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As we reach the last day of Q1, we reflect on the peaks and troughs and trends, that these first three months have brought to the logistics and e-commerce industry.

 January: Brexit

January marked the beginning of post-Brexit life for Britain. Whilst the complexity of cross border trade was never going to bring with it the simplicity that was felt from previous trading arrangements, the confusion of unclear rulings was felt by consumers, fulfilment services, courier providers and merchants alike. This first month of life after the trade-deal saw a considerable plunge of more than 40% in UK goods exported to the EU. The Office for National Statistics also said goods exported to the bloc fell by £5.6bn, while imports fell by 28.8%, or £6.6bn. As the uncertainty continued so did excessive courier delays disrupting the end-to-end fulfilment over Europe. Excessive charges and tariffs left some smaller EU retailers to cease trading to UK customers, whilst other merchants continue to distribute their orders without amending their VAT.

Whilst regulations and the future of Brexit life has become marginally clearer, our very own Mark Elward is on hand to give his top three tips on how to navigate the murky waters of trading in a Post Brexit world:

  1. Research the origins of all your goods & ensure your products have the right commodity codes.
  2. There’s no one-size-fits-all approach to this, look at which method of selling works best and makes the most sense for your business.
  3. If moving goods into NI, register with the Trader Support Service and check out their Northern Ireland Customs & Trade Academy.

 

February: Retail

The demise of the high street has been a looming cloud that shoppers and retail giants alike have seen looming over the horizon in recent years, but it wasn’t until February of this year did we see the high streets first casualties arise as the pandemic only fast-tracked those struggling businesses towards early closure.

Earlier this month 15-year-old online fashion retailer Boohoo acquired the Debenhams brand and website in a deal that cost the label £55m. The 242-year-old department store was already in the process of closing before administrators found their new buyer and marks a changing of the guard for UK retail. Two weeks later, online marketplace ASOS obtained Topshop. The high street staple fell victim to changes in consumer habits and trends. ASOS, currently worth $12.2 billion, purchased the Topshop, Topman, Miss Selfridge and HIIT brands but neglected the physical sites. The £295 million deal split between brands and stock comes after Sir Phillip Green’s retail empire, Arcadia, announced they had gone into administration last year.

 

March: Roadmap out of Lockdown

March marked the month that many of us in the UK have been waiting for. As of the 29th, it’s now legal to sit outside with five friends, or two households and in just two short weeks we’ll see non-essential retail stores and gyms opening their doors, as well as pubs, restaurants and cafes welcoming customers for outdoor dining.

As many of us have spent the past year, working, shopping, and socialising from home, our dependence on all fulfilling such past times relies totally on eCommerce, but as restrictions are lifted, what will happen to the habits we’ve obtained in this time?

Research conducted in October 2020 indicates that 80% of UK consumers are likely to continue shopping online, whilst 74% said they felt most comfortable with eCommerce shopping and just less than half of those asked, 41%, would feel comfortable shopping in stores again. To ensure eCommerce success in the post-pandemic future, retailers should be thinking about how they can combine their physical and digital channels to create the most beneficial omnichannel experiences for their customers.

Huboo are an award-winning outsourced fulfilment provider based in the UK and mainland Europe, you can view their services here.

We’ll see you in Q2!

 

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Monday, March 29th marked the launch of the UK’s road out of lockdown but as life starts to return to normal, what will happen to the habits we’ve absorbed since the pandemic began? 

 The popularity of eCommerce retailing was on the increase before COVID-19 hit the globe, reaching 16% of all retail sales in 2019 and expected to rise further. Since the pandemic saturated our lives, the demand for online shopping, especially in FMCG categories like groceries and clothing has skyrocketed.

 What have we seen in the past twelve months?

 Many of us have spent the past year, working, shopping, and socialising from home, our dependence on all fulfilling such past times relies totally on eCommerce. Without lockdown rules to adhere to, consumer habits naturally shift and evolve. With quarantine restrictions, these organic habits have fast-tracked at great speed, with some researchers declaring this shift in behaviour towards a near-total online dependence, has been accelerated by five years. 

 According to US Commerce Department figures, last year eCommerce sales hit $791.70 billion, up 32.4% from $598.02 billion in the pre-pandemic world of 2019. That’s the highest annual online sales growth of any year, more than double the usual 15.1% year-over-year increase. 

 Of course, this increase in online purchasing largely benefits digital retailers. The convenience of shopping via eCommerce platforms also favours the consumer. Future purchases can sit in a basket until the buyer is sure they want to spend their money and when logistics partners are operating faultlessly, items can be delivered the next working day. Returns are also easier with courier services, such as Hermes, now offering a ‘pick up returns’ option. However, what eCommerce sellers can’t mimic is the atmosphere and social opportunity that physical stores bring. So, which is the winner? Online sales are expected to increase by 14.8% each year until 2023, while the growth of brick-and-mortar sales will only increase by 1.9%. 2019.

What will the online future of post-pandemic life be like?

 Fulfilment services and eCommerce businesses have been some of the few winners to emerge from the pandemic. Research conducted in October 2020 indicates that 80% of UK consumers said they’re likely to carry on shopping online even when it’s no longer our only option. 74% of people say they felt most comfortable with eCommerce shopping and just less than half of those asked, 41% saying they would feel comfortable shopping in stores. 

Current pandemic life makes omnichannel offerings not only favourable to businesses but now a necessity. For many companies giving their shopper an integrated shopping experience, otherwise known as omnichannel retail, is the next logical step for increasing sales, improving customer relationships, and enhancing revenue. This combining of the physical and digital creates greater options for merchants. For example, translating collected data to create a personalised shopping experience for consumers, like those found on Instagram shopping pages.

For eCommerce success in the post-pandemic future, retailers should be thinking about how they can combine their physical and digital channels to create the most beneficial omnichannel experiences for their customers. Staff, entrepreneurs and consumers alike will all play an active role in enhancing fresh shopping experiences that are set to stay.

 Huboo are an award-winning outsourced fulfilment provider based in the UK and mainland Europe, you can view their services here.  

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29/03 International Courier and Delivery Service Update COVID-19

Huboo aims to keep you informed regularly regarding all international deliveries out of the UK during the COVID-19 pandemic. Despite most domestic services resuming normal time-frames, the majority of international couriers and services are still being affected. Couriers are receiving higher than usual demand – similar to that of the usual peak periods in Q4, however without preparation, a reduction in air travel, changes to transport procedures (eg. various border controls) and/or changes in delivery procedures in the destination country (e.g. quarantine) – they are all seeing delays across most international items and services.

We will continue to monitor the situation closely and want to reassure you that we are continuously working with our courier partners to limit the impact on your business during this challenging time. As delays and disruption continue in almost every country in the world, we will do our very best to keep your goods moving as quick as possible.

We will keep this page updated as often as possible with weekly reminders via our newsletter.

Below is a list of links to each couriers’ COVID-19 International delivery service report:

 

DPD International Delivery Service Report

DPD International Delivery Service Update COVID-19

Here’s the link to DPD’s latest service updates.

 

Deutsche Post International Delivery Service Report

Deutsche Post International Delivery Service Update COVID-19

Here’s the link to Deutsche Post’s latest service updates.

 

Royal Mail International Delivery Service Report

Royal Mail International Delivery Service Update COVID-19

Here’s the link to Royal Mail’s latest service updates.

 

P2P International Delivery Service Report

P2P International Delivery Service Update COVID-19

Here’s the link to a recent excel doc from P2P with their latest service updates per country:

FIC_COVID – 19 Daily Update 15.03.2021 External

 

DHL International Delivery Service Report

DHL International Delivery Service Update COVID-19

Here’s the link to DHL Express’s latest service updates.

 

We appreciate your patience during this testing time and will continue to keep you updated with any further news we receive.

If you have any further concerns feel free to get in touch.

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What’s New With Huboo: March Edition 

Welcome to your monthly instalment of What’s New with Huboo. This month saw the promise of a roadmap out of lockdown, the prospect of which has many of us ticking down the days for a taste of normality. The first two months of post-Brexit life are behind us, and at Huboo we’re looking forward to moving into our brand-new headquarters!

Top Industry Stories This Month

UK to EU exports has fallen by 40% in the first two months following the Brexit transition, while total exports of goods fell by 19.3% from December 2020 to January 2021. Monthly UK production fell 1.5% in January which was 5% below February 2020 levels – the last month of normal trading before the pandemic.

Royal Mail has responded to an unprecedented twelve months of demand by introducing a Sunday parcel delivery service for major retailers as the surge in demand for more “frequent and convenient deliveries” grows. The seven-day delivery service for major retailers is set to respond to the marked increase in parcel volumes and changing customer expectations. Royal Mail deliveries peaked in Q4 of 2020 which saw 496 million parcels delivered.

The Tech Nation Report 2021 has arrived. The report details how UK tech pioneers are shaping our coronavirus recovery – and the proof is in the data. Bristol and Bath have ranked third in the UK for tech investment, and it’s been a record year for the industry!

Dashboard Updates 

Big projects are happening in the HR department including a new HR system that will make all day-to-day activities super seamless!

Our tech team are always working hard to streamline your Huboo experience. Let’s check out the latest ways they’ve made your fulfilment journey just that little bit easier this month…

  • EORI Number

A new field allowing an EORI (Economic Operators Registration and Identification) number to be entered has been added within the reworked VAT Information section of Billing Information on the Dashboard.

  • Listings not with Huboo

When moving a listing from ‘Listings not with Huboo’, a warning prompt will appear to notify you if that SKU already exists. You’ll continue to have the ability to create the listing and duplicate that SKU, as well as go back and remove it if needed.

  • CSV Import – Listings

Improvements to bulk import for Listings. Additional new fields now support: Sale Price, Cost Price, Customs Description, Country of Manufacture and Commodity Codes.

  • Customs Sales Price

Users can add the sales value they wish to be declared to customs on the export of goods. Customs Sales Price is optional, but any value entered here will be submitted to customs as the item sales value. This will override any sales price from Channel(s) if applicable. – wait for confirmation

For those of you in the UK, don’t forget that the clocks go forward this weekend. Hello British Summertime!

Of course, for those that celebrate it, next week is Easter and with that that comes a four-day weekend! We hope you enjoy the time off and fingers crossed for nice weather so we can all enjoy our hour of permitted exercise…

Remember to check out our blog and socials for daily updates on all things Huboo.

See you next time!

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It’s been another rich news week across the UK, from marches to wedged ships, to retail giant John Lewis announcing the closure of four stores, we’re going to dive into the world of industry news.

$9.6bn of Goods Are Being Held Up By a Stranded Ship

Since Tuesday, the Japanese-owned Ever Given cargo ship, operated by a Taiwanese company, Evergreen Marine, has been wedged at an angle in Egypt’s Suez Canal, causing a blockage of $9.6bn of goods a day. For four days the container ship, the size of four football fields has been unable to be freed, despite desperate attempts to loosen its bilge. The Suez Canal is one of the busiest export routes in the world, with 12% of global trade moving through it daily. On Tuesday there were 100 ships waiting to pass, that figure has now risen to 185, these include bulk retail carrier and crude tankers. With some experts suggesting it could take weeks to free the stranded ship, maybe don’t hold your breath on that next day delivery parcel. 

Royal Mail Trial Sunday Deliveries

Royal Mail has responded to an unprecedented twelve months of demand by introducing a Sunday parcel delivery service for major retailers as the surge in demand for more “frequent and convenient deliveries” grows. Nick Landon, chief commercial officer at Royal Mail, noted that “the last year has reset so many customer expectations and the desire for even more convenient and even more frequent parcel deliveries has certainly been one of them.” The seven-day delivery service for major retailers is set to respond to the marked increase in parcel volumes and changing customer expectations. Royal Mail deliveries peaked in Q4 of 2020 which saw 496 million parcels delivered. 

Barcode stamps trialled by Royal Mail 

In more Royal Mail news, the history of the postage service can be traced back to 1516 with the position of ‘Master of the Posts’. Fast track to 2021 and the delivery service is having a makeover. For the first time, the 500-year-old stamp is seeing the addition of a barcode, to make every stamp unique. The initial pilot scheme will see the new-look barcodes appear on around 20 million 2nd Class stamps and forms part of Royal Mail’s ongoing modernisation drive aimed at bringing even greater convenience to its customers.

Amazon in Europe Welcomes over 1,000 new sellers a day 

Since the beginning of the year, Amazon Europe has seen 115, 453 businesses join the marketplace. The figure equates to roughly 1,461 new companies a day and 40% of worldwide sellers. The ongoing surge in eCommerce behaviours gives thanks to the continuing global pandemic and irreversible changes in consumer habits. Most new sellers have joined the Amazon marketplaces in the United Kingdom, the Netherlands and Germany. We spoke about the recent rise in FBA acquisition groups, read the article in full here.

This week plays host to Power Up Week here at Huboo. Our friends at Rich Insight provide online marketplace services, strategies, and solutions for your business, with minimal risk. You can check them out here. 

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2020 was the year a new kind of business was born: Amazon seller acquisition companies. The eCommerce boom brought on by the covid effect, saw retailers closing their physical sites to operate solely online, and others, taking the opportunity to take their entrepreneurial skills to the test and entering the world of start-ups. So, what role did FBA play in all of this? 

How FBA works   

Fulfilment by Amazon, more commonly known as FBA is a business model where businesses acquire successful Amazon sellers before scaling them up. Ecommerce sellers take advantage of the corporation’s vast warehouse space to store and ship the products that merchants sell through their virtual store on the Amazon website. Most customer service issues take place through Amazon and sales profit gets transferred to the seller’s every two weeks. 

How the acquisition model works 

Most of these companies operate through buyouts. They buy the Amazon account and intellectual property from a seller that has generated a healthy profit and has overall proven to be successful, for example, the original seller turning over 3 – 4.5 times its annual net profits. Sometimes an acquisition company will offer a revenue-share model with the seller; sometimes the seller will exit the picture entirely, the acquisition company takes on the purchased Amazon brand and personalises it to become a new brand.  

In Europe, there are several companies focused on Amazon Marketplace seller acquisitions. In November 2020, both Heroes and Razor raised 55million and 25 million euros to acquire and scale Amazon brands. In 2021, the US-based company Thrasio recently fortified its leading position in Europe through the acquisition of Bonstato, and the promise of more eCommerce businesses to come. The company which has now reached ‘unicorn’ status increasedits budget to expand over Europe. The Berlin Brands Group also invested 250 million euros and Branded raised 124 million. 

While this model isn’t new, many buyers are taking advantage of last year’s surge in eCommerce, with over 25% of brands believing the pandemic has led to a ‘technical revolution’ for the retail industry. As we head towards the inevitable demise of the high street, many sellers are taking their brands online. Independent sellers are met with the chance to claim a percentage of their new post-acquisition earnings, whilst others see a direct cash injection and the chance to be elevated of the pressures of operating your own business. 

Even though acquiring Amazon businesses is still a novel concept, it foreshadows a broader shift in what it means to sell on Amazon. Most think of these sellers as small businesses. But as more capital saturates the acquisition space, it isn’t hard to imagine sellers launching an Amazon business with the idea of selling it to a larger company in just a few short years.  

Looking for an alternative to FBA?Huboo are an award-winning outsourced fulfilment provider based in the UK and mainland Europe, you can view their services here.   

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Testing new regions with marketplaces

Marketplaces now represent 62% of global eCommerce sales. It is of course well established that with the majority of eCommerce taking place through these sites, they can provide a wealth of benefits to sellers through incremental revenue and increasing brand awareness. However, your marketplace strategy doesn’t necessarily need to end there…

Global expansion

Many sellers are looking for new markets to explore as selling to Europe becomes more challenging, but this can be a daunting concept. Expanding your online presence to new regions can be a complicated and high-risk project – borders/territory set up, logistics, brand engagement and localisation can provide more roadblocks than expected.

What if there was a way to reach a new market with minimised risk? Sites with an established customer base, local fulfilment and already set up to support international sellers? You can guess where this is going…

Marketplaces can provide an incredible platform to litmus test new regions and allow you to qualify demand in multiple markets before committing time and budget to establish a committed in-market presence. The search traffic on marketplaces will far outweigh any search on a brand site – for example,

63% of consumers start their search on Amazon in established markets, with a further 25% starting on other marketplaces. The platforms themselves are well experienced in supporting international sellers and will often have logistics and fulfilment services themselves or well-established partners who will be able to ease the transition. Although some sites require further local translation/localisation, many will allow you to upload data in English and some even provide translation as part of the platform. As a steppingstone for expansion, marketplaces are often an ideal solution.

The far-reaching benefits of this approach go beyond reducing barriers and complexity – working with an established partner in-market, who has already provided a route to market for you, can also alleviate the need for further spend going forward. Often you can spend huge amounts of time and resources on setting up on your own through partners or your own eCommerce proposition in territories that may end up as not the right fit, despite it being a strong ‘on paper’ proposition. The marketplace approach means the cost of failure is significantly reduced – and there is a value in knowing what doesn’t work, as well as what does! Equally – if the channel does work, it creates a clear business case to build more around this channel and start thinking about your own eCommerce and B2B strategies in these regions.

How to get started

Once you have a shortlist of regions, it’s worth exploring the local marketplace options as well as the bigger players; smaller marketplaces are present across the world and in some regions they perform at the same level as or outperform Amazon. The World’s Top 100 Marketplaces is a good place to start, with vertical-specific sites also included. Take note of any seller requirements (e.g. a local return address) and any fulfilment support that sites can offer, these could have a big impact on your bottom line. It may be worth considering a number of different fulfilment options as you establish to what level you wish to outsource.

Getting your name out there

When getting started in a new region, it goes without saying that you should look into leveraging marketing opportunities on the marketplace platforms that are enabled e.g. Amazon PPC. Beyond this, it’s important to grow brand awareness outside of the sales platform itself. Locally targeted social media marketing can be a great way to grow your brand presence with a relatively low budget. If your test sales grow well, this can also provide a great base for your first-party expansion.

Looking for more info?

At Rich Insight we have years of experience working with marketplaces and we’re well placed to support you in both marketplace selection and onboarding – we support sellers across 200 sites and 34 regions. We make use of our in-house marketplace specific analysis tools to help establish the right marketplace for your business – then we’ll help you get set up and do much of the heavy lifting in managing your live account’s day-to-day.

Get in touch with Rich Insight (sales@richinsight.co.uk) to see how they can help or take a look at their blog or their website more generally for more on finding the right marketplace for your business.

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Gaining traction for your business is the most important part of setting up and running a successful enterprise. No matter how great your product or business idea, how lean you can operate or how big you’ve grown already, more capital and financial leverage will always inevitably be a necessity.  

Before Getting Started 
 Traction refers to the progress of a start-up company, as the business grows so does its traction. Thankfully, in today’s world, there’s an increasing number of ways a fresh company can get noticed and connect with potential investors. Understanding your investors before you ask for money is vital.  

 For the average entrepreneur, raising money can be an entirely foreign experience. Given that you’re dealing with financial professionals, your inexperience can put you at an immediate disadvantage. To mediate such a drawback, do your homework, understand your investors to ensure you’re in front of the right people and that they understand their priorities.  

Consider such factors as: 

  • Their career background  
  • Previous investments  
  • Their preferred stage of investment  
  • Size of investment  
  • An expected return  

Three ways you can source investment for your business

1.Online fundraising platforms

In recent years, our social media and internet usage has reached an all-time high. This surge in spending time in the digital sphere has led to the birth of online fundraising platforms with investors and funders taking hold of these new ways to deploy capital. Popular UK venture opportunities include UKBAA, AnglelList, SeedInvest and crowdcube. 

 2. Events  

Many businesses successes can be attributed to visibility, physically getting noticed and talking with investors, much like the age-old sayingit iswho you know. Attending events is a great way to achieve this and get ahead of the queue. Try to find out who is attending the event ahead of time and schedule meetings to be productive and have your pitch ready. 

3. Apply to Accelerators 

Most major cities have programmes or open invitations for start-ups and entrepreneurs to apply to join the programme. Once accepted the benefits rang from a cash injection straight into your business, to introductions to industry experts and investors as well as business advice and fundraisers. Here’s a list of 181 business accelerators for start-ups in the UK.

 

Once you’ve got the investment, how to ensure you keep business booming

 Just like many other things in life, businesses go through cycles of growth, stagnation, and decline: repeat. It can be a common occurrence for some companies that start well to hit a solid wall, and then beginning to fail. Losing focus of your company vision, inconsistent branding, remaining in the ‘safe zone’ and neglecting key clients all add fuels to the flames of a stagnant business. Luckily, noticing the signs that your business is losing its momentum is the key to prevention. 

 Outsourcing fulfilment is a keyway to elevate some of the pressure felt by start-ups and smaller enterprisesHuboo are an award-winning fulfilment provider based in the UK and mainland Europe, you can view their services here.   

 

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International Courier and Delivery Service Update COVID-19 22/03

Huboo aims to keep you informed regularly regarding all international deliveries out of the UK during the COVID-19 pandemic. Despite most domestic services resuming normal time-frames, the majority of international couriers and services are still being affected. Couriers are receiving higher than usual demand – similar to that of the usual peak periods in Q4, however without preparation, a reduction in air travel, changes to transport procedures (eg. various border controls) and/or changes in delivery procedures in the destination country (e.g. quarantine) – they are all seeing delays across most international items and services.

We will continue to monitor the situation closely and want to reassure you that we are continuously working with our courier partners to limit the impact on your business during this challenging time. As delays and disruption continue in almost every country in the world, we will do our very best to keep your goods moving as quick as possible.

We will keep this page updated as often as possible with weekly reminders via our newsletter.

Below is a list of links to each couriers’ COVID-19 International delivery service report:

 

DPD International Delivery Service Report

DPD International Delivery Service Update COVID-19

Here’s the link to DPD’s latest service updates.

 

Deutsche Post International Delivery Service Report

Deutsche Post International Delivery Service Update COVID-19

Here’s the link to Deutsche Post’s latest service updates.

 

Royal Mail International Delivery Service Report

Royal Mail International Delivery Service Update COVID-19

Here’s the link to Royal Mail’s latest service updates.

 

P2P International Delivery Service Report

P2P International Delivery Service Update COVID-19

Here’s the link to a recent excel doc from P2P with their latest service updates per country:

FIC_COVID – 19 Daily Update 15.03.2021 External

 

DHL International Delivery Service Report

DHL International Delivery Service Update COVID-19

Here’s the link to DHL Express’s latest service updates.

 

We appreciate your patience during this testing time and will continue to keep you updated with any further news we receive.

If you have any further concerns feel free to get in touch.

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Our latest Huboo round of all news, views, and interviews from the world of eCommerce, fulfilment, and logistics. 

  Imports from the UK dropped by over 900 million 

Imports from Great Britain have dropped by more than 900 million since Brexit. December 31st marked the end of the Brexit transition period, bringing an end to the free movement of goods between Great Britain and the EU member states. Now new data from the Central Statistics Office (CSO) show figures have dropped 65% to just 497 million in January of this year compared to the same time last year.  

CSO senior statistician Orla McCarthy said, “Other factors identified by traders were stockpiling of goods in Q4 2020 in preparation for Brexit, substitution with goods from other countries, and a reduction in trade volumes due to the impact of Covid-19 related restrictions throughout January.” 

Amazon’s bricks and mortar  

Earlier this month grocery shoppers saw a watershed moment as Amazon opened its first-ever physical site, a supermarket. Tried and tested technology including cameras and depth-sensors monitor shoppers inside, who merely add items to their app basket and paid virtually before leaving the store without even heading to a checkout. If high street giants can’t afford to keep their storefronts open, why is the online marketplace giant, making the move from clicks to bricks? 

Amazon has already seen success in its physical stores in the USA and hopes to replicate this in Europe, this is seconded by reports that the global firm will look to create 30 stores across the UK. 

Piplsay, a global consumer research platform, surveyed 6,005 Britons to see what they think about the tech-heavy retail concept. 

  • 17% of Britons have visited an Amazon Store before (9% in

London); 86% were happy with their shopping experience 

  • 54% of Britons think Amazon Fresh will be a threat to top

grocers like Tesco 

  • 39% of Britons say they prefer less tech-heavy retail stores or online shopping over Amazon Fresh stores

Tech Nation Report 2021 

The Tech Nation Report 2021 has arrived. The report details how UK tech pioneers are shaping our coronavirus recovery – and the proof is in the data. Bristol and Bath have ranked third in the UK for tech investment, and it’s been a record year for the industry!  

Gerard Grech, founding chief executive, Tech Nation, says, “This year has highlighted the UK tech sector’s enormous resilience and world-beating innovative spirit. In the face of a major global crisis, it has not only survived; in many areas, it has boomed.”  

This is an exciting time for the fulfilment and tech industry, here at Huboo we can certainly second Grech’s comments and look forward to what the future has in store! 

If you’re looking for help with your eCommerce fulfilment needs, find out more about how Huboo can help you here.   

Have a great weekend!  

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