UK Online Retailing: Delivery, Collection and Returns Market Report 2025

UK Online Retailing Industry – Trends and Insights

• As consumers seek greater control over their online purchases, the post-purchase journey is undergoing a transformation. Investment is shifting towards out-of-home networks, with retailers and delivery operators looking to add more touch-points to boost convenience and flexibility. The value of collected orders is expected to grow by 8.6% in 2025.
• 40% of online shoppers are willing to pay extra to collect all their orders from a single point, which underlines this desire for convenience. A threat to the adoption of these services is perception of safety, as 61% of consumers feel uncomfortable collecting parcels from a locker at night. This highlights a barrier that must be addressed to unlock the full potential of out-of-home networks.
• The demand for seamless experiences also presents an opportunity to create frictionless returns, with 52% of online shoppers wanting instant refunds as soon as their parcel is scanned. Innovations like label-free and box-free returns are gaining traction, pointing to a future where returning is as easy as buying.

Key Issues Covered in the Report

• The estimated value of collected orders within the UK online retail market
• Consumer use and perceptions of different delivery and collection methods for online orders
• The level of online returns, and consumer attitudes towards the returns process
• Consumer comfort and security in using lockers, and strategies to grow usage without adding friction
• Attitudes towards delivery and collection, including opportunities towards greater convenience in the post-purchase journey 

Market Definitions

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:

• Click-and-collect in-store: this is where payment is taken online and the order is made available for collection at a retailer’s own store or via another retailer’s store through a partnership, eg through Amazon’s Hub scheme.
• Reserve-and-collect in-store: this is where no payment is taken at the point of purchase, rather the items are reserved to be collected and paid for in a retailer’s own store.
• Click-and-collect at third-party locations: this is where, usually, payment is taken online and then products are made available to collect at a location that is not the retailer’s store. Examples of third-party collection services include collection services such as Collect+, where products are made available at other participating stores, or first- or third-party locker services where products are delivered to and held in lockers for collection.

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.