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AO boosts branded van presence

European online electrical retailer AO World has increased the number of deliveries of MDA (major domestic appliances) from its own AO liveried vans in the last year, boosting its brand presence the company said in its year-end results this week.

The company said it had continued to invest to create a delivery infrastructure that customers can depend on when they need it most – and that this had boosted its key customer metrics, such as customer satisfaction, as a result.

AO opened a new outbase in Bridgend during the year which it says will help to further improve delivery availability and services to its customers in the southwest, as well as reducing stem mileage and improving efficiencies in its logistics business.

It said its premium installation fleet, which not only delivers but also installs products for customers, had experienced strong growth over the period with improved lead times and an improving proposition.

The company’s logistics business also won a distribution contract with a new third party client during the year – a new focus for income streams for the company.

To improve product ranges AO said it has also added a second drop ship vendor to its infrastructure which it says has allowed it to increase its computing range and bolt on new categories to AO.com.

The company said this year will see an increased focus on third-party logistics which will also see investment in coming years too.

Warehousing costs in the UK increased by £2.7 million to £30million during the year, representing 4.4% of revenue. The increase included the full-year costs of two outbases opened in the previous year as well as the opening of the new Bridgend outbase.

Image credit: AO.com