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Premium delivery overtaking economy

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More retailers are now opting for premium delivery services, according to ecommerce logistics specialist MetaPack.

It has seen a fall in the number of retailers who are opting for economy services. Analysing the services offered by 150 traders, using 23 carriers, the company has found that three years ago 80% of parcels were delivered through economy services.

Today that has changed completely, with 43% of items now sent via economy services and 57% sent through premium options. There has been a particularly strong growth in tracked, next-day services, which, it says, is now the “new standard delivery”.

Patrick Wall, chief executive of MetaPack, said: ““This is a ground breaking insight that challenges much of the conventional wisdom in the market on pricing for deliveries. Despite a tendency for many ecommerce sites to offer a standard delivery for free, customers are actually preferring to pay a premium to have the goods in their hands as quickly as possible. Online shoppers are enjoying the immediate satisfaction that’s also offered by the traditional shopping channel. With this trend identified it is now clear that the market will swing further in favour of next day, tracked, nominated day and time specific services.”

MetaPack believes that the increase comes partly from retailers who offer only tracked delivery, while other carriers have upgraded their non-tracked services to tracked.

At the same time, average shopping value is increasing, and the more expensive the goods the more likely they are to be delivered by next-day or tracked delivery. The reverse is true where goods are cheaper. Nonetheless, premium services for low-value goods have risen from 20% t 40% in the last three years, says MetaPack.

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