Author: Andy Mulcahy, Editor, IMRG & eCommerce Worldwide
Home delivery remains the most popular fulfilment method, but click & collect has become a major option. While it is not a new fulfilment concept, it took a while to become widely adopted in the UK.
Increasing online delivery volumes were putting pressure on capacity (particularly around peak) and it came to a head in 2010 – when the UK experienced a sustained period of extreme weather conditions in the lead-up to Christmas, which caused huge disruption to the delivery network. More recently, Black Friday has become a major sales event in the UK where huge volumes of orders are compressed into a short timeframe, putting further pressure on capacity.
Following 2010, many retailers have invested in click & collect solutions. It’s important to bear in mind that there are multiple different options:
In 2010, the average quarterly penetration rate for click & collect sales completed online for multichannel retailers was 10% . Although it appears to have reached a plateau at present, in 2015 the average quarterly rate was 23% – so almost a quarter of online sales for multichannel retailers now use this fulfilment option.
Furthermore, a report by IMRG and CollectPlus predicted that click & collect options in all its forms – in-store, parcel store and lockers – will continue to increase in popularity at a growth rate of 20% per year.