Delivering confidence in e-commerce

Fulfilment, oftentimes the weakest link of online retailing in the eyes of the consumer, is to receive a confidence booster. For the Interactive Media in Retail Group (IMRG) has taken the wraps off a new home delivery scheme in an effort to reassure consumers that internet shopping is reliable.

With the demise of the Which? Web Trader scheme two years ago, the IMRG Delivery Charter is a welcome and timely development for online shoppers and retailers. E-commerce companies signing up to the charter will adhere to a range of standards to help ensure the online shopping experience goes smoothly from start to finish and that goods arrive at their destination safely and speedily.

Companies meeting the criteria of the IMRG Delivery Charter will be entitled to display the scheme’s Internet Delivery Trust Mark on their sites.

IMRG believes the launch of the charter will be the catalyst of a major shake up in online shopping and help put the focus on fulfilment as a differentiator. Certainly, the timing does appear appropriate when IMRG are saying that online shopping will make up almost ten per cent of all retail transactions in the UK by the end of the year and that by 2010 the web industry share will have trebled to generate over a billion home deliveries annually.

In May past, e-retailing hit a new high with growth accelerating at its fastest rate in eight months, outstripping the high street traders by a factor of 40 despite aggressive discounting by the offline merchants. In hard cash, the online shopping activity during May produced sales amounting to £1.5 billion, 35.6 per cent (£408 million) more than a year earlier, and 13 per cent (£180 million) more than in April. At the same time, the IMRG Index climbed to a new high of 1785, with all retail sectors seeing significant increases.

“In a tough retail environment, large numbers of consumers are opting for the convenience and value that they are now confident that they will find online,” commented Jo Tucker, IMRG's MD, who directs the Index programme. “And the internet is a great trading medium for retailers too: it gives them real-time feedback on consumers' buying moods, enabling them to continually optimise with great precision their offers, ranges, prices and stock levels, in order to maximise profitability.”

One of the companies participating in the IMRG Index is gadget and gift site, Firebox.com. They are bullish about the prospect for online retailing; head of public relations, Charlie Morgan commented: “Whilst the high street continues to struggle, online sales have flourished, with no signs of abating. Firebox.com has seen an increase in sales during the first half of 2005 – 30 per cent in May compared to the same month in 2004.”

Many factors have contributed to the continuing growth in online shopping, including greater take up of broadband and improvements in secure payment and delivery systems, said IMRG CEO, James Roper. 

“However, no component is more important than the online shopping services themselves, and these are getting much better: the customer journey is becoming easier, product ranges are wider, merchants are using clearer images and richer product information, linked selling features add value by drawing attention to relevant accessories, options and associated products. During the past year, new investment by online merchants has re-energized the e-retail sector, and is delivering innovative new shopping services that add real value,” he remarked.

While there were strong online merchants in many sectors, there are still large gaps in the supply market - such as high-end fashion and real estate – indicating, added Roper, that broad scope exists for further industry growth.