Delivery saver schemes are growing more popular as those shopping for goods from groceries to fashion commit to buying regularly from one retailer in exchange for more convenient delivery, a new report suggests.
More than a third (37%) of online food shoppers subscribe to a regular grocery delivery saver scheme in 2019, according to a new GlobalData report, UK: Retail Channel Series; Delivery saver schemes 2019. That’s up from 35% a year ago. GlobalData says that Ocado is the most successful, with 40.2% of those who have bought form the retailer int he last year subscribing to its smart pass – despite it having the highest cost of subscription.
Emily Salter, retail analyst at GlobalData, said there had been little change in grocery delivery saver schemes in the last year, aside from Tesco. “The retailer has introduced a same-day option for its saver scheme, helping to boost the percentage of its shoppers subscribing from 20.8% in 2018 to 30.7% in 2019, while fending off competition from Amazon Fresh,” she said.
The study, based on a survey of 10,000 UK online shoppers, found that more than a quarter (26.8%) of those buying non-food products had signed up to a delivery saver scheme such as Amazon Prime or Asos Premier in the last year.
Among younger shoppers, aged 16 to 24, 44.8% have done so. GlobalData says it expects that percentage to rise as more clothing and footwear retailers offer frequent purchase schemes, especially since younger shoppers have high expectations of fulfilment options.
Salter said: “The price of Asos Premier increased from £9.95 to £14.99 in August 2019, but since the cost of its next-day delivery is £5.95 outside of premier and the retailer sells a huge range of products and brands, this rise was justified. However, at the start of October, Asos lowered the price back down to £9.95 after less than two months - proving that consumers were not willing to pay more, and other competitors schemes are also pegged at the £10 mark.
GlobalData pointed to other retailers with delivery pass subscriptions lifting the cost of their next-day delivery. For example, it says that Missguided raised its next-day delivery charge from £3.99 in 2018 to £5.99 in 2019, while boohoo moved from £4.99 to £5.99.
Image courtesy of Ocado