Online Retailers Sleepwalking Their Way To Christmas Disaster

Published 21st November 2005

most retailers have failed to learn from Christmas past and run risk consumer backlash...

The bulk of online retailers are failing to prepare for the Christmas rush, despite predictions that this year will break all records for gifts ordered over the Internet, according to new research.

Only two out of ten of the leading transactional websites have posted details of final order fulfilment dates on their websites, following last year’s damaging reports of failed deliveries, according to Conchango.

The problems could also be exacerbated by the extra pressure being exerted on the postal delivery system over Christmas. Last year, Royal Mail delivered 66.1 per cent of first class letters on the following day between 1 and 21 December, against a target of 92.5 per cent - although these targets are suspended over Christmas.

“Online retailers have made some incredible headway in encouraging consumers to do their Christmas shopping online over the past few years,” said Paul Dawson, head of user experience at Conchango. “The danger is that all this good work could be wasted if the industry builds a reputation for failing to deliver on its promises.

And there’s nothing that will damage corporate reputations more than a young child staring forlornly at an empty stocking on Christmas day.”

Many firms also run the risk of being unable to fulfil orders for popular gifts such as the Microsoft Xbox 360, again running the risk of a consumer backlash, warned Conchango.

Dawson continued: “The temptation is to take orders even if retailers are unsure as to their ability to deliver. This short term thinking risks long term disillusionment, with core customers potentially leaving them for good if they fail to come up with the goods.”

“It’s a matter of controlling, then delivering on the hype. It’s vital that online retailers put the processes in place to ensure that presents make it under the tree in time for Christmas. Not only should they clearly outline final order dates for Christmas gifts but also review back-end systems so that the fulfilment process is as streamlined and efficient as possible. Any bottlenecks in the supply chain that could delay delivery must be identified and ironed out now ready for the inevitable online Christmas rush. Retailers who fail to deliver this year will find themselves left out in the cold next Christmas.”

More consumers than ever before are expected to shop online this Christmas, boosted by the spread of broadband and cheaper prices.







About Conchango http://www.conchango.com
Conchango was established in 1991 to deliver business solutions through the effective and innovative use of technology.

A business technology solutions provider - it looks internally at its clients’ organisation to extract more value from existing technologies and processes or look at new ways to improve the way clients interact with customers and suppliers. Clients also look to Conchango to support them in future technology investment decisions.

The company focuses on three main areas: Streamlined, Multi-channel and Mobile business.

Its consultants are skilled in both business strategy and technical innovation, in order to deliver an integrated solution that addresses each clients’ specific needs.

Conchango’s approach is to focus on initiatives that deliver the greatest tangible improvement for their clients’ business. This is achieved by breaking projects down into three-month chunks, to support the delivery of measurable results.

In 2003, Conchango won the Information Management Award and was awarded the Microsoft Certified Partner Award for best business intelligence solutions.

Conchango’s main market areas are Retail, CPG and Financial Services. Customers include; Marks & Spencer, Bank of Ireland UK Financial Services, Tesco, Debenhams, Britvic Soft Drinks Ltd and Lloyds of London. Its strategic partners include Microsoft, BEA, Tridion and Vodafone.

Headquartered in the UK, Conchango has offices in London, New York
and Boston.






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