Retailers increasingly tapping into delivery saver schemes
Over a quarter of UK non-food online shoppers have subscribed to a delivery saver scheme, such as Amazon Prime or Asos Premier, in the past 12 months, according to research from GlobalData involving 10,000 people.
This figure rises to 44.8% for 16-24s. This demographic is well-served by clothing and footwear retailers offering schemes as they purchase online frequently, and have high expectations of fulfilment options. The percentage is likely to increase as more clothing and footwear specialists are expected to get onboard in the future (Topshop, Miss Selfridge and Quiz have all entered the space recently).
Emily Salter, Retail Analyst at GlobalData, notes that the price of Asos Premier increased from £9.95 to £14.99 in August, 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. Other competitors’ offerings 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.
Ocado
The percentage of food and grocery online shoppers that subscribe to a scheme has risen from 35.1% in 2018 to 37% in 2019, as an increasing number of shoppers are purchasing items online more regularly.
Ocado is the most successful grocer, 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 it 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.”