Holiday Shoppers Demand Free, Rapid Delivery, Taxing System, says FBIC Report

Online and in-store sales remain on track for 3 percent to 4 percent increase over 2014 figures despite shipping delays, writes Executive Director Deborah Weinswig

December 23, 2015

NEW YORK (December 23, 2015) – As online shopping continues to grow faster than brick-and-mortar and as the holiday shopping season comes to a close, it’s clear that shoppers don’t just want their items fast, they want them NOW and FREE, boosting the appeal of companies that can offer free and rapid delivery, says “Holiday Shipping 2015: Faster, Faster!” a just-released report from Fung Business Intelligence Centre Global Retail & Technology (FBIC). While unprecedented demand from e-commerce may make that promise difficult to keep, FBIC is maintaining its estimate of a 3 percent to 4 percent year-over-year increase in holiday sales (from $626 billion to $633 billion).

Shipping has gone from being a necessary but mundane part of
e-commerce to a major selling point, as free and faster shipping drives sales, writes Executive Director-Head of Global Retail & Technology Deborah Weinswig. But the expansion of free shipping has overwhelmed delivery services, and many retailers have already stopped guaranteeing delivery by the holidays. Only the United States Postal Service will deliver packages on Christmas Day.

“Consumers needed to order holiday gifts earlier this year, since an abundance of free shipping has led to shippers facing delays due to the unprecedented volume of packages, and some retailers have experienced early cutoffs for sending packages via ordinary shipping methods before the holidays,” Weinswig says.

“This year, the shipping industry was caught flat-footed by the explosion in orders, leading many to miss targets and causing some retailers to curtail guaranteeing delivery by the holidays,” Weinswig says. “Those consumers desiring even faster shipping can turn to e-gifting or perhaps delivery by drone in the future.”

The full report can be found HERE. Other holiday-related reports issued by FBIC are: “2015 US Black Friday Preview,” “2015 UK Black Friday Preview,” “UK Christmas 2015 Hottest Toys,” “Singles’ Day 2015 Wrap-up,” “UK Christmas 2015 Macro Update,” “Top 20 Toys for Holiday 2015,” “2015 U.S. Holiday Hiring Outlook,” “8 US Retail Themes for Holiday 2015,” and “UK Christmas Retail 2015 Forecast.” All of FBIC’s reports and analyses can be found at  www.fbicroup.com and www.deborahweinswig.com.

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