Shopping for shipping
Published: 27 July 2017
It used to be a part of the online shopping process that was more of a ‘back end’ issue, but it turns out shipping has become a major centre selling point for online retailers.A study by shipping platform Temando has found that Aussie shoppers are fussier than their US counterparts, with most Australians expecting to pay a lower price on shipping costs.
Australians spent $22.23 billion dollars on online retail in 2016-17, however competition has started to heat up in the shipping department, especially with the arrival of e-commence giant Amazon arriving in Australia later this year.
According to the research Australian businesses are unprepared for the growing demands of Aussie customers who are wanting cheaper, faster shipping options and it’s taking a toll on business.
Out of 258 retailers and 1,279 shoppers, 65 percent of these consumers abandoned their cart due to the high shipping costs.
68 percent of consumers also said they would shop online more if free shipping was an option.
CEO and co-founder of Temando Carl Hartmann says its more about fitting in with how consumers live and work every day.
“The consumer wants more control of how they get a product and when they get it,” Mr Hartmann said.
“What our research found was that there is a widening gap between consumer expectations and what shipping experiences retailers are currently offering and this is really important for retailers because over 57 percent of shoppers will actually go to a competitor retailer if they can’t get the delivery options they’re after,” he said.
A negative shopping experience was also found to stop 59 percent of customers shopping with that retailer again.
“No surprise, but when a consumer has a positive shipping experience, in 80 percent of cases they will go back to that retailer because it really helps build trust and transparency.”
Mr Hartmann also says that Australians are some of the best educated in the world and due to Australia having such a diverse landscape, a range of options should be available to give customers the experience they’re after.
“What we’ve also noticed is every year the expectations around the range of delivery experiences is getting higher and higher and this is because consumers are getting better educated, but also there is a lot of new technology in the market which is also changing our expectations.”
Amazon is set to arrive in Australia in 2018.
Publisher of Power Retail and founder of Click Frenzy, Grant Arnott says the arrival of Amazon won’t have the impact most retailers are expecting.
“I think Australian retailers will be able to work in an Amazon environment pretty well and it’s going to take quite a while for it to have an impact and the fear everyone is expecting,” Mr Arnott said.
“Retailers who have a really strong bespoke type brand experience and a really individualised offering are going to still sustain their customers and have a good business.”
Businesses that will to struggle to compete with Amazon the most are ones that sell brands a number of other retailers are selling, such as electronics.