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Bad delivery experiences drive away over 80% Australian customers

26 May '23
3 min read
Pic: Shutterstock/kitzcorner
Pic: Shutterstock/kitzcorner

Insights

  • Around 81.4 per cent of Australian consumers are less likely to reuse a brand after a poor delivery experience, with high shipping costs (71 per cent) being a major deterrent.
  • Also, 41 per cent value a quality delivery experience when choosing to shop from a brand regularly.
  • Moreover, 73 per cent of consumers now shop both online and offline.
New research reveals the extent of negative delivery experiences on customer loyalty, with 81.4 per cent of Australian consumers stating they are not likely to shop with a brand again following a below par experience. Around 71 per cent of Australian consumers rank ‘high shipping costs’ as the biggest barrier to becoming repeat customers.

Looking at customer loyalty drivers, 41 per cent of Australian consumers rank the quality of delivery experience as a key reason why they regularly buy online from the same brand. Furthermore, affordable prices and product quality rank as the first and second most important factors for consumers, according to a survey by cloud-based e-commerce shipping solution ShipStation.

Australian merchants agreed on the importance of product quality and delivery quality as customer retention drivers in line with consumer expectations, but disagree on the topic of affordability, with 46.6 per cent of respondents ranking it as a key retention driver.

As e-commerce habits have evolved, the majority of consumers now take a hybrid approach to shopping, with over 73 per cent of Australian consumers stating they shop both online and offline. The study highlighted that 66 per cent of Australian consumers report doing over a third of their shopping online.

Apparel comes out on top when looking at e-commerce purchases, with almost 74 per cent of Australian consumers having made an online purchase in this category over the past 12 months.

Over 90 per cent of Australian consumers state that a lack of adequate delivery options can influence whether they abandon their cart at the online checkout. Breaking this down, over 60 per cent of consumers state they will sometimes abandon their cart and 30 per cent indicate they will quite often or always abandon their cart if their desired delivery option is not offered.

In contrast, over 38 per cent of Australian merchants surveyed believe a lack of delivery options offered at the checkout ‘never’ prevents consumers from finalising their purchase.

Only 30 per cent of Australian consumers choose marketplaces as their preferred e-commerce channel. In fact, the majority of Australian consumers—56 per cent—report a preference to shop directly on a brand’s website. Additionally, the research reveals that while social commerce is a growing industry, at present only 3 per cent of Australian consumers consider it their preferred e-commerce buying channel.

About 43 per cent of Australian consumers resell their old purchases/unused items on third party platforms.

“The e-commerce market today will favour merchants who understand the opportunities and make the necessary investments in areas such as their delivery experience, omnichannel proposition, and options. Those who don’t, will find life very difficult,” said David Boyer, VP, head of Australia and New Zealand at Auctane, ShipStation’s operating group.

Fibre2Fashion News Desk (NB)

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