FBA & FBM Ecommerce Fulfilment – More background information

The more time that you spend looking at the whole area of ecommerce in terms of the market and the direction that it is heading in the more questions there are. here are some more trends and numbers that we have found interesting.

In the UK the average spend per internet user is still going up and by 2025 is forecast to reach £1373 and as of now 55% of the population shop on line which has been boosted as a result of the virus.

The UK leads Europe for ecommerce retail sales having increased by 22% since 2020 with Germany and France being at numbers six and seven.

Here are the top UK web sites by revenue 2019 to 2020 showing e-commerce revenue (£ millions)

Total revenue 19/20Million19/20 Revenue change%
Amazon.co.uk & .com£30,000up48.5
Tesco.com£5,000up61.5
Argos.co.uk£2,500up40.1
Sainsburys.co.uk£2,500up81.2
Currys.co.uk£2,500up71.8
JohnLewis.com£2,000up35.1
Asos.com£2,500up35.9
AO.com£1,000up60.7
Marksandspencer.com£1,000up11.5
Waitrose.com£1,000up57.3
Wayfair.co.uk£750up79.5
Screwfix.com£500up20.7
Morrisons.com£500up18.7
Sportsdirect.com£500up13.4

All big numbers and a different world to us in volume but having said that the same key areas apply no matter what size of business you are dealing with.

The Amazon number is unbelievably big and gives us an idea of how much power in the world of ecommerce they have – no wonder that the founder is at the top of the list of richest people.

This is interesting and sparking lots of questions so continuing with the list here are the next lot;

Debenhams.com£400up7.6
Zara.com inc USA£2,500up60.3
Boohoo.com£500up12.2
Ikea.com inc USA£2,500up42.6
Jdsports.co.uk£300up15.7
Boots.com£300up16.4
qvcuk.com£300up21.9
dunelm.com£300up22.1
shein.co.uk£300up44.3
littlewoods.com£300down10.4
toolstation.com£300up38.9
nike.com inc USA£2,500up17.6
prettylittlething.com£300up20.7
diy.com£200up38.2
studio.co.uk£200up9.7
iceland.co.uk£200up53.2
Halfords.com£200up13.5
hm.com inc Germany£2,500up28.8
homebase.co.uk£200up25.7
riverisland.com£200up2.6
therange.co.uk£200up25.8
victorianplumbling.co.uk£200up37.5
ebuyer.com£200up7.3
zalando.co.uk£150up32.5
newlook.com£200down3.6
adidas.co.uk£150up10.0
superdrug.com£150up3.7
mandmdirect.com£150up33.9
wickes.co.uk£150up35.2
selfridges.com£200up16.9

Looking at the conversion of ecommerce by country Germany is at the top of the list with an average conversion rate of 2.22% while Italy lags behind at 0.99%.

Typical e-commerce conversion rate in countries:
Germany: 2.22%
United States: 1.96%
United Kingdom: 1.88%
Denmark: 1.80%
Netherlands: 1.78%
Greece: 1.44%
France: 1.10%
India: 1.10%
Italy: 0.99%

So numbers are useful but there is more to the story than that so what are the trends in ecommerce that we see happening now.

An obvious one to start with:

More people are buying both product and services on line

The use of mobile telephone for ecommerce is increasing fast with fewer people using desktop and other tablet devices.

A Google survey quotes that 59% of ecommerce buyers say that having a quality mobile friendly web site has influenced which site they use and which brands they purchase.

The customer experience is a key part of the buying process and 57% of buyers say that a bad experience made then change which web site they used.

So the message for all web site ecommerce companies is clear

From an ecommerce fulfilment perspective what we place as key factors in providing top quality FBM management are (these are also good for our customers as they are key to keeping all customers positive and ready to return).

  • having stock ready to dispatch or drop ship
  • accurate and timely packing with inbuilt checks on every dispatch
  • on time dispatch with monitoring of every order
  • keeping customers advised of their order
  • providing easy communications customers so that any questions are easy for them to ask
  • a quick response to each question

So there is nothing that difficult in these areas and it really is only providing a service of a type and quality that you would expect as a customer yourself – a simple tried and tested philosophy.

We would also add that as our ecommerce business grows we can see an issue starting to happen which can be described as an over keenness to keep customers happy and in the loop – this can be counterproductive e.g. too many emails which just generate extra unnecessary admin for customers to deal with.

The best customer service achieves the right balance keeping customers informed but without hassle.