Over a quarter of non-food online shoppers have subscribed to a delivery saver scheme, such as Amazon Prime or ASOS Premier, in the past 12 months*, as shoppers increasingly desire fast low-cost fulfilment, according to GlobalData, a leading data and analytics company.
This figure rises to 44.8% for 16-24s as this demographic is well-served by clothing & footwear retailers offering schemes as they purchase online frequently, and have high expectations of fulfilment options.
GlobalData’s latest report, ‘UK: Retail Channel Series: Delivery saver schemes – 2019’, notes that this percentage is likely to rise as more clothing & footwear specialists are expected to launch schemes in the future (Topshop, Miss Selfridge and QUIZ have all introduced schemes recently), as they can be used to boost shopper loyalty in the competitive young fast fashion market.
Emily Salter, Retail Analyst at GlobalData commented: “The price of ASOS Premier increased from £9.95 to £14.99 in August 2019, but since the cost of its next day delivery is £5.95 outside of Premier and the retailer sells a huge range of products and brands, this rise was justified. However, at the start of October ASOS lowered the price back down to £9.95 after less than two months – proving that consumers were not willing to pay more, and other competitors’ schemes are also pegged at the £10 mark.”
A number of clothing and footwear retailers have increased the price of their next day delivery, encouraging shoppers to sign up to their delivery saver scheme as the cost equates to the price of next day delivery for two orders. For instance, Missguided increased its next day delivery cost from £3.99 in 2018 to £5.99 in 2019, and boohoo.com has lifted its charge from £4.99 to £5.99.
The percentage of food and grocery online shoppers that subscribe to a food and grocery delivery saver scheme has risen from 35.1% in 2018 to 37.0% in 2019*, as an increasing number of shoppers are purchasing food & grocery online more regularly, warranting the cost of a delivery saver scheme. Ocado is the most successful grocer at converting shoppers to become members of its delivery saver scheme, with 40.2% of those who have purchased from the retailer in the past year subscribing to its smart pass*. This is despite having the highest cost of subscription, though this is less likely to put its affluent shoppers off, and Ocado can tempt shoppers with additional benefits such as exclusive offers and a subscription to Ocadolife magazine.
Salter concludes: “There has been little change in the delivery saver schemes offered by grocers in the past year, with the exception of Tesco’s. The retailer has introduced a same-day option for its saver scheme, helping to boost the percentage of its shoppers subscribing from 20.8% in 2018 to 30.7% in 2019*, while fending off competition from Amazon Fresh.”
*Data is from GlobalData’s 2019 E-retail surveys of 10,000 nationally representative UK online shoppers