Transcription:
Radosław
Hello everybody, and welcome to another episode of our podcast. Today we have Hayley from Makes You Local, and we will be discussing the UK market. So Hayley, welcome to our podcast.
Very nice to have you here. And I would be very grateful if you could say a few words about you and your role at Makes You Local.
Hayley
Yes, thank you for inviting me. Yeah, as you said, my name is Hayley. I am the Head of Customer Success and Localization Specialist for the UK with Makes You Local. Makes You Local helps webshops succeed not only in their own market, but also when launching into markets all over Europe. We help localize.
We have tech and tools to help companies succeed, whether that’s with our native teams doing customer service. We do translations, we localize webshops. And also we help them create roadmaps and strategies in order to make sure they’re succeeding in these new markets. So we do that all across Europe, as well as the UK, all up into Scandinavia. And yeah, so that’s my role there with the company.
Radosław
Thank you. Thank you very much. Yeah, we’ve spoken also with Henrik and with Donatas. So we know that you are present in the whole Europe — it’s really amazing. And the UK — I’ve seen your webinar, which you hosted recently. And I also prepared myself, and I see that it is a top three — it’s a very big market, with very large e-commerce opportunities. But on the other hand, of course, there are stereotypes that it’s a little bit hermetic, closed. How would you say — is it a market worth fighting for? Entering and selling your goods?
Hayley
Yes, it’s definitely hard. I’m not going to say for smaller businesses coming from Europe that it’s easy to get into the UK — because that’s not the case. You have a lot of competition, of course, being the third leading e-commerce market in the world after America and China. So, really, really big market. But once you are in there and gain really great brand awareness, you can then do really well. So I think the really important thing here is making sure you do your research, making sure you have a good plan for launching — because it can be very expensive as well. Especially if you’re a small brand, small business that has no brand awareness in the UK. You know, that is a tough position to be in if you want to do well. So, coming up with a really good strategy and making sure that you’re well-prepared before going straight in. And there’s no reason to say that you won’t succeed. There is competition, but it’s definitely a great market to be in once you’ve cracked it.
Radosław
Yeah, great to know, because, as I mentioned, the stereotypes are strong — so we need to fight with them and discuss how it really is. Also, there is one word which is coming up recently — Brexit. How did it affect the market and what challenges does it bring to companies, for example from Poland or other countries in the EU?
Hayley
Yes, several challenges that we’re still facing since Brexit. Now there are custom duties and VAT implications that weren’t there before. So this leads to higher costs for customers when they’re buying from Europe, longer delivery times, also increased custom checks — which can be really frustrating for customers. Many UK consumers now, when buying from the EU, already expect to get these fees. They kind of have some expectations now when they’re ordering from EU countries — things like import taxes, delivery surcharges that are now in place. And as I said, longer delivery times due to customs. It’s kind of accepted now, I guess, since Brexit, but yeah — it’s definitely a really big issue for UK consumers. They’ll read your delivery and returns policies carefully. They’ll see: “Okay, this is an EU company — does this mean I’ll have to pay a lot to receive the product? Will it take long to arrive? What about returns?” These are really high priorities for UK consumers. You definitely have to really localize your website. You need to think: should we implement a local returns address, just to support fast returns policies in the UK? Because they expect that to be quick as well.
It’s… yeah, it’s just how it is now.
Radosław
It’s, yeah, it’s just, it’s how it is now, but for people who aren’t based in the UK, you really have to think here, how clear can you be on making sure that the customers can get their products fast? And also what is your return policies?
Hayley
It’s really important and vital that you have a good setup for that, that allows you to be fully transparent to the UK customers.
Radosław
Great to know to prepare yourself, but as a British, did people get used to the British people that Brexit is and this is a normal way of living right now or there are some, I don’t know… still voices that maybe it was a wrong decision, it would be better to stay at the European Union. I mean more business-wise than historical-wise, because this is the topic for us.
Hayley
Yeah, I’m not going to go into whether people regret the Brexit. I know that this topic is gentle, so I’m trying to make it as delicate as I can. But really, yeah, so obviously a huge whirlwind since Brexit, people backtracking, regretting their vote there. But I definitely think they’ve lowered their expectations and are prepared a little bit more to have a complicated buying process if they’re buying abroad. But I think because of Brexit, people are opting more to buy local and buy from UK webshops or at least webshops that function in the UK. It’s mostly for cost as well. Costs are more predictable, delivery options are more reliable.
Yeah, I think if businesses are offering that full transparency, clear communication with the consumers, they can keep the customers. I think, yeah, they expect the longer times from the EU, but at the same time, they would still prefer to have those fast, efficient delivery and return procedures. You’ve really got to think about that if you’re going to launch in the UK.
Radosław
You are saying about keeping the customers and I, when I was preparing myself, I got to the conclusion that British customers are pretty loyal to the brands. Yeah. How would you describe this? Is it like they even can pay more because they are loyal to their brands or UK brands or other brands or…? Because when I said, when I’ve spoken with Henrik, he said, they are loyalty, loyalty, but price is the main factor.
So how does it look in the UK?
Hayley:
Yeah. I mean, of course loyalty is a big one, especially if you’re someone who they… another brand they don’t know. Why would they stop purchasing in the stores they have known for a long time and go to you?
It’s really important to constantly deliver your high quality, customer expectations. This goes with your customer service. This means your delivery times. Are you reliable? Are you pulling through and not just kind of exaggerating those delivery times or maybe there’s unexpected costs that you’re not being clear about?
I think what’s really important for the UK consumers is having that full transparency and being realistic.
They’ll appreciate it so much more if you’re sticking to what you’re saying on your website.
So keeping that full transparency, really good customer service — that’s a big one for the UK.
We value that high quality customer service. Being proactive. If you have problems with delivery or if you have anything that’s occurred, be proactive, reach out to your customer first. They really show that you care then and that is gonna increase your brand loyalty completely. Yeah, full transparency, having customer support… All means of customer support within the right business hours, 24/7, use AI, get your live chat bot — things that mean that you’re always on call for your UK consumers. They really respect that.
And they’ll keep coming back to you time and time again, as long as you are being consistent and keeping that great customer support. Yeah, you’ll definitely gain some loyalty for sure.
Radosław
Yeah. So is it worth it? It’s not only that the price is a factor. It’s always worth to show the value of your brand.
I wanted to talk about another channel, because you can show your value and your brand when you have your own shop — stationary or internet shop. But the huge potential in your case is also in marketplaces.
It’s a little bit more difficult to play with your brand. But how would you say, because a lot of customers are — not afraid is a big word — but not convinced that going with their own shop at the first moment is a good way.
So they decide to go with marketplaces. I’ve seen reports and I also heard in your webinar that the most popular are Amazon, eBay and Etsy. Would you be so kind and describe to us how the situation goes and what should the consumer consider while deciding that marketplaces are their first approach?
Hayley
The first thing I’ll say is it’s mostly to do with what the consumer is looking for. So Amazon is their preferred marketplace because it’s really fast delivery. They have a wide range of products. eBay is more like secondhand, looking for bargains — that kind of consumer. And then we have Etsy, which is more like handmade, personalized items. Each platform there — although all three very big — they have their clear guidelines and what they offer to customers based on their speed and their price and what you’re looking for.
So competing with these — particularly with small businesses — they really have to now show what makes them different to the other big players that are on these marketplaces. So I know it is tough, yeah, but it’s finding what your niche is, what’s your niche product. Do you have something that’s going to set yourself apart from these other companies? Is it your amazing customer service? Is it your really good price guarantee? Or your delivery methods or something? What’s something that will set you apart from these other brands is what small businesses need to think about. A lot of them do go to marketplaces, because I find in the UK — in most cases — it is unavoidable just because you have that huge market awareness. You’re going to gain a lot of trust from UK consumers as well. So although small companies are using marketplaces, you don’t have to rely solely on them. It’s good to get a wider audience — get yourself in a marketplace — but building a strong brand and your customer loyalty can go through your own website as well and direct sales channels.
You can still start on a marketplace. Don’t expect to like be completely flying on it. But the point is — you’re reaching a broader audience. Customers can go on your website, but if they know you’re selling on Amazon, it adds that extra added value and trust in your product as well. So big things like using social media, having subscription deals and models — which is also really increasing in the UK. So creating that loyalty through subscriptions, if your product fits that kind of model. Also creating loyalty programs as well, which will help your customer gain customers — anything that you can do to stand out. So like I said, you could have superior customer support or something that will set you apart from these other companies. But in terms of marketplaces, 65% of the country is shopping on them. We find most UK consumers will choose to shop on a marketplace because they can find all their brands under one roof. And compare — yeah, and compare them — which is a big thing. So price is a huge thing as well, particularly with the economy of the UK and everyone trying to save money at the moment. Being able to price compare — Amazon is a great example for that.
And also they have very small basket sizes in the UK. So you’ll find because the delivery is so quick, it’s free — free returns — people will just buy one thing. So they’re just buying small things all the time, rather than having like a big purchase once a month. So that’s the kind of behavior of the UK. It’s fast. They’re very impatient when it comes to online shopping. They want things quick. Marketplaces can cater to that.
So that’s why they’re just so popular.
Radosław
Very interesting, very good to know what you said — that certain marketplaces are for certain companies and certain types of business. Another type of strategy, which also Polish consumers have — for example, with Allegro, the biggest marketplace in Poland — is that the products, even if you have them on your own site, you can buy them on the marketplace to have free delivery. For example, it’s Amazon Prime — you are a subscriber, so you have a free delivery. For example, you have the same price as in a normal shop, but you have a free delivery. So consumers go for that. So definitely it’s a thing worth considering for the customers moving there. But also when I’m thinking about the marketplaces, I’m thinking about those which are not very… currently very popular but not well welcomed in some areas — for example, like AliExpress or Temu. And I think about the translations which are there and I’m getting to the next point which I wanted to ask you how to prepare the translations for the products and for my shop when I’m entering UK because most of us speak English.The English we speak, mean, people outside of UK is slightly different than British English, which you are using as a native ones. So what companies should focus on and how they should prepare their store in the area of translation?
Hayley
Yeah, absolutely. Localization is key in the UK. Just like you said, everyone can pretty much speak English and if you can’t, you know, AI can write anything. What’s really important is not just to focus on localization, it’s not just the translation. It’s about adapting things that the UK consumers can resonate with where it makes sense. Otherwise, you know, it’s almost just pointless. So small things like, of course, British spelling, things that are different between the US and England, even small things like your cart, which is your basket, you know, things like this that you need to make sure is localized to the UK. Yeah, spelling, regional preferences. You know, the UK is so vast and it’s so different between the northerners and the southerners.
And I think just being able to relate a lot to who your audience and who you’re selling to. The UK consumers really value that. That is up there with the top points of trust when you’re localizing your website.
So not just translations, highlighting holidays, special events, you know. I said in my webinar, you gonna also do something for St. Patrick’s Day and celebrate with the nation? Like things that’s really gonna gain that local touch to your brand. And yeah, just ensuring the tone is appropriate for the UK consumers.
Anything like this would really gain, first of all, the trust, but also engage your consumers. They’ll follow all the way through to check out if your website flows and just makes sense to a UK consumer.
Full localization of your website is just so important.
Radosław
What should, on the other hand, what should raise a red flag? How to see that localization was poorly made or is not appropriate? How to see that? What are the signals?
Hayley
Any American spelling. Pricing, if it’s not listed in pounds, that’s a big one. A lot of companies I’ve seen in my experience, they’ll just, „Let’s go to the UK and we’ll just keep to euros.” Things like this, just small things, but that’s a big one. Also, failure to account for UK-specific regulations like your VAT. Are you including this in the shipping? Are you looking at whether the value of the basket is more or less than 135 pounds?
Are you gonna pay for the VAT? Is this going to be something that’s included? Just really making sure that you’re understanding what the UK consumers are looking for. And I will tell you, they are looking to see if all fees are included. They don’t want those unexpected ones when it’s arriving on their doorstep. So yeah, really making sure you’re understanding full regulations of the UK as well.
Radosław
Good research.
Hayley
Good research. But I would also say, just to touch on the last thing here, is also the payment options.
So PayPal is the leading payment option in the UK. Over 80% of people are still using PayPal.
So if you don’t have that on there, that’s also a bit of a red flag for UK. But also, same as most countries in Europe, having the Apple Wallet, Google Pay, Apple Pay – they’re all really big as well. So yeah. Poor localization – massive red flag.
Radosław
Massive red flag and a lot of things to talk about. I assume that you’ve seen a lot of poorly localized webs. It makes you local. But you mentioned VAT and this currency. What other local regulations may affect the retail sales in the UK? Are there any specific that we should focus on in the beginning? Because I know that there are a lot to be researched, that are reviewed, but maybe some kind of basics which you would say that they are crucial for any business while entering the UK.
Hayley
Yes, you have to comply with consumer rights laws. So that’s all things that will cover things like your return policies and refunds. Data protection is really big in the UK – it’s actually crucial. So you have to follow the GDPR standards. And also VAT – that’s the big thing now. Because since Brexit, all the new customs and duties and requirements for cross-border sales – that have all come into play. So I think you really have to do research and understand it. Also, always keeping on top of it and making sure that you’re up to the standards of the cross-border sales. Now it’s quite good – you can always hire an external company these days.
Logistical companies can also handle these things for you. So when you are coming across from another country, you can partner up with these companies, and they can really help ensure a smooth connection between shipping and selling into the UK. So that’s really helpful. But it’s always good as a business owner to do your research, call me up – we can go through it all with you. But yeah – just keeping up to date with the standards and regulations – really important.
Radosław
And about doing the research and even using a help of companies like yours, what would you say would be the best strategy or effective strategy of promoting your business in the UK while entering?
Hayley
Search engine optimization, so the SEO. That’s a really great place to start because most shoppers start their journey on Google. So paid advertising, Google ads, social media platforms as well. Using Facebook and Instagram is really effective. Email marketing is still popular, but it’s the influencer marketing that’s growing, especially for the younger audiences. That’s really where people dig into your brand and get to know it the most. So make sure you’re active on your social media. Localized content, of course, that resonates with the British culture – not just using your generic ads that you have in your home market or in other markets.
Make sure you’re localizing those ads to appeal to the UK consumers. You really want to have the most engagement from your UK consumers. Localize, localize.
Radosław
OK, so it’s more or less the same as in other European areas. The social media are currently the big player, the big place where everyone should be. So it’s also very popular in the UK. Something came to my mind because you can promote yourself, but there are still these global events which are happening – like the pandemic, like the Ukraine war. How does it affect the UK market? It’s said that you are on the island, you’re far away, but…
Is that this thing affected you?
Hayley
Yes, I would say it has. Since the Ukraine conflict, there’s been more of an impact on the supply chains and of course, energy prices. So this has had a huge increase of costs for businesses and consumers in the UK.
Everyone’s really trying to cut down. Now it’s summer, it’s a bit different, but going into winter, I definitely know with the energy prices going up, people are a bit more cautious when they’re shopping online.
They’re a lot more price sensitive. As I mentioned before, they’re more inclined to shop around, not just buy the first thing they see. So focusing on price is big. Price along with reviews – those are the top things I would say for UK behavior. The conflict in Ukraine has not helped with people’s way of living. They’ve got to heat the house. Definitely their priorities have changed a bit since then. Anything value for money.
Radosław
And the pandemic restrictions – were they as strong as in continental Europe? And did they affect business that much? For example, in Europe, there was a really very big growth in the e-commerce market because the traditional shops were closed. So everyone started to run their own shop and there was a very big boom of small e-shops rising. So how was it in the UK?
Hayley
It was the exact same. And ever since the pandemic now, people have just got used to that way of shopping.
So it’s gone up completely – particularly shopping on your phone. So making sure that your webshop fits both desktop, mobile, and also click and collect. These are really big ways of shopping now, particularly since the pandemic. People are just more inclined to do home deliveries. If you can provide a click and collect service – that’s amazing as well. That speeds things up and also makes things cheaper for the consumer if they can buy and then collect from store or a pickup point. Yeah – home shopping, easy shopping on your device – that’s on a huge increase for the UK.
Radosław
I don’t know if it’s the same, but for example in Poland it touched older generation – people who before didn’t use their mobile or computer for buying, they were used to traditional shopping. Reports say that they started doing that – I mean the 50+, or something like that. As you said, habits stayed, yeah? So they touched it, they tried it, they saw that it’s okay, and they stayed with it. Was it the same in the UK?
Hayley
The exact same. I think that just went all through Europe. It was the same for everyone. Now they just find it so convenient. And the fact that using mobile phones has been on the rise since then, and how easy it’s become to shop on your phone – making the steps so simple: a few steps and you’ve bought it. From your Apple Wallet or payment wallet to how easy the click-throughs are to shop on web. Just one click.
Radosław
Just one click.
Hayley
Yeah, just one click and you’ve got it. And like where you have a package at your door – that’s the expectation that Amazon set up now. So yeah, you can order in the morning and in the afternoon Amazon’s at your door.
It could not be more easy. anddaughters teaching their grandmother – like it’s so easy, you can just all do it online. So yeah, it’s definitely stuck since the pandemic, for sure.
Radosław
Yeah. You are repeating this mobile, so it’s very important. But how would you describe, I don’t know, the three biggest characteristics of the UK e-commerce market? How would you name it? The three biggest trends or three biggest words describing e-commerce in the UK?
Hayley
Price-driven. Marketplaces – we’ve obviously touched on that. Sustainability is on the rise.
That’s also becoming trendy now. They are trying to find eco ways of shopping and packaging and everything like this. If you have an option that says „this is eco-friendly”, people actually go for it. The one thing that actually I could compare with Scandinavia is: Scandinavians would actually pay extra for sustainability, whereas people in the UK – they would choose it, it’s trendy, but paying extra for it is another thing.
I think that’s still yet to be defined and changed. Sustainability – of course – on the rise.
I would also say: omnichannel is really big in the UK. Just a seamless shopping experience – that they can buy and collect.
Just again to add up – I’m saying next-day delivery because that is quite important for consumers.
But if you don’t have next-day delivery, it’s also okay.
A lot of people come to me like: „It’s not possible, we can’t do next-day – how can we compete?”
But I think being transparent and being able to tell your consumers: „No, it’s going to take two to three days” – as long as you’re actually honest, it’s okay. As long as you’re not saying „next day” and then delivering in three – that’s a problem. But if you’re transparent – it’s fine. So if I could break down the top three things that UK consumers would pick, it’s:
- Price
- Reviews and research
- Delivery and returns
They’re the top things I look for. They’re the trends of the UK.
Radosław
And you touched my next point, which I also have seen and listened to in your webinar. But maybe you will say a few words for the people who didn’t see the webinar – the customer reviews and the comments.
You said that they are very important. You even used the phrase that it’s not good to enter this market without the comments. Can you tell us a little bit more about the approach of British customers to the reviews and to their opinions?
Hayley
I would say – majority, in the 90% – of UK consumers will all read reviews before making a purchase.
This goes a lot into how they research. They shop around for the best price – and same goes for reviews.
Because if you do have all this competition, why would they choose one over another? You go to the reviews.
Anything below a 4-star rating – actually, they don’t go for it. Trustpilot is really big. So having a really good Trustpilot page and lots of reviews – UK consumers love it. These really boost your conversions.
Getting those strong ratings – good and bad. If you only have good ones, it’s almost like a red flag for the UK – like something must be wrong here.
The point is: get those reviews and make people trust you that way. Finding out that your delivery will be within the time you say. If you’re not – I can guarantee: you’ll get lots of good reviews when everything’s good, but way more bad reviews when things go wrong. So keeping that full transparency and honest business policy – all the policies need to be honest, and you need to stick to them. Because the UK market is tough.
They will come at you, and they will write bad things. So yeah – keeping your reviews good, above a 4-star rating – yep. And then you’ll be fine.
Radosław
It’s very, very good to know that – especially when there are companies which are operating, for example in Poland or another country, and they don’t have this functionality. It’s a signal for them to start thinking about it when they want to enter. I’m thinking about this British customer. We know that he reads reviews.
I know that he uses mobile. How would you describe wider this typical British e-commerce consumer?
Hayley
Sorry – describe a classic consumer?
Radosław
How does the classic consumer look like? Is it a rather older person? Is it a rather younger person? Is everyone buying? Or is there a central group?
Hayley
Everyone is buying. As we mentioned before, it’s becoming so much easier now. So I think we can also add the older demographic here. Of course, the young ones are tech-savvy now – they’re all shopping on their phones, that’s the big one. They want it fast. They want it reliable. They want easy-to-navigate websites. So I think: keep it as simple as possible. Plain, easy steps. Quick shopping. They definitely want to see videos. They want as much product knowledge as possible, but not to be bombarded with information. That’s why videos are really on the rise now.
If you have videos to show your products – that also helps with getting purchases and increasing your conversion rate. Sustainability – as I mentioned – is on the rise. Loyalty programs as well – offering anything that you could subscribe to, or collect points – anything that keeps people wanting to buy more. And good customer service – that’s what our e-commerce consumers want. That’s what they’re looking for.
Really good customer service. So that also ties to all age groups. Particularly with the middle-aged and older demographic – they want to feel like they’re being heard, valued. So they are looking for that good customer service. That’s our classic consumer in the UK.
Radosław
Thanks for the wide explanation. Sorry if I didn’t explain it correctly – but this is what I was looking for.
What we should focus on while deciding to go for the British market – how to meet the expectations of the customer. And you said a lot of things which shop owners need to focus on – I mean the reviews, the videos and so on – these are kind of investments if they didn’t do it until now. But do you see any other operational or financial challenges for the companies which would like to enter the British market that they need to anticipate and prepare themselves for?
Hayley
Yeah, I think shipping logistics — we go around this a lot in the UK, only because of Brexit and because I know it’s an issue for most businesses. And this is actually one of the reasons why people are almost too afraid to go into the UK — because of the cost of shipping and logistics. So with the new customs and delivery delays, it’s definitely something you have to factor in. You’ve got to go through now and think: how much are you making per order in your home market? Break down all the costs here and include perhaps more — a higher return cost — you’re now putting into going into the UK market, because people do return a lot more than other countries in Europe. Yeah, logistics — do you need to have a warehouse? Holding warehouse in the UK — that’s going to add extra cost.
You have to really break down your costs a lot more and just have in your mind here before you launch in the UK that there will be extra costs when it comes to returns, deliveries, your customs duties — they will add on.
So you need to kind of incorporate that now into your budgeting.
Also complying with UK regulations and VAT, consumer protection laws — these can all add to costs as well. I’m hoping when you do go into the UK, of course you have a way larger market to sell to, but yeah, you have to incorporate these prices in and decide if it’s the right market for you. Because, you know, the costs are there, so you have to think about it.
Radosław
Yeah, it’s a little bit more difficult because some of the European Union laws apply, but some not. And this may generate additional effort — operational effort — and the costs, of course. So this is something worth considering.
Another point on my agenda was the returns. You’ve said a lot about that. So we know that the preferred method is free return — but is it common? Because I’ve been in a conference currently and one of the companies was saying that yes, customers are expecting the free returns, but for example in the fashion sector, even half of the companies offer the free returns. So how does it look in Britain? Does everyone have free returns, or is it like customers desire it but companies are not doing that?
Hayley
I would actually say the opposite for fashion — because fashion in the UK, the majority is free.
It’s that fast fashion industry that you’re in in the UK. If you’re not giving your customer a really easy, simple returns process — so if you’re not including the return label, having a UK returns address — just these two things really actually change a consumer’s mind and that makes them abandon their carts. So I think, yeah, most people are doing it. And if you’re not — as I said before — you have to be really transparent,
because they will second guess it, and they will also change their mind if they think: „Oh, you know, I’m not going to try this new company. I will probably have to return it. I’ve got to pay…” just as much to return it.
It is actually looked at in most cases before they make the purchase.
So right now, consumers have the right to return an item for any reason within two weeks, but actually a lot of retailers are offering a longer returns window as well — just to stay competitive. So it is definitely a competitive market when it comes to the delivery and returns. I think if you’re a large brand in your home market — let’s just take fashion here, because it’s the biggest industry for e-commerce — but if you are a well-known brand, people would still take the chance and they would order from you. What’s really important here to minimize the returns is to make sure your website is fully stocked with all product details. Get those videos on there. Make it really clear before they make the order if it’s going to be the right size — be really accurate: true to size, runs small, runs big. Make it as clear as possible and make sure your customer service is live, ready to chat 24/7. Make sure you get those pre-order questions before they make the order. And then they’ll feel more confident to place an order, knowing that, „OK, maybe I don’t need to return this.”
And it also matches with the reviews. So if people are getting the clothes and writing reviews saying,
„These all came, the sizes were completely wrong, sent it back, found out it was £10 to return” —
you know, all this negative stuff. And then it’s a snowball effect. Then you’ve got the reviews and then you’ve got… So yeah, I think companies are prioritizing these return methods. Setting up a UK warehouse — you know, you don’t have to set up the warehouse, you can just have a return address. People can return their products there, and then you can bulk ship them back to your base. So that way, you’re having less custom imports and exports, and your consumers are happy because they are getting their refund a lot quicker — because it’s arriving into the UK warehouse. So things you can do to just help speed this up — without having to completely set up a warehouse — you can just have a returns address.
Radosław
I’m glad that you are saying this in a positive way. You are giving the tips on what to do to decrease the return rate. Because on the conference I mentioned, it was said that especially fashion companies — due to ecological reasons or due to the higher costs — are making it harder for the customers to return goods, because they have a real problem. The amount of the returns is very big. People are buying, as you said, fast fashion — so they are buying 10 things, leaving one and sending back nine. And the company has a problem because a lot of clothes cannot be sold again. So they need to utilize it or destroy it even.
Hayley
I’ll just say here though — it’s amazing the amount of people who return. I think there’s something like 72% of UK consumers will return something. We’re known as serial returners. You’ve got to bear in mind — people will order 10 things and send back nine.
Radosław
Yeah, it’s worth knowing. Because like I said, there is a threat — especially in big fashion companies — that they are making it harder, or they even want their returns to be paid some kind of amount of money.
So they need to know that in the UK it’s not a good decision.
Radosław
Another point is — we’ve also covered it a little bit — this delivery and payment methods. So payment methods you quite widely described — so PayPal, Google Pay — they are very popular. But let’s focus a little bit on this delivery method, because you said that the most important is the next day delivery. But are there any preferences among the UK customers about — I don’t know — the company who is making the delivery?
Do they prefer the British companies, or it doesn’t matter? It may be DHL, may be DPD, or another courier which is global?
Hayley
Royal Mail is the most trusted. So that’s like the classic British courier that everyone trusts.
So if you have Royal Mail as an option, people will choose it. But I will probably say nine out of 10 times — in fact, maybe even 10 out of 10 times — that’s not free. So if they want it to arrive on time, if they want the good service, then they would choose that — but normally that would be paid. Then you have the cheaper options, which is „Evri”, which is the old Hermes — which I will tell you — they already know it’s got the worst reviews.
Never on time, parcels are lost, they’re thrown on the side of the road or chucked over the fence. But people choose it because it’s normally the free option. So that’s normally the cheaper way to go — that’s Evri.
DPD is also a really popular one as well. But thinking about these couriers — they’re also thinking, „Okay, yeah, I’ll get it on time, yeah, it’ll arrive on my doorstep or whatever.” But also, they’re already thinking about returns. So DPD and Evri — they’ve got over 7,000 drop-off locations across the UK — that’s petrol stations, convenience stores — so they can easily just drop the package off. Royal Mail has something like nearly 12,000 post offices across the UK, which makes it so convenient for them to just drop their parcel off when they want to return it — or pick it up if it’s at the post office. So these are the top ones I would say that are trusted. There are of course smaller ones — Yodel and the ones that are smaller — but yeah, I think if you have the trusted, the top three names on your list, then at least they know, „Okay, I’ve heard about this,” or „I’ve read the reviews,” and then it becomes like, „Okay, this is the standard, I’m going to have to complain because Evri is going to be delayed,” and write a review — and it’s the same process. Yeah, having a trusted courier — Royal Mail is great. And people will definitely say, „Royal Mail — great, they deliver on a Sunday,” or like…
So yeah — making sure you have a good list there, and also just giving them options. So if there’s a few options there — that’s even better. It’s the consumer being able to choose: „I need it tomorrow — I’m going to pay for Royal Mail,” or „Okay, I don’t need it desperately — I’ll pay for Evri because I know they’re going to be late.”
Radosław
Okay. And the parcel machines, because in Poland it’s a very popular method — the company InPost.
They even entered UK market, I haven’t seen their recent reports, how was it successful or not.
But in Poland it’s very popular that you order and they… they leave it in the parcel machine and you go at any time you want and you pick up the package. Is it popular in the UK? Is it on the rise?
Hayley
I don’t think it’s as… I mean, we have them — they’re all over. But I think because we have that post office…
Yeah, they are on the rise. I can’t say they’re not — they definitely are. I know in Poland you have them everywhere. Yeah. But… Yeah, they’re on the rise. It’s adding to that convenience. You can go any time of the day. So if the post office closed, you can’t pick up your parcel.
Radosław
Yeah, that’s the reason. Yeah, because the post office is until, for example, seven o’clock and you are working until seven, so it’s closed.
Hayley
But we’re talking more bigger urban kind of areas. Like, a lot of people in the UK are also, you know, not close to a city or a big town. So they’re not going to have that option to go pick up from there. Yeah, they’re definitely more like in the bigger built-up areas. And then, yeah, they have the home delivery or drop-off at the petrol station or a convenience store pickup — that’s still popular.
Radosław
Yeah. So we should consider it while entering this market. Okay. So last question. You also mentioned about it a little bit — so the seasons. Yeah, we have these general seasons which are for the whole Europe, but you also mentioned that there are specific seasons in the UK which a potential seller should focus on because
it can bring him better income. So would you be so kind and describe a few such seasonal moments in the calendar where the seller may anticipate — I don’t know — higher selling rate or something like that?
Hayley
Yeah. To be honest, it’s similar to other EU markets — there’s nothing that stands out here. Black Friday and Cyber Monday are really big — just as big now as it is in the US. People actually are holding off buying and waiting for Black Friday and Cyber Monday. So that’s a really big e-commerce advantage to… get your deals on. Also: Christmas shopping, Boxing Day sales — that’s huge in the UK. And I’d probably say, you know, the classic: back-to-school season, Valentine’s Day, Mother’s Day — you know, all the classic. That’s — it’s completely the same as the EU. But I would probably say: Environmental Day, like Earth Day — that’s also becoming quite popular. Making eco-conscious shopping decisions and… buying on those days as well, because a lot of businesses are really trying to promote being more sustainable. Yeah, and it really adds to the UK shopping around for best prices. They are more than happy to wait for these big shopping days where they’re going to get some big sales. So making sure you’re on top of those — because that’s what they’re waiting for.
Radosław
Yeah, and you mentioned also St. Patrick’s Day, yeah. Probably it’s for beer mostly, but…
Hayley
It’s beer — it’s still showing that you’re celebrating. For St. Patrick’s Day, we’re doing this — we were adding something on. It’s like, great — this is another reason to celebrate. And the UK loves a reason to celebrate something. „Let’s celebrate together — buy our products.”
Radosław
Yeah, exactly.
Hayley
Just being on their side and knowing when the nation is also having a party and having a celebration — and jumping on that. Because… when your consumers are happy, they’re going to be happy shoppers, aren’t they?
Radosław
Yeah, of course. So with this positive aspect, thank you very much for coming, Hayley. This is all I’ve had in my agenda for today. Is there anything you would like to add from yourself for the companies that are targeting the UK market — any encouraging info or something?
Hayley
Like, oh, we’re saying all of that… you know — go for it! No, I think it’s really important: just get your plan right. Sort your finances. Do a cost breakdown: Is it worth it? Is it the right market for you? What will set you apart? The UK — you’re going in, you’re heading up against all these competitors, marketplaces…
You need to have a really good strategy before going in. So this is something I do all the time — roadmaps and strategies for helping businesses first get started — because that’s the tough part. Keep localizing. Prepare and prepare, yeah. Prepare, prepare. You could just go for it — maybe it doesn’t work — but I think:
Make sure it is the right market. I know it’s an exciting market to be in, so I get why people have the interest.
But yeah — have a good plan first.
Radosław
Have a good plan, and if you don’t know how to do it, just… contact us and we will help, of course.
Hayley
Exactly — just let me know.
Radosław
So thanks a lot — a lot of useful knowledge for me and for our listeners. So I hope it will help the people who are undecided to make the decision. Really nice having you here — and see you next time, I hope.
Hayley
Thank you very much.
Radosław
Bye.
