Yet another report has found that Australian businesses are struggling to close the gap between customer demand and local retailers’ delivery capabilities.
Research from Temando, which surveyed retailers and online shoppers, shows that price continues to be an extremely important factor for both groups when it comes to shipping.
It found that while 65 per cent of consumers said they had abandoned their online cart due to high shipping costs, 61 per cent of retailers struggle to manage the increasing cost of carrier rates.
Free shipping was a big drawcard for shoppers, with 65 per cent willing to increase their basket size to qualify, but only about 26 per cent of retailers reported using ‘free shipping with a minimum spend’ as a conversion tactic.aid consumer demand for seamless shipping is growing, and consumers are willing to switch retailers to get better service.
Up to 57 per cent of shoppers said they would buy from a competing store if a retailer failed to provide a shipping option that suited their needs.
A negative shipping experience is enough to put off 59 per cent of customers from shopping with that retailer again, while 80 per cent would repeat purchase if they enjoyed the shipping experience.
“Shipping is sometimes overlooked in favour of marketing and packaging, but as we enter a post-Uber age, it isn’t just a ‘back end’ issue anymore, but a front and centre priority to enrich customer experience and fuel growth,” Hartmann said.
Innovation needed but not apparent
As customers become used to the convenience of on-demand services like Uber and at home food delivery, Hartmann said it is important that retailers show the same level of innovation.
Consumers want highly convenient shipping options such as the ability to request a specified time slot (50 per cent), same-day (41 per cent), weekend or after hours (44 per cent) and hyperlocal (37 per cent). However these were found to be offered by less than a quarter of retailers.
“New alternatives to standard and express delivery have been largely unmet this year compared to 2016, which opens up enormous opportunity for retailers to re-imagine their retail operations and create meaningful, cost-effective customer experiences,” said Hartmann.
The survey also showed that a relatively small number of shoppers use their mobile device as their primary shopping tool (23 per cent) but 65 per cent engage in webrooming—looking online, buying in a physical store—and 51 per cent practise showrooming, which is looking in a physical store and buying online.
Want the latest retail news delivered straight to your inbox? Click here to sign up to the retailbiz newsletter.