A research by the international consulting OC&C Strategy Consultants found that E-freight service tools: “Click & Collect” and online delivery are all set to increase twice than their present implementations in the United Kingdom. The global firm said that retailers could cut their margins by 1.5%, except for they tackling the ending last mile’s economics.
By the year 2025, the firm is expecting 30% of total sales i.e. £69b to be handled by the home delivery system through cargo services and Click & Collect standing for 10% market i.e. £23b. It also estimates a 60% decline down to £138b in in-store purchases.
The firm’s partner & retail head, Anita Balchandani, marked out the insufficiency of investments in the prominent areas of e-commerce that comes with six among ten shoppers giving up online baskets due to issues concerning the last finishing mile. She added that the final leg is rapidly gaining prominence as the supreme battleground to retailers because of shoppers demanding more convenience; marking out the popularity of predictable slots of delivery, free delivery on the next-day itself and a reasonably priced delivery on the same day, as norms.
She also mentioned that retailers are facing a challenge in thinking of methods to meet the changing and evolving expectations while also hoping and trying to make economics work in order to help their business.