UPS underestimates online sales, delivers Christmas gifts too late | RetailDetail

UPS underestimates online sales, delivers Christmas gifts too late

UPS underestimates online sales, delivers Christmas gifts too late

American package service UPS has severely underestimated the amount of gifts ordered online: a large number of its parcels were not delivered on time for Christmas. Amazon, a UPS partner, has given its customers gift certificates and free shipping as compensation for the tardy delivery.

132 million packages

UPS previously announced it estimated some 132 million packages were to be dealt with in the week prior to Christmas. Nevertheless, the company lacked capacity to meet the demand, citing air capacity as the biggest problem. Competitor FedEx had no delay at all, but other companies like Wal-Mart also had to deal with delays. Amazon has said it will be investigating UPS’ performance in this matter.

 

Analysts had predicted that the total worth of all online purchases during the holidays would reach nearly 60 billion euro, a 15 % increase. Still, plenty of retailers were caught by surprise by the huge jump in online purchases in the days leading up to Christmas, which saw a 37 % spike compared to the same period in 2012. It is apparent that an increasing amount of people are willing to purchase their Christmas gifts online.

 

 

 

(translated by Gary Peeters)

Questions or comments? Please feel free to contact the editors


Amazon now delivers packages to car trunks

25/04/2018

From now on, Amazon delivers orders to the trunk of your car. The retail and technology giant has given its Prime subscribers access to get packaged delivered to the trunk of their car, without any additional costs. The service is currently limited to the United States.

Dutch Beate Uhse division not bankrupt after all

05/04/2018

German Beate Uhse’s Dutch subsidiary has not gone bankrupt after all and will continue its activities in both Belgium and the Netherlands. The company revealed the information itself after bankruptcy rumours surfaced.

Amazon often cheaper than Dutch competitors

03/04/2018

Products that are available on both Dutch web shops and Amazon.de, are cheaper at Amazon in about half the cases. Not only do Dutch stores compete with Amazon.de, which ships to the Netherlands, but there are also rumours that Amazon.nl and Amazon.be will soon become more active.

Trump targets Amazon

03/04/2018

President Donald Trump has apparently targeted Amazon as his new enemy. He feels the retail giant is taking advantage of the U.S. Postal Service, something he wishes to remedy with a series of new rules and legislation.

Amazon undisputed ruler of French online world

29/03/2018

Amazon is the undisputed leader of the French online world thanks to a 5.6 billion euro turnover and a 19 % market share. According to Kantar Worldpanel, the overall online market in France was worth 30 billion euro in 2017.

Retail is main driver of artificial intelligence innovations

29/03/2018

Retail companies will invest about 2.76 billion euro in artificial intelligence this year. According to research firm IDC, they are the main driver for AI worldwide, ahead of the banking sector.