Australian online retailers find delivering goods on time and retaining customers the biggest challenges.
In a survey of online retailers conducted by CouriersPlease, 63 per cent of respondents said delivering to customers on time would continue to be a challenge this year. Almost half (48 per cent) of those surveyed said they felt pressure to deliver within shorter timeframes.
A further 46 per cent of online retailers said ensuring customers return and continue shopping with them was an issue.
Despite these challenges CouriersPlease CEO Mark McGinely said there was a lot for online retailers to feel positive about.
“While there is pressure in Australia’s retail industry due to the rise in e-commerce and arrival of online retail giants such as Amazon, Australia’s retail turnover rose 1.2 per cent in November last year, with online retail sales contributing 5.5 per cent of all retail turnover—the highest ever recorded,” he said.
Local retailers must remain competitive
With local retailers feeling the pressure to compete with Amazon on delivery times, Australian start-up Go People is one company offering a solution. The crowdsourced courier service grew its monthly deliveries by 600 per cent over the past 12 months, attributing the increased demand to retailers wanting to match or beat Amazon’s delivery options.
Go People founder and CEO Wayne Wang said the company’s delivery services help smaller retailers fight back against the online giant.
“Local retailers are already feeling the ‘Amazon effect’ with the market’s disruption pushing them to evolve,” he said. “Retailers are realising they need to deliver the best possible purchasing experience for their customers to stay relevant.”
In a survey of Australian consumers, Go People found the decision to shop with a retailer was often more about delivery speed (41 per cent) than the ability to touch and feel the product (33 per cent).
“We’re becoming a nation of on-demand shoppers, with one in two noting the importance of same-day delivery when deciding where they shop,” said Wang. “Local retailers need to ensure they delight their customers throughout the entire purchasing experience to remain competitive.”