Topic of the week – Prepping for Peak
Summer has officially ended, and although the heat returned briefly, it is starting to cool down as peak season approaches. It is now 101 days until Christmas Day so everyone in the retail and eCommerce sector can now expect business to begin ramping up. The tail end of the pandemic and the cost of living crisis meant that peak 2022 saw a slight incline overall that was not as drastic as years prior, however, the 2023 holiday season is forecast to come back with more of a bang, so carry on reading to understand what you can expect from peak 2023.
According to Adobe Analytics, last year’s online holiday sales reached an all-time high of $211.70 billion USD, a slight increase of 3.5% upon 2021’s figures. In the UK alone, online and store-based retail sales reached 52.18 billion GBP during holiday season 2022. Peak 2023 has eCommerce sales expected to grow 10.3% to 12.8% from 2022 according to Deloitte. Even though online sales during the holiday period continue to grow year on year, there are many factors that have slowed down the rapid increases that we have seen before, from the ongoing war in Ukraine, to inflation and cost of living rises. There are some things that you could do to prepare for peak 2023 and possibly boost online sales, but it is important to keep reasonable expectations in mind.
One thing to prepare for is making sure that your customer updates and alerts are frequent, as tracking the status of an order is one factor that can ruin the experience for buyers. Text or email alerts should be consistent through every stage of the delivery, from processing, to transit, to delivery. Another hot topic that we could see a lot more of in peak 2023 is the use of AI. As you may know many retailers are now implementing artificial intelligence throughout different stages of the online shopping experience to make it more seamless and smooth for the user. AI is being integrated in many ways such as customer service, reviews and to create a more personalised shopping experience.
Finally, the peak period doesn’t end after everyone has unwrapped all of their presents on Christmas Day. Retailers should expect an influx of returns and should also reflect on their returns policies ahead of peak 2023. You may want to revisit your returns window, consumer costs, and processes provide a timely turnaround. According to Optoro, the eCommerce return rate can be as high as 30%, and can sometimes provide a challenge for some retailers, so it is better to prepare early.
In other news
Access points cover Europe
DHL has added more parcel lockers and access points to its network last week, and has now reach 100,000 across Europe. DHL’s access point network is active across 20 countries in Europe with 80,000 service points and 20,000 parcel lockers.
Bpost have also reached a milestone within its own parcel pick-up point network as it has added its 3000th access point. Their network now covers the entirety of Belgium with the aim to reach 4000 pick-up points in the future in response to increasing demand for alternative parcel delivery and pick up methods.
eCommerce Market Stats
See some statistics relating to this week’s topics in the eCommerce market below.
Peak Season Stats
Christmas spending (online and in-store) in Europe 2022 (in billion GBP)
- United Kingdom – 82.2
- Germany – 73.27
- France – 62.48
The main concerns for shoppers during the holiday season in 2022 (share of respondents)
- Rising inflation – 28.8%
- Uncertainty around the economy – 18.3%
- Lack of savings – 11.6%
Popularity of delivery methods across the holiday season in the UK 2022
- Home delivery – 33%
- Delivery to other recipients – 22%
- Parcel lockers – 7%
Popularity of delivery methods across the holiday season in the EU 2022
- Home delivery – 27%
- Delivery to other recipients – 22%
- Parcel lockers – 12%
*All statistics sourced from Statista
That’s all for this week…
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