You are here: silicon.com > Retail & Leisure

Leader: Missing Xmas parcels highlight online fulfilment dangers

Will the increase in demand backfire on retailers?

Tags: christmas, retail, online, goods

By silicon.com

Published: 2 January 2008 14:54 GMT

It can't be denied that the holiday period has been a bumper haul for internet retailing. One early poll put increases in customers at 27 per cent and increases in revenues at 46 per cent compared to the same period in 2006. This suggests not only are more people shopping on the internet, but they are spending more money too.

It appears that the economic doom and gloom of the past few months was forgotten, for a while at least, with retailers such as Marks & Spencer launching their latest sales on midnight Christmas Day, ensuring consumers would not stop shopping even on the 25 December.

Against this positive news for retailers however, is a worrying trend. Along with the rise in sales comes a rise in fulfilment problems. Many online shoppers had the convenience of buying goods at home offset by having to queue at postal depots to recover the goods they bought. A straw poll of the silicon.com editorial team found one online shopper had a gift arrive six days after Christmas Day and this is undoubtedly not the only example of goods arriving late.

Retailers face a real danger of becoming the victims of their own success, with growth in sales actually damaging brand loyalty if they don't pay more attention to fulfilment of orders. In fact, it may be more likely the parcel delivery services are at fault, but customers won't see it that way. They will be more likely to blame the retailer they purchased the late (or in some cases never) arriving gift from.

It seems the retailers getting it right more often are the dedicated online companies, ahead of established brands with internet channels as well as a high street presence. Perhaps the dot-coms have more to lose if online shoppers come away with a bad experience at Christmas. More power to them and if there is a customer backlash on multi-channel retailers, they deserve what they get for not grasping a business opportunity when it is handed to them.

  1. Zones
  2. Management
  3. Networks
  4. Software
  5. IT Services
  6. Hardware
  1. Verticals
  2. Public Sector
  3. Financial Services
  4. Retail & Leisure


  • Jobs
SAP MM SD Support Analyst - North Yorkshire - 40,000

Our client is a global leader in its market place and is listed on the FTSE100; with an impressive list of brands, products and many household names, ...

Application Management Support Technician Java/J2EE Support, Unix

For more details about Salmon visit www.salmon.com This is a key role working for a software house responsible for the development and enhancement of ...

Service Delivery Manager - Customer Development & Food solutions - IT Manager - St. David\'s Park, Teeside , North West

Our brands are trusted everywhere and, by listening to the people who buy them, we've grown into one of the world's most successful consumer goods ...

Ged Keogh-Peters
Take stock for tough times
Opinion: Even with falling sales, innovation creates an edge

Simon Levine
Legal Eye: Bogus brands face web crackdown
But who should carry the can?

Tim Ferguson
How did the Heathrow T5 launch go so wrong?
Shiny new terminal, same old story... right?

Julian Goldsmith
Retail leaders will open up in tough times
Rather than cut back, the best will innovate to ride the slump

Penelope Ody
Retail in a rut: IT to the rescue?
Technology needs to meet changing consumer demands...

silicon.com
Online age verification Bill is cynical manipulation
Leader: More about political ambition than protecting children

CIO50 2008
The silicon.com CIO50 2008 profiles the most influential and innovative tech chiefs in the UK across all industries and organisation size, from the biggest FTSE100 companies to high growth dot-com start ups and the public sector. The list was voted on by the UK CIO community and a panel of experts. Find out more in our latest special report.


IT services
Outsourcing, offshoring and much more...



Quick Sitemap Links: