely to drive loyalty and do well." We believe omnichannel retail and delivery will become increasingly important as consumers switch between online and offline as they look for the best deals. That said, through difficult times, innovation often emerges the winner, and we expect the same to happen this year. As our research reflects, the economic backdrop is expected to have an impact on merchant operations and consumer buying behaviours. Mike Hayers, General Manager at ShipStation Europe says: "2023 is set to be a complex year for the ecommerce industry. Almost 30% of UK consumers reported they would happily switch to parcel lockers or click and collect (‘BOPIS’ – Buy Online Pick Up In Store) services for their online orders. Over a quarter of retail businesses plan to increase the cost of delivery for their customers, while only 18% say they won’t increase the price of products, delivery, or returns this year.Īs shoppers’ priorities shift towards value, our research shows that consumers would rather wait longer for delivery, or compromise on delivery location, rather than cost. That said, operating cost pressures facing businesses may make this a difficult challenge. Almost 35% of consumers highlight cost as their biggest priority when it comes to delivery, as speed and convenience become less important. The research reveals that in 2023, the cost of delivery is expected to be the most important conversion factor impacting retailers. From offering a greater choice of delivery options, having a resilient carrier infrastructure, to providing delightful deliveries experiences, we believe retailers who are able to provide the most value will be the ones who come out on top."ĭelivery priorities: cost over convenience As our research highlights, everybody will be looking to get the most bang for their buck from operating costs to delivery costs and product costs. Of those small enterprise retailers surveyed, 80% expect order volumes to be the same or higher (59%) in 2023, with a third anticipating order volumes to be 10% higher or more.Īndrew Norman, General Manager at Metapack: "Keeping costs down will be the top priority for both retailers and consumers in 2023. However, many retailers remain optimistic about trading prospects in 2023, with more businesses holding a positive rather than negative view regarding the economy, and only 20% anticipating weaker consumer demand over the year ahead.Ĭonsumer sentiment and economic projections are generally at odds with retailers’ expectations for the year ahead. Retail brands are facing rising input and operating costs and with margins under so much pressure, it’s likely that some of these costs are being passed on to consumers, especially as merchants look for ways to find savings and preserve margins. It found that 80% were planning to increase the price of products, with 40% suggesting rising costs will be the biggest challenge in 2023.Ĭost pressures and shifting shopping habits The Ecommerce Delivery Benchmark Report 2023, commissioned by Metapack’s and ShipStation’s operating company, Auctane, in partnership with economics consultancy, Retail Economics, included a survey of over 730 retail businesses across eight international markets 1. LONDON, February 08, 2023-( BUSINESS WIRE)-UK non-food retail sales values are expected to hit £249 billion in 2023, but the 2.6% increase, or additional £18.2 billion of spending on the previous year, will be driven by rising consumer prices. New research from Metapack, ShipStation and Retail Economics shows shoppers may have to pay more for less in 2023 as inflation adds £18.2 billion to UK non-food sales despite volumes decreasing by 4.9%
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