Online sales set to drive up deliveries to 1.35 billion per year by 2018

The most flexible and convenient e-fulfilment services are set to become all the more important in the coming years, according to new research commissioned by Barclays and conducted by Conlumino. Online shopping will power a rise in deliveries to more than 1.35 billion per year by 2018, according to the report.

Not only is the UK primed for a 29 per cent increase in shopping deliveries over the next four years, but The Last Mile Report 2014 from Barclays' Retail and Transport & Logistics banking sector teams predicts continued demand for online purchases of clothing and footwear. These items accounted for 20 per cent of all deliveries in the period up to 2018 - more than any other product sector.

Deliveries of food ordered online will also be on the up over the next four years, the report expecting them to surpass the number of book deliveries to become the online sector with the third highest delivery volume. Such a major expected rise in deliveries powered by online retail has been attributed to the more widespread use of smartphones and tablets for placing orders, alongside more flexible and convenient delivery options.

Just over 1 billion deliveries were generated by online orders in 2013, compared to the 1.35 billion that are predicted by 2018, with electricals the sector tipped for the greatest growth of 61 per cent, from 65 million last year to 105 million in four years' time.

Richard Lowe, Head of Retail & Wholesale at Barclays, commented: "Not only is the online purchasing and delivery market growing, it is also having to evolve quicker and more radically than previously. Driven by the increasing use of tablet and mobile devices, almost seven in ten consumers say they are looking for more innovative and rapid delivery options such as Sunday delivery.

"Although they seek more flexibility in delivery options, consumers are still very conscious of keeping prices low with cost influencing consumers preference more than any other factor including quality of service."

Lowe added that such convenient and flexible delivery options as non-store based click and collect pick up points were already being introduced by retailers in response to the evolving market. However, he added that "with the online sales momentum set to continue, our research shows that it is more important than ever for retailers to reassess their online strategy and boost investment in the online fulfilment process to maximise the benefits of this growing market place."

E-fulfilment industry observers will be interested to read that 60 per cent of all deliveries from online orders last year were letterbox-sized packages and small parcels, with letterbox-sized packages tipped for the highest growth - 45 per cent - over the next four years. The region set to see the most pronounced rise in deliveries, meanwhile, is East Anglia, although the South East is set to remain the highest-ranking region in terms of overall numbers.