UK eCommerce parcel volumes flat as electronics surge

UK eCommerce parcel volumes were broadly flat in the second quarter, according to Scurri's latest index, which showed year-on-year growth of 0.2% between April and June.

The data showed a clear split between product categories, with stronger demand for purchases tied to specific needs rather than discretionary browsing. Electronics recorded the biggest rise in parcel volumes, up 63.5%, followed by Tool & DIY at 23.2%, Sports Equipment at 21.7%, Homewares at 21.5% and Medical products at 20.6%.

By contrast, several consumer-facing categories declined over the period. Fashion parcel volumes fell 14.0%, while Food & Drink dropped 9.6%, Gifting declined 5.7%, and Pet products were down 4.4%.

Some of the changes reflected seasonal and external factors. Electronics retailers benefited from demand linked to major sporting events, while good weather supported spending on DIY and outdoor improvement projects.

Delivery trends

Speed remained central to online shopping behaviour. Next-day and Two-Day delivery accounted for more than four in 10 eCommerce orders, showing that rapid fulfilment continues to shape customer expectations.

Signed-for deliveries also increased, with Signature delivery volumes up 34.3% year on year, suggesting a greater focus on delivery certainty for higher-value orders.

The Fashion & Beauty segment showed a slightly different pattern. Next Day and Two-Day services made up almost 80% of deliveries in that category, while Signature services recorded the fastest growth at 36.8%.

Overseas growth

Domestic volumes weakened even as some export markets expanded. UK parcel volumes declined 2.9%, but retailers recorded stronger growth in several European countries.

Germany recorded the largest increase, with parcel volumes up 44.7%. Belgium rose 24.8%, France increased 17.9%, and the Netherlands climbed 16.4%.

The figures suggest that some merchants are looking outside the UK for growth as the home market becomes harder to expand in. The shift comes as competition intensifies and retailers seek more targeted sources of demand.

Scurri, an Irish delivery management software provider, now manages more than 200 million parcel deliveries a year for eCommerce merchants across the UK and Ireland. Its clients include The Perfume Shop, Butternut Box, Gousto and Bulk Powders.

"The headline numbers suggest year-on-year eCommerce growth was relatively flat in Q2, but that's not what retailers are experiencing. Consumers have become far more selective. We're seeing them spend with greater intent, while retailers are finding opportunities in specific categories, seasonal events and new international markets. At the same time, customers continue to expect fast, reliable delivery, making fulfilment performance more important than ever," said Rory O'Connor, Founder and CEO at Scurri.

"The findings suggest the next phase of eCommerce will be defined more by operational precision, with retailers needing to align stock, fulfilment and delivery strategies more closely to changing consumer behaviour. Those that can react quickly to shifting demand and execute consistently will be best placed to succeed," O'Connor added.