Here we are, at the end of another month, so you know what that means…it’s time for us to round up the three biggest eCommerce news stories that made headlines in April 2022.
Less than 20% of big retailers will meet their sustainability targets
A survey conducted by the Boston Consulting Group for the ‘Sustainability In Retail Is Possible – But There’s Work To Be Done’ report found that retailers aren’t reducing Scope 3 emissions enough to limit the rise in global temperature to 1.5 degrees.
37 global retailers were surveyed, all with annual sales between $1-500 billion in the areas of grocery, fashion, homeware and electronics. Some of the key findings included:
- More than 50% of those surveyed haven’t set key performance indicators (KPIs) specific to measuring sustainability efforts.
- 57% feel that they have invested enough in sustainability over the past 3-5 years in order to reach their climate goals
- 97% believe that their company will capture value from sustainability over the next 5-10 years
The positive ecommerce news from the report, however, is that 40% of retailers are currently on track to meet Scope 1 and Scope 2 targets as set out in the Paris Agreement in 2015.
Read the full report here.
Ecommerce news - subscription market set to hit $120 billion
The online subscription business model is booming, with an expected compound annual growth rate (CAGR) of 64.64% between 2021 and 2022. That’s according to research carried out by The Business Research Company in its Subscription Ecommerce Global Market Report 2022. It’s also being predicted that an annual growth rate of 65% will hold steady for the next few years, bringing the industry’s worth to a massive $904.28 billion by 2026.
The exponential growth in the subscription market is being attributed to the rise in online shopping throughout the pandemic as well as the additional benefits that customers can expect when committing to a subscription service (digital services or physical goods) – for example, convenience, predictability, and preferential pricing.
Read the full article here.
Only 14% of UK retailers are offering unconditional free delivery
Just 14% of UK retailers are currently offering their customers free delivery without a minimum order threshold, it was revealed by IMRG at this week’s Delivery Summit 2022. Data collected from 300 retailers and IMRG members shows that a clear majority of retailers offer free delivery as an option to customers – but it comes with the condition of spending a minimum amount per online purchase.
- 58% of retailers offer free delivery with a minimum order threshold
- 28% offer standard paid delivery
- 14% offer free delivery without a minimum threshold
Additionally, retailers who offer free shipping with a threshold as an option associated 43% of their revenue to those orders, while next day free delivery (threshold), click and collect (3rd party pickup) and free next day delivery (no threshold) all account for just 1% of their generated revenue.
Finally, data provided by 130 retailers over an eight-month period shows that there’s been a significant jump in the number of retailers who are offering next day paid delivery as an option to customers. The figure rose from 82 in August 2021 to 102 in April 2022. Next day free delivery with a minimum spend threshold also dropped drastically from 67 retailers who offered it as an option 8 months ago to just 20 now. While these trends are down to a series of factors, sustainability efforts along with shipping price hikes are likely to have played a part in the changes that we’re seeing.
Michelle McSweeney Content Marketer