Frustrated consumers are spending £4.9 billion less with their favourite high street retailers online due to missing delivery options, according to new research.
The Untapped Goldmine study – published by new on-demand delivery service Stuart – indicates that in the UK alone, consumers return online goods worth approximately £59 billion each year.
The study also says that eight out of 10 consumers would switch from their favourite high street retailer if it didn’t offer their preferred delivery method, while half of those surveyed wished high street retailers offered better delivery services when shopping online.
Despite this, 32 per cent said they always choose a high street retailer that offers same-day delivery over one that doesn’t, while 72 per cent said they would shop more with their favourite high street retailer if it offered same-day delivery – spending an average of £168 extra each year.
The report also highlighted the growing demand for convenience among consumers, with 39 per cent saying it was most important when it came to delivery, as opposed 23 per cent who said price was the top factor.
Ten per cent of those surveyed said they would be happy to pay £11 or more for one-hour delivery, while 62 per cent said they would pay a premium for same-day delivery, offering a potential extra £94 million in revenue from deliveries alone.
Despite this, 63 per cent of those surveyed said they have abandoned an online purchase due to poor delivery options.
“The findings highlight a growing need to address convenience in the last mile of the customer journey: delivery,” Stuart UK managing director David Saenz said.
“Too often convenient delivery – and returns – are being considered a ‘nice to have’, not a necessity, by high street brands.
“Online shoppers, however, view delivery as the lynch pin when it comes to their brand loyalty. In five years’ time, instantaneous delivery and returns will be mainstream.
“The retailers who invest in this now will not only be winning the race for consumer loyalty but will also reap the financial rewards that come with it.”