River Island says it has saved £3m over three years after adopting new delivery technology.
Since the fashion retailer implemented MetaPack Manager three years ago, it now uses advanced allocation rules that dynamically assign parcels to the right carrier, depending on their type, value, size and delivery postcode.
It now ships thousands of parcels a day using the system, which also enables customers to choose from eight international delivery services as well as a range of in-store collection services.
River Island ecommerce logistics manager Sunil Bhudia said the rules-based approach had increased delivery flexibility for orders overseas and at home.
“This has been reflected in the savings that have been made in the last three years,” said Bhudia. “We can clearly see that international rates have been dropping substantially year-on-year, with greater customer satisfaction, lower loss rates and around a 39% overall fall in costs of overseas delivery. This equates to around £3m in savings over this period based on the decreasing average delivery cost, lower customer service interactions and lower lost parcels.”
Meanwhile, MetaTrack tracking functionality has meant that River Island has seen inbound calls to its customer service teams drop by 35%, even as multichannel sales grow quickly. “We’re seeing year-on-year increases in new visitors and registered users of the website,” said Bhudia, adding: “Domestically we’ve experienced a 15% year-on-year increase in conversion. Shopping cart abandonment figures are falling, and this trend shows that improving delivery options, payment methods and checkout design does increase conversion.”
Repeat customers account for 51% of all orders at River Island, which now trades from 350 stores around the world, and six dedicated websites in four currencies.