Fashion brand Matthew Williamson announced today that it was closing its London flagship to focus on e-commerce. While closing a high-rent store in favor of expanding e-commerce capabilities might look seem like a no-brainer, keeping up with consumer expectations when ordering online is a challenge. As shown in a graph from L2’s Insight Report on Shipping & Fulfillment, consumer expectations are often not met when browsing online. For example, 58% of U.S. shoppers abandon their cars because shipping costs were higher than expected.
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Amazon especially has raised the bar, and yet has not managed to make its shipping profitable. Just last year, it spent $6.6 billion on inexpensive, fast delivery and made just $3.1 billion in fees. This graph from the L2 study illustrates the raised expectations; the majority of retailers are able to deliver to the consumer in less than six days.

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