In recent times we have seen surveys suggesting that consumers are happy to buy their products online may be abusing the free delivery system. It is common knowledge that many consumers will buy one dress or one shoe in different sizes, returning the items which do not fit. This has created something of a problem for the e-commerce market and the cost of delivery. Even though many consumers will search for the “free delivery” option, delivery charges will become the norm in due course. Why?
Amazon changing e-commerce
Amazon offers a variety of different delivery options from free delivery for some items to the Amazon Prime membership alternative. The idea is simple, hook first-time buyers and returning consumers and ensure they come back to Amazon time and time again. This is a very interesting and we now know lucrative method of encouraging customer loyalty – which will eventually become the norm.
Is free delivery feasible?
The simple answer is no, free delivery of items going forward is just not feasible for many small online retailers. While some may look to increase prices to supplement “free delivery” very often this is not an option when consumers compare like-for-like. We will most certainly see a change in trend in the weeks, months and years ahead, with delivery charges for e-commerce items set to become the norm.
As we touched on above, many consumers will buy different sizes of the same product and send back those which do not fit. If you imagine the tens of thousands of consumers, if not more, who regularly carry out this practice, the cost of free delivery and free returns must be huge. Also, consider the extremely competitive nature of the e-commerce industry, whether selling shoes, footballs or dresses, and the downward pressure on product pricing.
Squeezing out the competition
It is no secret that over the last couple of years we have seen a massive impact on the high street right across the globe. Retail outlets once seen as “bellwethers” are unfortunately falling like flies with many on the brink ahead of this Christmas. The ability to buy your products online 24 hours a day seven days a week at your convenience has decimated the high street. Ask yourself, when was the last time you bought a product on the high street?
The reality is that by squeezing out the high street competition, and often trimming the size of long established companies, online retailers will eventually be able to introduce delivery charges. In effect, such would be the lack of alternatives on the high street that many consumers will simply be forced to stomach the delivery charge. At the end of the day, this charge has been supplemented by e-commerce businesses for some time now and in many ways the introduction of standard delivery charges will be payback time.
Summary
There is no doubt that the world of online retail has changed the face of high streets across the globe. Many retailers previously seen as “untouchable” have literally fallen by the wayside due to competition and their high base costs. The problem is that traditional retailers with many shops are not as nimble as their virtual counterparts who may simply have warehouse storage for products and limited office space for admin. It is not difficult see the huge difference in running costs, let alone base costs, and how this will impact businesses going forward. Eventually, could we move full-circle and see high street shops as the new trend? Offering the ability to touch and feel products before buying them? Time will tell…………..