by admin at 10:54 am on October 30, 2009
According to a recent article in New Media Age magazine the recent strike action is forcing etailers away from using the Royal Mail and many will not be going back.
It is believed by industry experts that continuing strike action by the Communication Workers Union (CWU) against the Royal Mail has damaged consumer confidence in online shopping so much that retailers will switch to alternatives if strike action continues.
Research by the Centre for Economics and Business Research (CEBR) estimated that the damge to online retailers would be between £220m and £100m in lost sales and £120m in increased costs a week, based on the length of the 2007 postal strike. However it was found that online retailers were willing to absorb the higher costs of alternative suppliers in order to maintain online revenues ahead of the Christmas period.
It is believed that many online retailers will not switch back to the Royal Mail despite the higher costs involved with alternnative providers. A huge factor in this decision is that research shows that 94% of customers would not buy from a retailer again if they failed to deliver their order.
This statistic hammers home the importance of delivering items on time, and whilst it is a blow for the Royal Mail other delivery methods are seeing a huge growth in business. It’s difficult to know what the future holds, but whilst the strike action continues to harm on of it’s biggest customers it’s easy to see why online retailers are turning their backs on the Royal Mail.
Source: www.nma.co.uk & New Media Age 22nd October 2009



