E-commerce growth hampered, says Royal Mail

A lack of flexibility and choice around delivery options could be hampering online retail growth in the UK, new research by Royal Mail has revealed. The figures highlight a gap between what shoppers want and the experience some online retailers provide. Most notably, 52% of online retailers fail to meet five of the most important customer criteria around delivery.

With the online retail market forecast to be worth an estimated £56bn in 2010, Royal Mail’s latest Delivery Matters research reveals online retailers lost £2.7bn in revenues in 2009 as a result of customers abandoning their shopping carts due to issues surrounding delivery.

The research, cross checked against IMRG data, identifies five key criteria where there is a mismatch between shoppers’ needs and online retailers’ delivery offerings.

To help bridge these gaps, Royal Mail has worked with IMRG to create five golden rules that online retailers must follow if they are to deliver the optimum online shopping experience:

– Be flexible – give customers the option to choose the delivery dates that they want so that they can receive their order at the first attempt.

– Help customers to help you – accept delivery instructions and requests, as it will improve the chances of meeting your customers’ needs.

– Keep customers informed – let customers know when items are dispatched and when to expect delivery, allowing them to track progress where possible.

– Don’t be late – make sure customers’ goods are always delivered on time, and ensure you offer fast delivery options.

– No surprises – explain your delivery service right at the start and be transparent with your delivery costs and returns policy as the customer shops.

Gary Winter, Royal Mail’s head of goods fulfilment, said: “Customer needs continue to evolve and in a massively competitive online marketplace retailers that operate in a bubble and fail to take these needs into account risk losing business.

“To help online retailers bridge the gap – particularly in those key areas where success could result in increased online shopping – our golden rules and retail offerings can help these companies raise their game and ensure that the online shopping experience really delivers.”

The Golden Rules for Online Retailers follow the launch of three recent Royal Mail developments:

– Opening hours – adding an extra 2.6m hours per year to the opening times of its busiest delivery offices.

– Delivery Promise Tool, which audits retailers’ websites based on navigation, buying process, delivery options and information through to the post-purchase experience.

– Royal Mail E-commerce Engine®, which helps online retailers manage their inventory, accounts and logistics across multiple on and offline sales channels.

– Royal Mail PacketPost Returns, provides a convenient returns service for online retailers, allowing shoppers to dispatch returns for free via their local Post Office.

David Smith, managing director of IMRG said: “In order to support the continued growth of our industry it’s vital that online retailers regularly evaluate the scope of their delivery offerings and look for new ways to satisfy customer expectations – particularly given that the evidence points to a real opportunity for increased sales and customer loyalty. Royal Mail’s Golden Rules are in line with our own research and consistent with our own Gold Standard for home delivery. ”

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