Home-delivery service ParcelHero has some predictions for 2023 in e-commerce, and while retail may take a hit during the cost of living crisis, the company has detailed some trends to adopt and some to leave well in the past. 

ParcelHero’s Head of Consumer Research, David Jinks M.I.L.T., says: “No one is predicting 2023 will be a golden year for retailers, but there are a healthy number of growth areas to concentrate on, to maximise potential opportunities.

“Equally, some trends that ballooned during lockdown are now likely to burst, as shoppers forge a new balance between in-store and online shopping.”

Top Trends for 2023

Online shopping 

Post-covid, Birtains High Streets are beginning to thrive once again, which one would expect to mean a decline in online retail. However, the last seven months have seen online sales holding firm at 26% of the overall market. 

While not quite the 37% we saw of February 2021, this is still much higher than the pre-pandemic average of 19%. 

Going Green 

Despite the cost of living crisis, online shoppers claim to be content paying extra for a greener delivery service, which ParcelHero predictis will become a commonplace option in 2023. 

Sustainability in businesses is certainly on the rise, and greenwashing is not good enough to impress millennials and GenZ as they enter the market. Companies unwilling to go green may suffer the consequences. 

Traditional Mail to Fail 

ParcelHero has predicited that private couriers will continue to grow as traditional mail services are further disrupted due to pay disputes and strikes. Amazon Logistics, which already has 17% of the UK parcel market, will likely win out as traditional services struggle to overcome the current upheaval. 

However, Amazon is currently facing its own level of upheaval as more distribution centres resolve to form unions to fight for better working conditions, so the entire delivery service industry may continue to battle within, in both private and public sectors. 

Paid for Returns

Previously, UK shoppers could expect their returns to be free, no matter the reason, sparking trends of Boohoo and Shein hauls to rule social media, where influencers would buy a mass amount of clothes to try on, only to return the bulk of their purchases. 

Now, shoppers will pay nearly £2 to return an item to Zara or BooHoo, with ASOS being one of the last to still pay for returns. 

Better UX 

Finally, into the online bit of retail: web user experience will be a key determinant in the battle to win new customers in 2023. Offering a seamless, user friendly experience, online and in-store, will be an absolute must to stay relevant. 

In store pick ups are growing rapidly as well: a system that can handle this will be essential in keeping customers happy behind the screen and in the store. 

What 2023 Will Say Goodbye To 

Droids and Drones 

While previously couriers and online retailers were looking into robotics and drones for delivery, these have mostly fallen aside. 

Amazon has paused it’s testing of the home delivery robot as part of its budget slashes. 

While drones may be used to deliver particular items like medical and emergency supplies, development is too far behind to introduce it on an urban scale. 

Massive Warehouse Expansion

Large distribution centres will be a thing of the past, according to Parcel Hero. Instead, expect smaller, local hubs to pop up across the country, which whill double as EV charging stations. 

The one big growth area Parcel Hero predicts could be the Governmnet’s new freeport economic zones. Tax breaks and other incentives could fuel new centres in these locations. 

Investing in local hubs may decrease overall shipping costs as well as lessening a company’s carbon footprint. 

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Smart Shopping Gadgets 

Tech firms are slashing funding across the board, impacting anything outside of their core IoT projects. Innovations like VR are unlikely to come onto the online shopping scene anytime soon, and till-free store openings will also stall. 

Home Food Deliveries 

The food delivery market is going stale – online food sales fell by 13% as people returned to restaurants. Deliveroo slashed its takeaway service growth forecast by half due to the decrease. 

Ocado Retail’s revenue fell by 3.8% in 21/22 and it expects further fallings in the beginning of 2023 before it stabalises. 

ParcelHero predicts, however, that there may be growth only in local supermarket tie-ins like the Sainsbury’s and Just Eat new partnership. 

Subscriptions 

Seven in ten Brits cut their subscriptions to services across the board, including home and beautify, grooming, food boxes, entertainment.