UPS: Next Day Delivery important USP for Christmas peak

UPS has warned retailers that the success of next day delivery services could define their commercial success during this years Christmas peak.

In past years the Christmas peak sometimes turned out to be a bit too much for retailers and their delivery partners. Next-day delivery promises could not always be fulfilled to the displeasure of online shoppers. UPS has now warned retailers to step their game up as this years peak is expected to be even more fierce because of the widespread surge in online shopping due to the Covid-19 lockdown.

Nearly 30% of retail trade is being conducted online nowadays according to the ONS, and there is no indication that this trend will stop as Covid-19 is still here. Total online retail sales in August were nearly 47% higher than in pre-pandemic February – and pre-pandemic February had a higher volume online sales than November and December in 2019, according to the ONS.

Oli Horne, e-commerce marketing manager at UPS, told Logistics Manager: “As we enter a global recession, online shoppers will be looking for the best deals, and this means that the popularity for shopping online is only set to increase as we enter this year’s peak shopping season. Next-day delivery will continue to be a fundamental way in which retailers can respond to rising consumer demands for more convenient delivery solutions.” Google trends data shows that search volume for “next day delivery” surged and almost reached its all time high shortly after the pandemic struck. With peaks usually around Christmas, this years’ search volume peak for “next day delivery” is expected to crush previous records.

He added that UPS was focusing on services that “enable customers to choose a convenient time and place to receive or pick up packages.” He pointed to the recent introduction of its Saturday service which allows savvy shoppers to get their packages delivered on Saturday – even when ordered on Friday.

“The winners of the recent e-commerce boom are those who have been able to adapt quickly to meet customer needs. Any business who has embraced an e-commerce model could see a long-term benefit as we move towards post-pandemic recovery.”

Last update: 17th October 2020