Postal Strikes Pose Threat To Small Businesses

Many fear high costs

Once upon a time, your humble author ordered a rather large television, and for the sake of free shipping, accepted a delivery target of about one month down the road.  But generally speaking, people want stuff they order to arrive promptly, and postal strikes in the UK are posing quite a problem for small businesses.

FSBThere are a lot of ways in which the strikes could cause things could go wrong.  Some folks, for example, may decide not to place an order in the first place, figuring that they should buy the product in person.  (And that means they’re more likely to visit a big, everything-under-one-roof type of store.)

Others might wind up returning goods that don’t arrive on time.  After all, if a Halloween costume shows up after October 31st, it’s a rare person who will just say "oh, well" and sit on it for a year.

Which brings us to the third problem: misplaced blame.  If a delivery goes badly, shoppers may associate the small business with the negative experience, regardless of whether or not it was actually Royal Mail’s fault.

Or small businesses could just incur large costs as a result of switching to a different service.

So here are some more tangible details.  The Federation of Small Businesses said in a statement, "In a survey of over 1,200 small businesses, nearly half (46 per cent) estimate the postal strikes could cost them between 500 and 5,000.  In the run up to Christmas, one of the most crucial times of year for a small business owner, four out of ten said that they could lose trade (42 per cent) and 40 per cent said that their business reputation could be damaged."

Let’s all hope the mail dispute is resolved soon.

There are 2 Comments. Add Yours.
  1. Shipwire provides storage and shipping for merchants out of our warehouses in the U.S., Canada and the UK. Not trying to sell…just giving you context.

    The Royal Mail “Industrial Action” (aka Strike) couldn’t have been at a worse time for most merchants.

    We notified merchants that this was coming and monitored it in real time. Honestly, if you were a U.S. seller trying to ship into the UK from the U.S. (think consolidated shipping and/or international), this would have toasted your business as a lot of carriers use Royal mail for last mile delivery.

    Merchants who had local order fulfillment partners stood a chance. Shipwire had multiple carriers integrated in the UK (none are as cheap as Royal Mail though) to provide alternate options. We ended up finding out two days before the strike happened that a local sort center was going to be management staffed so we bore the cost of getting our merchant packages to the sort center. The effect of that was almost no delay for merchant shipments.

    When you grow international consider partnering with an outsourced order fulfillment service. You get local market experience and we can definitely cut or eliminate your international shipping costs. More than that you will get a partner whose neck is on the line for you.

    You can see the whole timeline play out on our blog at http://www.shipwire.com/blog

    Nate Gilmore
    Shipwire
    http://www.shipwire.com/trial (free trial)

  2. Small businesses are already having a tough time particularly in this period of global recession. A postal strike would completely be devastating for an online business like mine if I was in the UK. Thank god in the USA we have several alternatives when it comes to shipping the cheapest two being UPS and USPS.

    Indeed late delivery can just result in merchandise returns and  could damage the business reputation. Just imagine you have a business meeting with very important potential partners and you arrive 1 hour late because of traffic problems,  say the problem we are currently experiencing at the Bay Bridge in the San Francisco Bay Area, CA, Well, you can say goodbye to that partnership for sure and I doubt anything would be left of that meeting.

    As small business owners, our businesses are just small cogs in a complex engine. Everything is brought to halt is any other part is not working properly.

    It;s bad enough we have high shopping cart abandonment rate because of shipping prices. If you finally get that client to complete the checkout and fail to deliver on time as promiss, you are toasted.

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