UBS: Online retail distribution coming under pressure

There is a familiar pattern within the retail sector: stagnant in-store sales combined with ever-higher levels of online sales. But there are clear signs that the distribution side of the equation is coming under pressure. The cost of delivery, returns and logistics has now soared to 75 percent of costs of the average distributor, raising the question as to whether “e-Christmas” will prove viable in the long run, reported UBS.

The firm identified five factors that are placing increasing strain on the e-commerce supply chain: volume, fulfillment, land, labor and ESG.

To read the report, click here.