News Pass the Parcel

Christmas is over.. but the effects on small businesses will last for a while.

January 9, 2023

We are still finding wrapping paper tucked behind the couch and under toys.

 

It will take weeks to really get the house back to normal and we are struggling to find space for all the new items we received or gave for Christmas this year!

It was a great one. We got to see all our family and friends, which we cherish more now we have passed through the worst of the COVID-19 pandemic (apparently).

 

It was tricky to find gifts at a decent price, we really pulled in our spending this year as a business and a family. Working with SMEs as a courier provider, I was always very conscious of the impact my choices were having.

We supported small businesses when Christmas shopping as much as we could but even with our understanding of the pressures on them to ship their goods, we did still sometimes need to look to the bigger distribution businesses to get what we were looking for.

 

Sadly, many people probably did the same. And this will have a long-lasting impact on those businesses, who were already struggling to survive.

Our choices have passed more pressure onto these businesses. This got me thinking about the day to day challenges and whether the short term gains while we struggle financially are worth the likely fall out for our economy once it has all played out.

 

Hope for the holidays

 

CityAM reported back in October that Office for National Statistics recorded over 50,000 small business has closed in London alone due to low footfall and increased running costs.

 

No doubt they were already feeling the pinch as we all tightened our belts at home, some choosing to heat their homes rather than eat out or splash out on a non essential item.

Most businesses were relying on a good festive trading period. Many are still in recovery mode following the covid pandemic plus larger organisations are passing pressure onto smaller business, squeezing their margins, applying unmeetable dispatch conditions and flooding their platforms with endless options which all look similar meaning consumers (me, on occasion) are simply opting for the quickest and cheapest option.

 

Getting a parcel from A to Me.

I see, I click, I wait.

 

BUT – it’s not always as simple as my provider popping an item in a box and heading to the post office. Even this, in recent weeks has been exceptionally challenging.

It’s often more complex. The item you purchased is likely part of a chain, you have to pass the parcel between handlers a few times, each time trusting it is being handled well and everything goes to plan. All the while, every one takes their slice of the profit.

 

Some handlers are quicker than others, some have better processing capacity than the next. If your shop owner uses a reputable courier, then things should go as planned, but if they have had additional orders or have been impacted by the recent overwhelm of the system then regardless of where the issue occurred, you end up with a late or missing parcel and this likely gives you pause for thought next time you place an order.

"This is exceptionally damaging to those businesses which, through no fault of their own, then need to compensate the customer and spend even more time and energy maintaining their loyalty and cutting further into the small profit they likely count on to go towards paying an electricity bill!"
 
Many would have worked through Christmas, despite desperately needing a ‘break’ as we all do. This issue extends further than consumer satisfaction and even the general economy London (1 million) and the South East (875,000) had the most private sector businesses, accounting for 34% of the UK business population). The added strain impacts mental health, which they will either seek help for – but find support lacking as the NHS remains in crisis.

 

The whole package

Consumerism is important to maintain a healthy economy, but we are forgetting the people behind the businesses. Mum’s scarf, Dads socks and the kids cuddly toys are all part of the fun of Christmas, but I myself will be taking more time this year to consider where I am buying from.

 

Whether that be gifts or business items.

I will also consider the balance between a great deal and what is realistically sustainable – I could order a 1000 pens and have them delivered before breakfast tomorrow, but is there somewhere else that will provide a better product at a reasonable cost? Do I really need it tomorrow morning?! Take a moment to reflect and you can help break the chain.

 

If you had a great experience from a seller this year, please take a moment to pass on your thanks. If you didn’t, let them know so they can properly identify what this issue is which will help them grow stronger in 2023.

 

Finally, I would urge you to support local and small businesses, pass them your order where you can and please be patient. It’s worth the wait.

 Thanks for reading!

Martin and the InXpress London-East Team

If you would like information about webship+ or our courier, import and export services, please get in touch with my team at [email protected] or call 0203 600 6006

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