New technologies and strong ongoing growth in online shopping is fostering a transformative period in Australia’s logistics sector.
From real-time parcel-tracking technology, electric delivery fleets and advanced route optimisation, to parcel hubs with smart lockers and automated parcel sorting systems, recent innovations are vastly improving the way Australians receive parcels. Carriers that heavily invest in technology while focusing on regional expansion will undoubtedly lead the pack.
Over the past four years, Australia’s appetite for online shopping has soared. Last year, an astonishing eight in 10 Australian households shopped online.[1] In the six months leading up to March this year, online shopping spending surged to nearly $32 billion across the country, a 12 per cent increase on the preceding six months.[2] For those with skin in the game, this has opened enormous opportunities, and more than a few challenges.
Since their launch in Australia, Temu and Shein have experienced incredible growth, with monthly shopper rates soaring by 32 and 34 per cent respectively between December 2023 and June 2024. Collectively, the two sites amassed nearly $3 billion in annual sales in Australia in the 12 months leading up to June.[3]
A recent survey by CouriersPlease asked Australian online consumers whether they had shopped at Amazon and Temu in the September 2024 quarter. The majority (71%) had made a purchase at Amazon, with 48 per cent making a purchase under $100. Temu was less popular, with 46 per cent having made a purchase in the same quarter, with 29 per cent having made a purchase in the last quarter. The results also showed the younger the demographic the more likely they were to make an Amazon or Temu purchase.
As Australia’s fastest-growing parcel and delivery company, CouriersPlease experienced record growth last year after parcel volumes surged by 20 per cent.[4] But while the E-Commerce wave has played no small part in that, we have faced logistical and delivery hurdles that have required big innovation leaps to enhance capacity and efficiency.
Meeting the demand: operational strategies and network expansions
While same-day and next-day delivery options are increasingly being rolled out among delivery partners, our research shows Australians value reliable delivery over ultra-fast options. Rather than same-day shipping, consumers are happy to wait a day or two to get the right product for the best price. And we don’t see that changing.
In fact, reliability, clear communication and real-time tracking are driving operational strategies across the sector. It’s why there’s an increasing shift to seamless online communication and self-service in lieu of text message updates.
Customers want to be in the driver’s seat when it comes to parcel updates, and they want greater visibility. To meet this demand, CouriersPlease developed CPDirect, a platform that enables direct interaction between customers and our business without intermediaries, catering to the expectations of digital-savvy customers.
On the sortation side, new facilities are equally undergoing a renaissance. Automated sorting systems that utilise machine learning to boost efficiency and reduce errors are both the present and the future. They facilitate CouriersPlease to handle higher volumes of parcels without compromising on service quality. Here we’re also seeing sustainable innovations take centre stage. There’s a significant onus on industry heavyweights to lead the green charge – and rightly so.
From encouraging customers to recycle packaging and developing more Green Star Standard facilities to integrating electric vehicles into fleets, we anticipate a major green pivot in the coming years. That’s why we’re investing heavily in sustainable technologies and processes across our facilities.
Connecting regional Australia
Regional Australia has traditionally been underserviced by couriers, with customers facing longer wait times and limited access to fast and affordable shipping compared with metropolitan areas. But this is changing, and it’s changing fast.
The online shopping wave has brought more customers from these regions into the fold than ever before, and retailers are hyper-aware of this burgeoning market. To meet this demand, couriers must expand and improve their networks in key regional hubs across the country.
At CouriersPlease, we’ve spent the past few years turning our focus increasingly to regional communities to meet expanded service area demands.
And that’s where our franchise model excels. We’re offering locals in these regions the opportunity to become business owners and setting them up for success with mentorship and ongoing support.
Challenges in expansion and delivering the future today
While expanding is critical to stay ahead of demand, it brings its own set of challenges. One of the most pressing issues we face is the shortage of human resources. With 180 territories immediately available due to our growth, we’re constantly on the hunt for quality Franchise Partners who are deeply invested in the success of their territories.
We’ve found this personal investment often results in superior customer service compared with models that rely solely on employee delivery drivers. And while the successful evolution of our delivery sector hinges on tech investment, the human touch is just as important.
Richard Thame is CEO of CouriersPlease.
[1] https://ecommerce-report.auspost.com.au/#online-share
[2] https://ftalliance.com.au/data/advocacy_attachments/3440_dcn0724_fta.pdf
[3] https://www.roymorgan.com/findings/9646-shein-and-temu-contintue-to-grow-strongly-august-2024
[4] https://www.couriersplease.com.au/resources/media-releases/couriers-please-expands-with-3-new-depots-amid-surging-parcel-volumes