Packaging prices are rising but online retail is booming
According to industry experts online retailers will be facing a rise of packaging recycling costs in the time before Christmas. While online retailers will sell more this Christmas than ever before, they will also face a rising recycling bill. Internet sellers depend on effective packaging to ensure that their goods reach consumers in usable condition, but they must ensure that a certain percentage of that packaging is recycled.
Most of todays online-shops use recycling schemes, which have to make sure that an equivalent amount of the same material that is used is also recycled. According to Adrian Hawkes, the director of policy for the UK’s biggest recycling scheme operator Valpak the falling commodity prices are driving the cost of this activity up.
60% Rise in packaging costs
Estimated that the cost to UK industry of recycling packaging could increase by 50% this year because of this hike, from £100 million to £150 million. He also said that the rise would make it less likely that the UK reach its packaging recycling target this year of 60%.
Booming online retail
But on the other hand analysts are predicting that in spite of the economic slowdown, 2008 is still going to be a big year for online Christmas shopping in the UK, as everyone is turning to the web to save time and money. Research suggests that more shoppers than ever will look for their Christmas gifts online in 2008. Last year’s phenomenal online retail results, with a suggested £5bn in the fourth quarter of 2007, saw a growth of nearly 40% from the previous year. CapGemini has said that UK consumers will spend more online this Christmas than ever before, despite predicting a fall in overall retail sales. It said consumers would spend £13.16 billion in the last three months of this year.
Christmas day shopping
Another very interesting phenomena is the Christmas Day shopping. Whilst the shops were already closed on the 25th December, four million Britons went online in 2007 and spent £84 million. So all businesses that haven’t got an online-shop are missing out on a huge slice of the Christmas retail pudding.
More online customers in between the ages of 40’s and 50’s
One of the reasons for the increase in online Christmas sales is that older Internet users between the ages of mid 40’s and 50’s are beginning to use the Internet for their own online shopping. Previously, this age group didn’t shop online but as the UK’s population becomes more Internet savvy, a greater number of older customers are buying their Christmas presents online. Despite the rather undeniable financial crisis, online sales continue to rise and this Christmas will be no different. Don’t expect deserted High Streets this year though, the key figure for 2008 is that only 17p in every retail pound is currently being spent online. This figure is set to rise year on year, leading to the conclusion that this is just the beginning.
Parts of this article were taken from the SEO blog and out-law news.
