Small package couriers enjoy Christmas boost
Small package couriers are reporting a big increase in Christmas shipments again this year as shoppers follow the worldwide trend of that has shoppers turning to the Internet to buy their holiday gifts.
?It is certainly higher than last year,? said Gordon Bussell, CEO of ZipX which is the oldest and largest small package courier on the island with more than 5000 active customers.
He equates the year-on-year increase in cargo volume at Zip-X as similar in pattern to what large American courier companies are seeing, which is about ten percent higher over Christmas 2004.
Steve Thomson, president of US Express which claims 4000 active customers, attributes a 50 percent year-on-year increase in his company?s Christmas shipments to more competitive rates, an increased advertising presence as well as the closure of Trimingham?s in July.
?There is no question that losing Trimingham?s which probably represented 15 percent of the Island?s total retail affected it, but the other thing important thing is our pricing structure to import things is so much less than it was a few years ago to ship things into Bermuda. You can get at two pound package in for $14 whereas a few yeas ago it was $50-$60. Now you can buy a CD and have it here for $14 and it is quick ? 48 hours it is here,? he said.
In the US, over 80 percent of respondents to a recent poll said they plan to purchase gifts on the Internet or via a mobile device during the holiday season. The findings are consistent with a similar survey conducted in the UK where 77 per cent of respondents planned to use the Internet and/or a mobile device to shop for Christmas. Pollsters Motricity and Greenfield Online said that based on those figures: ?Traditional retailers in the UK will likely lose up to 37.5 per cent of Christmas business to online-only vendors such as Amazon.com and eBay. And while only one-third of respondents believe that more discounted prices can be found online, these statistics show that mobile and online shopping are quicker, easier and hassle-free.?
Mr. Bussell said that while the loss of the Island?s largest department store is bound to have some impact on local shopping behaviour this season, Bermudians are simply part of that worldwide trend.
?Shoppers are tending to shop more online. It is not just driven by the fact we lost two major retailers, but it is just the way consumers are using the Internet more to do their shopping in general,? Mr. Bussell said. ?Lots of people are shopping and finding bargains and what they want for Christmas locally. It is really when they run out of ideas that they go onto the Internet or when they want something specific because it offers them a huge choice of course.?
Mr. Thomson adds that in general, online shopping holds appeal because people are busier nowadays and the Internet offers the opportunity to shop online at whatever time is convenient.
?Obviously the Internet offers a greater choice of styles, sizes colours,? he said. ?Even in the US when a mall is right down the road, people are shopping online and having it delivered so they don?t have to go out.?
However in some instances such as for electronics, price is key. No matter how competitive local retailers, he said that big retailers in the States are able to offer better prices on stock due to their significantly higher buying volume.
?Most Bermudians and this includes our customers will buy it here if it is easy and they can get it and the price is reasonable. We tend to shop outside of Bermuda for most things that are not readily available or higher ticket items because it is cheaper to bring them in,? he said citing as example, iPods, computers, sound systems, laptops which can be up to 30 percent less by bringing them in through his service.
