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E-commerce giant slams Royal Mail strikes

Postal service killing itself as online traders seek alternatives

Phil Muncaster, V3.co.uk 29 Oct 2009

The Royal Mail is "committing suicide" by its strike action, as most online retailers have already lined up alternative carriers to deliver orders, according to the founder of e-commerce success story Figleaves.

Michael Ross, who is now director at e-commerce software and services provider eCommera, said that, although Royal Mail is often cheaper than its commercial rivals, customers will probably not mind spending more to ensure that purchases are delivered on time.

"The Royal Mail is merrily committing suicide," he said. "Most retailers now have alternatives. There are enough good second-tier alternatives around."

Ross highlighted the work of pioneering delivery management firm MetaPack, which acts as an intermediary between retailer and a range of delivery firms. John Lewis is one of the big name retailers on its books, using the service to provide carrier contingency during the strikes.

He also argued that an eventual privatisation of Royal Mail could provide the catalyst needed to reinvent the delivery system for goods ordered online, often cited as the major area where e-retailers fail to meet the needs of customers.

Ross also suggested that falling rents and the increasing number of bricks and mortar stores closing down could see 24 x 7 high street collection points becoming a feasible option.

See also:

Meglena KunevaMeglena Kuneva talks up importance of Europe-wide shopping  22 Oct 2009
Apple iPhone applicationsDevelopers will be allowed to sell items within free apps  16 Oct 2009
amazon logoE-commerce giant begins selling own-branded products  21 Sep 2009
Online shoppingTighter regulations in the offing as consumer electronics sites break trading standards  09 Sep 2009

All Ecommerce
Tags: Internet, Retail, E-commerce, Royal-mail, Ecommerce, Strategy

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