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.
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.