The value of orders collected by consumers hit an estimated £22.6 billion in 2023, accounting for approximately 18.4% of all online sales. With the usage of collection services continuing to grow, aided by strong appeal to those with busy schedules, investment into collection continues to grow, with lockers a current focus area for many retailers.
A significant challenge for retailers, particularly in the fashion sector, is managing returns, with more retailers looking to implement returns fees. While these fees help cover retailers’ costs, the introduction has not been well received by all shoppers. The primary reasons for returning online purchases revolve around the sizing and quality of items, and retailers should look to ease the underlying friction in these areas as a solution to returns issues.
Innovations such as AI-powered virtual fitting rooms can help customers find the right size, thereby reducing return rates. Additionally, new delivery methods, such as Amazon’s testing of drones and B&Q’s trial of autonomous delivery, promise a faster and more convenient service. These advancements will enhance the shopping experience, making it more convenient and eco-friendly, and appealing to consumers looking to maximise their time.
As ultra-convenience drives demand for flexible options, retailers and delivery operators can leverage technology to address consumer concerns and provide a more seamless experience.
Bridget McCusker, Research Analyst
For the purposes of this Report, Mintel has used the following definitions:
Delivery is defined as an order that is delivered to a customer’s home, work, place of education or any other location that they have used as a traditional postal address.
Collection is used as a broad term to describe the numerous collection services offered in the UK retail sector. Broadly speaking, collection orders can fall into one of three fulfilment methods:
Return(s) is used to describe any returned goods from an online order. This can be done through postal means, in-store or via a third party.
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