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Tipping point as next-day delivery overtakes economy option: IMRG

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For the first time, more shoppers are opting for next-day delivery than economy, new figures suggest.

The IMRG MetaPack UK Delivery Index found that 36.7% opted for the premium service, while 33.8% opted for the less expensive but slower economy option.

Andrew Starkey, head of e-logistics, IMRG , says there are a number of potential reasons for this change, which follows a general and gradual increase in the percentage of next-day orders. “Some retailers see delivery as a differentiator and are offering next-day as standard, others offer it if the customer’s basket value is above a specific threshold and for others the charge for next day is smaller than it has been on average in previous years. A move toward faster delivery is not unexpected and, for carriers, it doesn’t represent a capacity issue during most of the year – but during peaks such as the Black Friday period, promotion of next-day delivery should be handled more cautiously.”

The news came as online orders grew by 18.2% in August, compared to the previous month, reflecting, says the IMRG, resilience in shopper confidence following the Brexit decision.

There has also been an increase in the proportion of orders being sent to other countries, with 27.8% of UK orders now going to international destinations.

Kees de Vos, chief product officer at MetaPack , said: “August is traditionally a slower month, so it is great to see delivery numbers swinging up again, and cumulative growth back on track. Despite our concerns about the effects of the European Referendum, overseas shoppers are taking advantage of the strength of Sterling which is boosting overseas deliveries with the added bonus that we are seeing a rise in order values from cross-border shopping. With requests for next-day deliveries moving ahead of economy deliveries we are also witnessing a strengthening in the trend towards speed over cost.”

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